United Kingdom-Beef farming returns looking good on paper.

UNITED KINGDOM-BEEF producers pocketed their highest proportion of the retail price for 13 years during 2008, according to figures just published by Eblex.

They earned almost 50% of the retail price, with average farmgate prices of 259.60p/kg, up 26% on 2007. The average retail carcass price only increased by 15% to 520p/kg in the same period.

It was a similar story for the lamb sector, with producers’ share of the retail price jumping by 47% to around 296.8/kg, while retail carcass prices only rose by 9% on the 2007 figure to 628.8p/kg.

But Eblex chief executive Richard Lowe said: "Farmers will undoubtedly welcome the news they received a larger share of last year’s retail price, but the ongoing impact of increased costs means they are still struggling to achieve real profitability. Processors are now clearly battling with the challenges of the exchange rate, tightening domestic supplies and changing consumer consumption patterns, as shoppers switch to cheaper cuts, such as mince and stewing steak."

The actual volume of beef and lamb sold to shoppers last year was down on 2007. Beef sales dipped by 2.3% and lamb by 4.1% to £1,717m and £634m respectively. Eblex is bringing its Market Outlook Roadshow to the North East later this month, which takes the form of a workshop analysing current market conditions and consumer purchasing patterns, plus sessions on livestock selection and breeding.

It takes place at Helme Park Hall Hotel, near Fir Tree, Bishop Auckland, on February 12. For more information, contact Hellen Tordoff on (0870) 609-1840.