Demand for beef holding up well

Demand for beef has remained “remarkably robust”, despite the recession, according to the latest Beef Briefing from EBLEX, the industry body for beef and lamb levy payers.

“Minced beef sales have continued to grow over the past year, with stewing beef demand also strengthening somewhat,” says EBLEX economics manager Mark Topliff.

“Current retail figures show GB beef sales of just under 300,000t in the 52 weeks to the end of February. While down on the record of nearly 307,000t recorded in 2008, sales remain well up on previous years, underlining the continuing stability of consumer demand.”

Sales of beef mince have increased by about 5% in the year to almost half of annual consumption as consumers look for “value options” at the meat counter. Stewing beef sales have also increased slightly over the past year to 14% of the retail total.

But roasting beef sales have returned to their longer-term downward trend, back to about 21% of consumption compared with 28% in 2003.

This is as much due to the reduced frequency of formal meal occasions in most British households as to pressures on income, says EBLEX.

But any reduction in hindquarter demand is likely to be offset by the continued decline in national prime beef supplies, it adds.

Meanwhile, forequarter imports from Ireland are said to represent “good value for money” at a time when retail beef price growth is expected to be higher than other competitive meats.

“This price growth may put downward pressure on overall sales, but the market trends bode particularly well for cull cow and dairy-bred beef bull demand,” says Mr Topliff.