First green shoots in supermarket beef price recovery are seen
An across the board rise in supermarket prices is raising hopes of a more secure domestic beef industry in the future.
So says the National Beef Association after taking note of an average 14.2 per cent lift in rump steak values and an even more important 11.9 per cent jump in lean mince averages which were recorded in all four of the big supermarket chains over the four weeks ending July 17th.
"These much needed price rises indicate that the major multiples have at last realised it is necessary for them too to play their part in making sure that the domestic beef industry is able to flourish after the removal of direct subsidies over 18 months ago," explained NBA chief executive, Robert Forster.
"It appears they have accepted that the survival of an enduring and commercially viable beef industry is impossible unless consumers pay more for the product and the additional margins this will create are then passed back through the supply chain so both processors and farmers can feel financially secure."
"If this forward thinking move is followed up with further price lifts, and sensible sales margins rather than high volumes based on discount are adopted by the supermarket's as a long term business creed, then the beef sector can soon expect to feel more comfortable and be able to plan for a more settled future."
According to the NBA a 500 gram pack of rump steak is retailing for £9.11 which is £1.13p more than it did in the period up to June 19th and a similar sized pack of mince is costing 46p more at £4.32p.
"Let us hope this has been the start of a general move that eventually sees retail prices established at a level which gives the multiples
supply security and at the same time creates commercial conditions that encourage long term producer survival," said Mr Forster.
"It appears that calls for supermarkets to introduce some financial oxygen to processing and production systems have at last been heeded. Processors will be the first to benefit but if there are further lifts in the retail price then farmers will begin to enjoy improved incomes too."
"In the meantime arguments that persuade retailers they must focus even more attention on home produced beef instead of imports must continue to be made."
"These include insistence that the production standards demanded of the UK farmer are mirrored in all imported beef from all sources and that more UK beef is elevated to the premium priced retail bands," Mr Forster added.
