The producer share of beef retail price is surging to annual highs, but prices are being kept low by discounters.
The share of beef retail price producers receive has increased for the fifth consecutive month, rising to almost 52% for September according to AHDB Beef and Lamb.
This is two points up on the previous month and seven points up on the 10-year record lows of April, when farmgate prices were struggling.
Despite a combined market share in the UK of just 10.8%, low beef prices from supermarkets Aldi and Lidl have prompted the four major retailers to follow suit, leading to price deflation.
Although the producer retailer share is currently sitting at its highest level this year, it is still below the five-year average, (2011-15) of 53%.
The short-term outlook remained positive for beef, with the weakened pound contributing to fewer imports and a far improved export market, said the levy board.
AHDB stressed for the retail price to increase, the industry must focus on, new product development, convenient meal options and innovative cuts that meet the needs of today’s consumer.