Market Bulletin Information Changes in Carcase Meat & Offal Consumption The Family Food Survey for 27 was published recently by the Office of National Statistics. This report looks at how the consumption of carcase meat and offal in Wales has changed since 21 and how household expenditure has been affected. 14. Graph 1. Consumption of Carcase Meat & Offal in Wales Source: Defra, National Statistics 12. kg/person/year 1. 8. 6. 4. 2.. 21/22 22/23 23/24 24/25 25/26 26 27 Beef & Veal Lamb & Mutton Pork Total Carcase Meat Offal Graph 1. shows that total carcase meat consumption in Wales fluctuated marginally since the 21/22 survey between 11.5kg/person/year and 12.kg/person/year. Within this sector, beef and veal consumption improved from 5.3kg/person/year in 22/23 to stabilise at around 6.4kg/person/year until 27 when consumption dropped slightly to 5.9kg/person/year, 11% up on 21/22 levels. Meanwhile, lamb & mutton consumption gradually reduced from 3.kg/person/year in 21/22 to 2.2kg/person/year in 27, a drop of 27%. Pork consumption increased by 16% over the period from 3.2kg/person/year in 21/22 to 3.7kg/person/year in 27. Offal consumption remained at a fairly low level, ranging between 7g/person/year and 2g/person/year. The majority of offal consumed was liver. 7. Graph 2. Expenditure on Carcase Meat & Offal in Wales Source: Defra, National Statistics 6. /person/year 5. 4. 3. 2. 1.. 21/22 22/23 23/24 24/25 25/26 26 27 Beef & Veal Lamb & Mutton Pork Total Carcase Meat Offal
Although total carcase meat consumption stayed fairly static, expenditure increased from 43.68/person/year in 21/22 to 65.52/person/year in 27, an increase of 5%. Expenditure on beef and veal increased from 25.48/person/year in 21/22 to 33.28/person/year in 27, an increase of 31%. Spend on lamb and mutton more than doubled from 7.28/person/year in 21/22 to 15.6/person/year in 27, despite a general reduction in consumption over the same period. Consumer expenditure on pork increased from 1.4/person/year in 21/22 to 16.64/person/year in 27, up 6%. Expenditure on offal has remained at a very low level throughout the period between 21/22 and 27, ranging between 1.4/person/year and.52/person/year. Summary As in Wales, the consumption of total carcase meat in the UK has fluctuated within a narrow range. In 27 the average UK consumption was 12.2kg/person/year. Meanwhile, spend on carcase meat in the UK increased from 53.56/person/year to 62.92/person/year. However, consumption of non-carcase meat and meat products declined by 5% from 43.5kg/person/year in 23/24 to 41.3kg/person/year in 27, despite a 3% increase in expenditure to 24.36/person/year. The 27 survey showed how consumers behaved prior to the economic downturn. Now that consumers are feeling the pinch, the meat industry must look carefully at their marketing strategies to ensure that consumption of meat does not suffer at the expense of increasing prices. Minister Announces 4.5m Research Boost for Welsh Red Meat Sector A 4.5million boost for the Welsh red meat industry was announced by Rural Affairs Minister Elin Jones on Thursday (8 January). Hybu Cig Cymru Meat Promotion Wales was successful in drawing down money for three new projects under the Rural Development Plan for Wales 27-213. The aim of these projects is to increase financial returns for beef and sheep farmers in Wales, exploit the latest technology to advance best practice, and source a wider range of economic and market intelligence to improve strategic planning. HCC has received a total of 4,56, for three projects under the Rural Development Plan for Wales which is part financed by the European Union through the European Agriculture Fund for Rural Development (EAFRD) and the Welsh Assembly Government. Consumers Show Shopping Savvy The Institute of Grocery Distribution (IGD) carried out a study recently to look at how the behaviour of food shoppers is changing. Food shoppers are now investing more time in their shopping, meal planning and preparation and are adapting their behaviour to maintain the same food experiences they had prior to the economic downturn. Higher social groups have been affected more by rising petrol prices while 48% of DE shoppers highlighted that rising food prices were the main reason for their changes in shopping behaviour, compared to 36% of AB shoppers. In general, some 16% of shoppers have cut back on food shopping, 4% of food shoppers have bought more products on promotion, and 29% have cut back on eating out. Benn Calls for Clearer Meat Labelling UK Environment Secretary, Hillary Benn has called for supermarkets and food companies to introduce country-of-origin labelling so that shoppers can choose to buy British meat. Speaking at the Oxford Farming Conference, Benn urged people to buy more British and eat more British and said he planned to meet with food industry representatives to discuss how they can get ahead by voluntarily introducing country-of-origin labelling. Hilary Benn told delegates that the UK government was pressing Europe to introduce mandatory country-of-origin labelling for meat, with details of where the animal was born, reared and slaughtered. He praised the quality and quantity of food produced by British farmers and said that food security was a priority, adding that protecting the environment was vital to increase future food production. Long Term Strategy to Secure Multi-million Pound Welsh Red Meat Sector A major new strategic action plan developed by Hybu Cig Cymru Meat Promotion Wales in close consultation with the Welsh red meat industry and the Welsh Assembly Government is now out for consultation and comments are invited before the closing date of February 2. The Strategy sets out a detailed action programme to encourage a thriving red meat industry with a longterm future.
