As already mentioned the Eat Out To Help Out scheme has been extremely successful but as a result, the increased retail demand has put a significant amount of pressure on availability of product.
With the lack fresh imported options Beef pricing has been significantly affected as a result. The demand of higher quality UK carcasses is outstripping availability, which means beef pricing is forecasted to remain much higher than previously expected.
Prime beef is costing 13.8% more than the same period last year with pricing rising 16% in just the last 3 months. As with beef, lamb has also bucked the price trend as a result of demand stemmed from eat out to help out. Coupled with high demand from China there is a lack of lamb coming into the UK. Pricing of dead-weight lamb is 18.74% higher than the same period as last year, which in turn has had an effect on the cost of butchered product.
The effects of retail demand hasn’t just stopped there, poultry has also seen inflation. What is also worrying is that due COVID-19 restrictions and what that could mean for Christmas along with the uncertainty of the UK’s ability to throw a Christmas party, there is a reluctance from farmers to show a commitment to put down stock.
This will undoubtedly have a negative effect on the market that could drive turkey prices up to record levels. We recommend that all of our members confirm their turkey requirements as soon as they possibly can.