Analysis Cattle & Beef
Slaughter prices of British beef cattle reach new record
The British prices for beef cattle have now reached record levels after the summer. Both demand and supply are pushing prices up, but strong exports are also making British beef significantly more expensive. As a result, the price difference between Great Britain and the European Union has increased to more than €1 per kilo.
The British slaughter price of U-grade beef cattle is currently at a record level. The price rose to 5.20 pounds (€6.20 at current exchange rates) per kilo at the beginning of October, according to data from the British agriculture organization (AHDB).
Compared to the start of the summer, the price of beef has significantly increased. The price has risen by 6.2% since week 23. The slaughter price was 4.90 pounds (€5.85) at that time. There is also clearly a structural increase. In the same week a year earlier, the U-grade slaughter price was 4.82 pounds (€5.75). This means that the price of British cattle is currently 7.9% higher than a year ago.
Strong supply, low demand
An important reason for the significant price increase is a lower supply. In Great Britain, it is becoming more difficult for feeders to obtain cattle. This is due to a decrease in the number of beef cattle in both Scotland and England. In Scotland, the number of beef cattle decreased by 2%. In England, the decrease was even stronger, with a 5% decrease in the number of beef cattle. Both countries together have just under 1 million beef cattle in mid-2024. In 2020, the number of cattle was around 1.5 million beef cattle.
In addition, the price of beef is being driven up by strong demand. According to the AHDB, demand in Great Britain increased significantly in the weeks following the summer. The country also benefits from strong exports. Data from the British customs (HMRC) shows that exports in the first half of the year increased by 2% to 860 million pounds (Over €1 billion). According to the AHDB, this growth is due to stronger trade relations outside the European Union. Exports outside the EU increased by 37% compared to the 2023 level, and export volumes to the two main trading partners increased by 6% and 15%.
Significantly higher prices
Compared to countries in the European Union, there is a gap of more than €1 per kilo. This applies to prices on the European mainland, as well as to Ireland, the main import market of Great Britain. For comparison, the Dutch price of U-grade cattle is €4.97 per kilo.