Interested parties will be able to access the full consultation document at http://wales.gov.uk/consultations/environment/?lang=en Consumer Statistics Market Movement in Wales 52 w/e 3/11/8 Source: TNS Worldpanel Pork Lamb Beef 6 4 2 2 4 6 8 1 % YOY Change Average Price Volume Expenditure 6 Comparison of Market Share by Meat Type in Wales (Volume) 52 w/e 3/11/8 Source: TNS Worldpanel (%) 5 4 3 2 1 27 26 Beef Lamb Pork Other Meat (excluding poultry)
(%) 1 9 8 7 6 5 4 3 2 1 Retailer Volume Share of Red Meat Trade in Wales, 52 w/e 3/11/8 Source: TNS Worldpanel Total Butchers All Others Total Supermarkets 26 27 Increased auction market throughputs There was an eight per cent increase in prime cattle throughputs at auction markets in Wales in. Steer and heifer throughputs were up 1 and nine per cent respectively compared with 27. This was in contrast to a fall in throughputs at auction markets in England. Last year 299, prime cattle went through the ring, compared with 34, in 27. Despite the rise in throughputs at Welsh markets, the average annual cattle price was up 29 per cent compared with the average price in 27 to almost 145p per kg lw. A similar rise occurred in England. Increased supplies resulted in more than doubling in the number of cull cows sold through the Welsh markets in. Just under 4, cows were graded and those animals falling into the top grade commanded an average price of 118.75p per kg lw, 21p more than in 27. Due to the FMD-related disruptions to trade at the end of 27 and consequent high carryover of lambs into, the throughput of clean sheep at auction markets in Wales last year rose by 24 per cent to 1.4 million head. The average annual SQQ was 128p per kg lw, up 24p on the 27 average annual price. In England 4.3 million sheep went through the ring, 3 per cent more than in 27. Welsh auction market throughputs 27 % change head Prime cattle 21,67 22,78 +7.8 - Steers 1,481 11,552 +1.2 - Heifers 9,4 1,269 +9.2 - Young bulls 1,186 887-25.2 Cull cows 5,675 13,758 +142.4 Clean sheep 1,14,63 1,49,968 +23.7 Cull ewes 347,639 41,79 +15.4
Source: AHDB meat services Beef Prices The average price for prime cattle at Welsh auction markets peaked in the second week of December at 163p per kg lw, nearly 5p more than in the same week in 27. Prices then weakened once the Christmas buying was complete. They ended the year at 147p per kg lw. There was little change in the average cull cow price during December, ending at 82.45p per kg lw and down 14p on the same week in 27. p per kg lw 175 165 155 145 135 125 115 15 Welsh prime cattle prices 26 27 95 Source: AHDB meat services The average England and Wales deadweight steer price firmed in the last two weeks of December, ending the year at 274p per kg dw and 65p more than a year earlier.
p per kg dw England and Wales deadweight average steer price 285. 275. 265. 255. 245. 26 235. 27 225. 215. 25. 195. 185. Source: AHDB meat services Slaughterings Slightly fewer prime cattle were slaughtered in Wales in November compared with slaughterings in the same month a year earlier. Over the 11 months to November slaughterings at abattoirs in Wales totalled 127, head, up one per cent on the same period of 27. Prime cattle slaughterings in England were down five per cent. In the UK as a whole, prime cattle slaughterings fell by seven per cent compared with slaughterings in January-November 27, to 1.9 million head. Cow slaughterings were up by a quarter to 495, head. The number of cattle that passed through the older cattle disposal scheme in Wales in was 9,45. This compared with 1,4 in 27 and 12,22 in 26. In the UK, around 46, cattle entered the scheme in its three years of operation. head 16 Welsh cattle slaughterings 26 27 14 12 1 8 Source: Defra European prices The average EU-27 R3 equivalent male cattle price peaked in week ended 16 December at 3.27 per kg dw, nearly seven higher than in the same week a year earlier. Whilst young bull prices in most member states continued to rise in the subsequent two weeks, in the UK steer prices fell sharply in euro terms as a result of the falling value of sterling. Despite a rise in the Irish steer price, the net effect was a small fall in the overall R3 equivalent cattle price.
