Beef Prices

​As of February 2025, the UK beef market is experiencing significant price increases, influenced by a combination of supply constraints, rising demand, and external economic factors.​  The wholesale cost of beef has skyrocketed by 25% in just five weeks. In this blog, we explore some of the few key reasons.

Why Is Beef Going Up In Price?

• Reduced Cattle Supply

According to Farmers Guide, UK beef production is projected to decline by 5% this year, totalling approximately 885,000 tonnes. This reduction is attributed to several factors, including underlying business profitability and strong beef prices. Additionally, prime cattle slaughter is expected to decrease by 6%, with further supply reductions anticipated into 2026 due to previous trends in calf registrations. This is further expedited though the closure of farms. Last year, around 30 farms in Scotland shut down, significantly reducing local production and adding to the supply shortage.

• Increased Demand

Despite economic uncertainties, domestic beef consumption is forecasted to grow by 1% in 2025, intensifying competition for the limited supply available. Consumers are increasingly favouring fresh, primary beef cuts over processed options, driven by concerns about ultra-processed foods and a focus on health. This shift in consumer preference supports demand for various beef products, from everyday cuts like mince to premium selections.

• Economic Factors

Retailers and suppliers are adjusting prices in response to recent tax changes, including a lower national insurance threshold and a higher rate, as well as an increase in the minimum wage. These changes pose challenges for retailers and fresh food producers, who rely heavily on low-wage, part-time workers. Fruit and vegetable growers, facing tight profit margins, will struggle to absorb the increased costs and are likely to pass these on to retailers. Consequently, food inflation, which rose from 2% in December to 3.3% in January, is projected to further rise to between 4.5% and 5.5%. Rising expenses for feed, energy, and other inputs mean that farmers are passing on these increased costs to consumers.

• Global Market influences

International demand and ongoing supply chain disruptions have significantly influenced beef prices in the UK, contributing to market volatility. Rising global demand, particularly from major importers like China and the EU, has intensified competition for beef supplies, driving up costs. Simultaneously, supply chain disruptions, including delays in transportation, labour shortages, and increased feed costs, have added further strain on production and distribution. Trade policies and post-Brexit regulatory changes have also complicated import and export processes, affecting the availability and pricing of beef in the domestic market. As a result, UK consumers and businesses continue to face higher beef prices, reflecting the complex interplay of global market forces.

• Extreme Weather Conditions

Unpredictable weather events have severely impacted agricultural production, leading to lower crop yields and supply shortages. These disruptions have intensified the already tight supply situation, causing food prices to rise as demand outpaces availability. Farmers are struggling to adapt to erratic climate patterns, further straining the global food supply chain.

How Are Eric Lyons Dealing with the Rising Costs?

Our farmers are facing significant challenges, and we’ve worked hard to absorb as much of the rising costs as possible. This is why the price increase remains minimal and does not fully reflect the true impact of market changes. As a business, we are committed to supporting our farmers and suppliers while continuing to provide you with the high-quality British beef you know and love.

Stakeholders across the supply chain, from producers to consumers, will need to navigate these challenges in the coming months, but one thing that will remain is the quality of what we deliver to our customers.