Beef prices climb as UK meat production continues to shrink

UK – Beef prices in UK supermarkets have gone up by 3.2% in June 2025, according to the Association of Independent Meat Suppliers (AIMS), as lower production volumes continue to squeeze supply.

AIMS said the average price of red meat and chicken rose by 1.8% month-on-month, with the sharpest increase recorded in lean beef mince, which went up by US$1.06 (equivalent to £0.82) per kilogram, or 9.15%.

Standard beef mince increased by 4.6%, or roughly US$0.36 (equivalent to £0.28) per kilogram, while sirloin and fillet steaks both jumped by more than US$1.30 (over £1.00) per kilogram.

The Agriculture and Horticulture Development Board (AHDB) said the retail pricing was being affected by reduced beef production, which dropped to 70,000 tonnes in June—down 8% from the previous month and 5% from the same time last year.

Defra figures confirmed that beef production has stayed below 2024 levels for each month of 2025 so far, with the total output for the first half of the year standing at 445,000 tonnes—4% lower than the same period in 2024.

AHDB attributed this trend to a smaller number of prime cattle being slaughtered in June, which fell by 15,000 head (an 8% drop from May), reflecting the tight supply forecast for the year.

Average carcase weights for prime cattle also decreased, falling by 2.5kg from May and by 1.9kg compared to June last year, further contributing to lower overall volumes.

Meanwhile, cull cow slaughter for June stood at 41,300 head, a number that has remained mostly unchanged month-on-month but is still 3,000 head below June 2024 levels.

AHDB noted that favourable milk prices and relatively low feed costs have encouraged dairy farmers to retain cows longer, limiting the number of animals sent for slaughter.

Sheep meat production rises as new season lambs arrive

While beef output continues to fall, sheep meat production has increased, with Defra data showing a 3% rise from May and a 9% jump from June 2024, bringing the total to 23,000 tonnes for the month.

The increase is linked to higher carryover from last year and the arrival of this season’s lambs, according to AHDB.

Clean sheep slaughter grew by 5% from May and by 9% year-on-year, while the number of ewes and rams culled rose slightly, by 2% compared to June 2024, despite an overall decline in the national breeding flock.

AHDB added that some producers may be bringing forward lighter lambs to market due to strong prices and limited grass growth.

Inflation pressures add to cost concerns

The Office for National Statistics reported that UK inflation hit 3.6% in the year to June, with food and non-alcoholic beverage inflation reaching 4.5%.

AIMS said the rise in beef and chicken prices aligns with overall inflation trends, while the British Retail Consortium linked strong food sales to continued food price increases.

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