New challenges for red meat sector as it returns to pre-Covid levels

New pressures – ranging from price inflation to hot weather – are beginning to impact both consumers and farmers
New pressures – ranging from price inflation to hot weather – are beginning to impact both consumers and farmers

The impact of the Covid pandemic on the UK red meat sector is subsiding, but new external pressures are starting to be felt, according to analysis.

These new pressures – ranging from price inflation to hot weather – are beginning to impact both consumers and farmers, Hybu Cig Cymru – Meat Promotion Wales (HCC) says.

According to Defra figures, UK prime lamb slaughterings for each of the first five months of 2022 were higher than the previous year’s mark.

As a result, the total throughput of lambs at UK abattoirs during the first half of the year was up by 8% (or 440,700 head), a return to more normal slaughter levels seen before 2020.

The throughput of cull ewes and rams is also notably higher than 2021 levels, but comparable with the long-term average for the corresponding period.

The total throughput of cattle at UK abattoirs stood at 1.3 million head during the first half of 2022.

The first half of 2021 did experience record low throughput figures for cattle, so the latest data suggests that supply has since recovered.

Responding to the figures, HCC’s data analyst Glesni Phillips said the sector was back to more normal patterns of production as seen before 2020.

However, she warned there were signs pointing to different external factors which were beginning to have an impact on UK red meat.

"The figures for lamb and beef throughput during the first half of this year suggest that the turbulence of the immediate post-Brexit and Covid periods has subsided."

But she said: “Retail data is beginning to suggest recessionary buying patterns on the part of hard-pressed consumers, with some shifting to cheaper cuts and cheaper proteins.

"This will be a concern for the industry in terms of carcase balance," Ms Phillips warned.

High input costs were also having an adverse effect on farm balance sheets, she said, and the combined impact of the dry weather and high feed prices may limit the numbers of lambs ready for market over the next few weeks.

"The high level of slaughterings in the pig sector – 8% higher than the 5-year average – suggest that some producers are reducing stock levels due to high costs.”

HCC’s Market Bulletin for July, released on Friday (29 July), also contains the latest news on market price trends for farmers and processors.