The huge drop in farm gate prices in Britain and Northern Ireland was blamed on a very weak meat market and the Kantar figures published in this week’s LMC bulletin tend to support this view.

This decline though down also in value, was driven primarily by a decline in the volume of beef sales. In the twelve weeks ending 24 May 2015 62,618 tonnes of beef were sold through UK retailers, a 1.6 percent reduction on the corresponding period in 2014 when 63,684 tonnes were sold. As is usually the case, the decline wasn’t spread evenly across the carcase. Sales of frying and grilling steaks increased by three percent year on year while volume sales of roasting joints remained stable, grill products and burgers also increased as did pie sales which were up almost 6 per cent. That was the good news, reports all spring about coldstores bulging with stocks of manufacturing beef are borne out by the retail figures on stewing and mince sales.

Sales of stewing pieces were back by 7.3%, sales of mince were back by 2.6% and sales of beef marinades were back by 1.6% year on year. All of these products come primarily from the forequarter of the animal and made out of what is referred to in the trade as “manufacturing beef” which is further classified under its fat percentage. Therefore we have terms like 90vl which is 90% lean beef, 10% fat and 70vl which is 70% lean beef and 30% fat. This was the problem product in the trade all spring, certainly at the prices cattle were making in the UK before the fall.

Turning to lamb, while the value was down slightly due to lower retail price sales, the volume was a welcome 4% higher compared with the same period in 2014. Lower lamb prices were driven by more availability of cheaper lamb supplies from New Zealand this year but it is at least some small consolation that more consumers bought more of the product. Mini roasts and marinades were the big performers showing growth in sales by a whopping 30% according to the LMC bulletin and lamb mince sales increased by 15%.

The good news from more recent reports in the trade is that sales have increased for beef in the UK with stores emptying fast recently. This is borne out by a jump in farm gate prices for cattle which are also scarce at present which means that farmers hold the aces in negotiations with the factories. Indeed the factories are complaining that any lift in the market has been wiped out for them by the increase in cattle prices. Lambs continue to face a difficult trade however with the French market weak and the Irish supply coming off farms coming to its summer peak.