Market report: Meat retail/farmgate price gap narrows

The gap between farmgate and retail prices for pork and lamb narrowed markedly between 2008 and 2009, according to the AHDB‘s latest UK Market Survey.


Lamb producers benefited the most, with historically high farmgate prices only being passed on in part to the consumer. Average farmgate prices increased by 62p/kg over the year, while retail values only rose by 51p/kg, narrowing the gap from 52.8% in 2008 to 47.3% in 2009.

The spread for pork prices fell from 62.6% to 60.1%, with farmgate prices rising by 15% against an 8% increase in retail values. A similar trend led the price gap for bacon to drop from 70.4% to 68.4%. However, beef prices increased by 7% at both farmgate and retail level, leaving the gap stables at 50%.

In December retail prices for pork loin steaks were 1% lower than a year earlier, with fillet end of leg dropping by 6% and boneless shoulder prices rising by 8%. In the beef aisle, the price of standard mince was 4% down, year on year, with premium mince up 1%, hindquarter cuts up 1-2% and fillet steak down 2%.