Gap between farmgate and retail meat prices narrows

The gap between farmgate and retail meat prices narrowed slightly last month, according to latest figures from AHDB meat services.

Higher cattle prices meant beef producers received about half of the retail price, with average farmgate prices at 278p/kg compared with a relatively unchanged retail price of 561p/kg.

Sheep producers also saw a slightly bigger share of shoppers’ spending, due to strong lamb markets and falling retail prices. The spread between the farmgate and average retail price fell one percent to 51.6%. Average farm prices were 323p/kg, compared with average retail prices at 668p/kg.

The decline in retail prices occurred across most cuts, apart from boneless shoulder and lamb mince. The biggest fall was for diced lamb, which was down 5% to £10.10/kg, while the price of whole leg joints fell 3% to £8.57/kg.

Pig producers were less fortunate, however. Average retail pork prices, especially for fillet end leg joints and diced pork, increased slightly between August and September to 367p/kg, but farmgate prices fell 3p/kg to 150p/kg.

Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

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