Protein in high demand as meat prices drive food inflation

Farmgate beef and lamb prices have started to ease back during May, however tight cattle supplies in the UK and further afield continue to support prices with finished steers still trading at £2/kg above last year’s levels at close to 680p/kg deadweight.

These buoyant farmgate beef prices have pulled through into the latest British Retail Consortium (BRC) figures, with food inflation increasing by 2.8% year-on-year in May.

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BRC chief executive, Helen Dickinson, said:

“While overall shop prices remain unchanged in May, food inflation rose for the fourth consecutive month.

“Fresh foods were the main driver, and red-meat eaters may have noticed their steak got a little more expensive as wholesale beef prices increased.”

Meanwhile, the Association of Independent Meat Suppliers (Aims) monthly inflation report showed that overall prices for beef, lamb, pork and chicken increased by 1% during May.

Tony Goodger, head of communications at Aims, said:

“Beef and Lamb have shown the biggest rises with increased demand from an ever-growing customer base both in the domestic and global markets, while pork and chicken have seen increased input costs from feed, energy, labour, insurance and the ongoing need to improve site biosecurity.

“I fully expect the upward year-on-year trend to continue, especially as the impact of the changes to the minimum wage and national insurance really begin to kick in.”

Similarly, Kantar figures showed total spend on beef products up by 4.8% year-on-year in the 12 months to 20 April, driven predominantly by higher average prices paid but also slightly greater volumes.

Fraser McKevitt, head of retail and consumer insight at Kantar, added that, more recently, the weather had encouraged more barbecues with chilled burgers “flying off the shelves” and sales growing by 27%.

Global supplies

The UK is not alone with higher beef prices, and it is a similar story over in the US, with beef at record highs.

Figures from the US Bureau of Labour Statistics show the average cost of one pound of ground beef reached $6 (£4.45) in April, up by 26% in the past two years.

The US Department for Agriculture Cattle Market Outlook for May says cattle supplies are even tighter than expected, with production forecast to fall by 5% in 2025 and prices in 2026 projected to reach new highs.

However, it is a different picture in Australia, where cattle throughputs at abattoirs were 20% higher year-on-year during the first three months of 2025.

Stephen Bignell, market information manager at Meat & Livestock Australia, said:

“The elevated female slaughter rate reflects regional responses to seasonal pressures, particularly in the south where a prolonged and expanding drought is impacting numbers.

“While some areas are destocking, others are benefiting from improved conditions and holding onto stock.”