per 1 kg dw Average EU cow and adult male cattle prices 33 31 29 27 25 23 21 O3 cow s 27 O3 cow s Steer/young bull 27 Steer/young bull Source: EU Commission Trade In the 1 months to October the UK imported just 2,5 tonnes more fresh and frozen beef than in the same period of 27. Whilst more was sourced from other member states, and in particular from the Irish Republic, almost 1, tonnes less beef was imported from outside the EU. This was entirely due to the shortfall in supplies from Brazil. The number of farms in Brazil approved for export to the EU is now gradually increasing. At the beginning of this year 733 were approved for export. As the weak pound continued to favour exporters, UK exports of fresh and frozen beef in January- October rose by a third compared with exports in 27, to 64, tonnes. Exports to the Irish Republic rose by 7 per cent to 24, tonnes as demand for chilled carcases continued to increase. In October alone a record 3, tonnes of beef were exported to the Irish Republic Beef production in the Irish Republic is estimated to have fallen by around six per cent last year. A small increase is anticipated in 29 as a result of higher cow disposals. tonnes 25, 2, 15, 1, 5, UK trade in beef Jan-Oct 26 27 26 27 Imports EU-27 Exports non-eu-27 Source: GTIS, HM Revenue & Customs Beef Household Purchases
Beef Performance (Volume), 12 w/e 3/11/8 Source: TNS Worldpanel 1 5 (%) 5 Total Beef Beef Roasting Beef Stewing Beef Frying/Grilling Beef Mince 1 15 2 Household purchases of beef in Wales were down 5.7% on the same 12 week period of 27. Although stewing beef volume sales rose by 6.3%, roasting joints, frying/grilling beef and mince sales dropped by 15.7%, 9.1% and.1%, respectively. Meanwhile, beef expenditure was up 1% to 34million in the 12 weeks to 3 November and average price was up 17% to 5.85/kg. Lamb Prices The average SQQ at Welsh auction markets rose in the last two weeks of to end the year at 147p per kg lw, up almost 5p on the same week in 27. Demand for light lambs remained strong throughout most of December and in the week before Christmas light lambs accounted for 3 per cent of the SQQ throughput. By the end of the average light lamb price of 145p per kg lw was up 56p compared with the price in the last week of 27.
p per kg lw 22 2 18 16 14 12 1 8 Welsh SQQ lamb prices 26 27 6 Source: AHDB meat services The GB deadweight SQQ also moved up in the last week of December to average 296p per kg dw, some 42 per cent higher than a year earlier. GB lamb overall SQQ p per kg dw 41 39 37 26 35 27 33 31 29 27 25 23 21 19 Source: AHDB meat services Slaughterings Clean sheep slaughterings in Wales totalled 46, head in November, two per cent less than in the same month a year earlier. In contrast, in England three per cent more sheep were slaughtered compared with in November 27. Over the 11 months to November clean sheep slaughterings in Wales totalled almost four million, nine per cent more than a year earlier and mainly as a result of the high carryover from 27. There was a similar rise in slaughterings in England. In the UK slaughterings totalled 13.1 million, up six per cent. Ewe cullings in Wales in November continued above year earlier levels at 22, head. Over the 11 months cullings were up nine per cent on 27 levels.
head Welsh clean sheep slaughterings 55 26 27 5 45 4 35 3 25 2 Source: Defra European prices The average EU-25 heavy lamb price peaked in week ended 16 December at 4.16 per kg dw. A fall in the UK price in euro terms over the following two weeks offset a firmer French market. The EU price ended the year at 4.8 per kg, three per cent higher than at the end of 27. Italian light lamb prices weakened in the second week of December to 5.9 per kg dw but then remained unchanged through to the end of the year. Spanish light lamb prices fell throughout the month to end the year at 8.45 per kg. In the final week of the average EU light lamb price was two per cent higher than in the same week of 27. per 1kg dw Average EU heavy and light lamb reference price 75 7 65 6 55 5 45 4 35 3 Heavy lambs 27 Heavy lambs Light lambs 27 Light lambs Source: European Commission Trade Imports of fresh and frozen sheep meat into the UK in the 1 months to October totalled just under 1, tonnes, four per cent less than imports in the same period of 27. Less sheep meat was sourced from New Zealand and Australia, as well as from the Irish Republic. Continued contraction in the Irish flock means that production in is estimated to have fallen by as much as 14 per cent. A further decline of five per cent is forecast this year. As a result of the shortage of domestic supplies in the Irish Republic, combined with the advantages of a weak pound, UK sheep meat exports to the Republic rose by two-thirds in January-October to 4,7 tonnes. There was also less competition on the French market and exports to France rose by a quarter to 48,6 tonnes. Gains were made on most other European markets.
