Domestic price of beef

IBISWorld expects the domestic price of beef to increase at a compound annual rate of 5.2% over the five years through 2025-26. Prices are expected to average 243 p/kg over 2024-25, down 5% on the previous year. Domestic beef prices are largely determined by changes in the world supply and demand for beef. Domestically, the size of the cattle stock and the share of that stock that is offered up for slaughter can also influence the supply and therefore price of beef meat. The supply of beef imports and the price of imports also is an important factor, especially as the United Kingdom has a trade deficit with the rest of the EU in terms of beef trade. The Republic of Ireland is the most important source of beef imports, accounting for approximately 70% of total imports. Demand is also influenced by substitutes such as poultry, pig meat and sheep meat.

The weakness of the pound in 2016 contributed towards an increase in exports of higher priced cuts and contributed towards a strong overall increase in 2017-18. Prices decreased in the following years due to oversupply in the market. Prices increased in the first six months of 2020 supported by demand for more expensive cuts. Beef prices were impacted by the (COVID-19) coronavirus outbreak in 2020-21. Panic buying led to an increase in demand for all cuts of beef which led to rinsing prices, even after lockdown measures were eased in the summer months. Further lockdown measures in December 2020 restricted supply in the market which contributed to higher prices. In addition, UK producers have also benefitted from significantly less beef being brought into the country, particularly from Ireland. According to Farmers Weekly, imports from the Republic of Ireland were down 11% in the first seven months of 2020, when compared to the previous year. This trend has continued into 2021, with prices rising in almost every month of 2021, reaching a peak of 238.9 p/kg in December 2021. This has been partially caused by lockdown measures easing from April 2021, leading to reopening of UK hospitality businesses, driving demand for beef. These businesses have been busier than usual, due to travel restrictions leading to more people holidaying in other parts of the United Kingdom. Average prices are forecast to expand by 2% in 2024-25, as inflationary pressure increases feed costs, which the majority of farmers have passed on to downstream customers. According to Defra, clean cattle prices have been trending upwards, reaching 267.1 pence per kilogram in February 2023. Prices are inching upwards in 2025 due to rising orders for premium cuts and low supply caused by lack of government support and high feed prices. Higher beef and fresh produce prices pushed up inflation in May 2025.