We are currently facing a very tricky time in our meat markets. As of February 2025, the UK beef market is experiencing significant price increases, influenced by a combination of supply constraints, rising demand, and external economic factors. The wholesale cost of beef has increased 25% in just five weeks! We sat down with some of our suppliers to establish the causes and the outlook for the coming months and years.
Demand. At Butchers Quarter we are seeing a continuing strong interest in grass-fed free-range beef born and reared in Britain. We are seeing customers eating potentially less red meat but focussing on eating British, small production, local produce. There seems to be a general distrust in meat coming from overseas, particularly Eastern Europe and the America’s. Customers have also raised the issue of supermarket quality and provenance.
At BQ all our beef comes from Cheshire, Lancashire or Cumbria.
Supply. There is undoubtedly a constrain on supply of British meat – and this is being influenced by a number of things:
Reduction in Farming
Sad but true. Having looked more into this – we are finding some quite alarming statistics. 70% of farm owners are over 55, 40% are over 65. There must be real concern in the changes to Inheritance Tax coming down the pipeline, where some farms will be forced to sell acreage just to pay the IHT bill. Two things will happen – farmland will pass to non-agricultural uses and or large City Funds will acquire land assets and more land will be either rented or also used for alternative uses. Residential use or solar farms.
Decreasing quality beef stock
We have seen improvements in the availability of beef from the dairy herd – but this is being counteracted with a reduction in the suckling herd. That’s the herd used for the production of meat. We are seeing an increase in heifers being killed for meat due to the improved prices! A bit of a short term approach – but one cannot blame the farmers.
Increased demand from Europe.
There is currently a number of Foot and Mouth outbreaks in central and eastern Europe. Exports from there are halted, and significant numbers of cattle are having to be destroyed as part of this heartbreaking disease.
Macro Economic Pressures
One doesn’t have to look far to see the turmoil in the markets! At home minimum wage [farm workers tend to be at or around these levels] has risen as has tax payable by Employers. This has put pressure on retailers. In the global markets – particularly on trade – we are seeing very unsettled markets around feed, fuel and import taxes!
What does this all mean for you?! With strong demand, weakening supply and rising costs – it is clear food prices are set to rise further. Predictions suggest 5% this coming year. But in terms of meat as noted above, wholesale prices haven risen 25% this year alone – so we need to be cautious on predictions! As always we will do our best to keep our costs as low as we can and not pass on all these pressures.
But the key message here is to support local. By buying from your local butchers – wherever they may be – you are almost always supporting local farmers at a time where things have never been more difficult.