tonnes 125, 1, 75, UK trade in sheep meat Jan-Oct 27 5, 25, Imports Exports Source: GTIS, HM Revenue & Customs Household purchases Lamb 1 Lamb Performance (Volume) in Wales, 12 w/e 3/11/8 Source: TNS Worldpanel 8 6 4 (%) 2 2 4 Total Lamb Lamb Chop Steaks Lamb Leg Roasting Lamb Mince Lamb Shoulder Roasting Lamb Stewing Household purchases of lamb in Wales were down 18.6% on the same 12 week period of 27. Volume sales of more expensive cuts like chop steaks, shoulder and leg roasts dropped 21.7%, 28% and 33.7%, respectively. However stewing lamb purchases increased by 49.8% and mince sales were up by 78.9%. Household lamb expenditure decreased by 9% to 12million in the 12 week period, despite an 11% increase in average price to 5.99/kg. Pig meat
Prices The GB DAPP fell for nine consecutive weeks from mid-october. In week ended 13 December the fall in price reflected a 1 per cent increase in throughputs which may have been partly due to the seasonal pre-christmas demand but also possibly as a reaction to the dioxin crisis in the Irish Republic and concerns about supplies. In the same week the Northern Irish average pig price fell by as much as 3p per kg although it recovered the following week. GB prices picked up slightly in the final two weeks of to end the year at 131p per kg dw, some 2p higher than a year earlier. GB Deadweight Average Pig Price p per kg dw 14 135 13 26 125 27 12 115 11 15 1 95 9 Source: AHDB meat services Slaughterings In November there was a slight increase in clean pig slaughterings in Wales compared with throughputs in 27. In England, however, nine per cent fewer pigs were slaughtered. The clearing of the backlog of clean pigs in 27 due to FMD and reduced availability of stock in contributed to this decline. Over the period January to November one per cent fewer pigs were slaughtered in the UK compared with in 27. UK sow cullings in November, at 16, head, were only about half the level recorded in 27. As the pork export trade resumed in November 27 sow cullings had been particularly high. Over the 11 months to November cullings were up 3, head. head 4 Welsh pig slaughterings 26 27 2 Source: Defra European prices
The average EU-27 pig reference price continued to fall during the last two weeks of December. Prices weakened in all the major pig producing countries. From peaking in mid-august, the average EU price had fallen by 2 per cent by the end of to 1.42 per kg. However, prices were still seven per cent higher than at the end of 27. per 1 kg dw 18 17 Average EU pig meat reference price 16 15 14 13 12 27 Source: EU Commission Trade At 95, tonnes, in the 1 months ending October the UK exported 18 per cent more fresh and frozen pork than in the same period a year earlier. Trade with EU member states increased on the back of the weak pound. In particular exports to Germany and the Netherlands were up by around 3 per cent partly reflecting increased demand for sow meat. At the same time, the weak pound made imports into the UK less attractive. In January-October the UK imported 331, tonnes of fresh and frozen pork, 15 per cent less than in the same period of 27. Less was imported from all traditional sources. In particular 3, tonnes less pork was sourced from Denmark. Some of this decline was pork for subsequent curing into bacon. In contrast, the UK imported more bacon than in 27 and in particular from Denmark. More processed pig meat products were also imported. tonnes 5, 4, 3, 2, 1, UK trade in pig meat Jan-Oct Pork exports Pork imports Source: GTIS, HM Revenue & Customs 27 Bacon imports Household purchases Pork
Pork Performance (Volume) in Wales, 12 w/e 3/11/8 Source: TNS Worldpanel 1 1 Total Pork Pork Belly Pork Chop Steaks Pork Leg Roasting Pork Loin Roasting Pork Shoulder Roasting 2 (%) 3 4 5 6 As with lamb, household purchases of pork in Wales fell by 18.6% in the 12 weeks to 3 November. Chop steak volume sales increased by 1.1%, while loin, belly, leg and shoulder sales decreased by 2.6%, 26.5%, 34.9% and 49%, respectively. Household pork expenditure decreased by 5% to 16million, while the average price increased by 16% to 4.83/kg.