Brexit: UK beef prices fall as imports set to rise

UK meat prices on a decline, while Brexit increases import prices

A year of static sales and falling beef prices has created an “intensely” competitive marketplace, according to meat manufacturer Dovecote Park, as analysts warned that the price of meat imported to the UK would increase.

The development comes as Extra Detail group – which includes Dovecote Park – reported its results for the year ending October 2015.

The group’s turnover dipped from £174M to £170M for the year, despite a slight increase in volumes produced, while pre-tax profits increased to £3.2M from £2.9M.

It said Dovecote’s sales had remained static, while beef prices remained below the previous year’s value. It also said bovine TB had taken a toll on the industry.

Based in West Yorkshire, Dovecote Park is a major supplier of meat to Waitrose.

Steady decline

While the price of meat in the UK appeared to be on a steady decline, prices for meat – especially bacon – imported into the UK would rise, thanks to the nation’s decision to leave the EU, said market analysts.

Analysts at Rabobank warned that the rapid decrease in value of the pound would create “upward pressure on meat prices”.

The UK imported about half of its Bacon from the EU – mainly from Denmark, Germany and the Netherlands.

Justin Sherrard, global strategist of animal protein at Rabobank, said: “It’s not possible to say by how much bacon prices will rise, but euro-denominated exporters will expect to be paid as before by GBP-denominated buyers.”

Increase its costs

Rabobank described the UK as a food importing country and its isolation from the internal EU market after Brexit was likely to increase its costs of sourcing food products, while it also increased the costs of the technology needed to produce food.

“Over time, Britain’s decision to leave the EU will most likely result in higher costs of trading,” said Rabobank.

“As such, it will impact trade flows and prices of food and agricultural products, both within and outside the UK.

“Additionally, non-UK based [farming and agriculture] companies might decide to postpone investments in the UK until there is a clearer picture of how trade will settle following a transition period.”

Related News

A UK trade deal with the EU could be frustrated by 'east European vested interests'

EU trade deal to be delayed by ‘east Europeans’

The exporters' association fears a euro backlash against British products

Brexit risks euro backlash against British goods

Dale Valley Rossendale has acquired the assets of B Riley & Sons

Burnley abattoir business bought out of administration

Semi-automatic tray sealer is world first according to Proseal

Semi-automatic sealer launched for skin-deep packs

US beef and lamb exports to the US could be worth up to £60M

Beef and lamb exports to US, worth millions, step closer

Bacon slicing into stacks or shingles gets a big production boost

Bacon slicing into stacks or shingles gets a big production boost

Food prices will rise as rising input costs eat into supplier profit margins

Food inflation set to return in 2017

Kirwan wants similar tariff-free sales of beef and lamb with the EU kept

Beef sector seeks tariff-free EU trade

Typhoo Tea boss Somnath Saha claims there was a ‘knee-jerk reaction’ to Brexit

Typhoo boss: Brexit is a grocery-wide export opportunity

Meat processor Newby Foods, based near Northallerton, has won a landmark legal ruling over MSM

Landmark fresh meat ruling for Newby Foods

Superb: is said to offer nutritional benefits due to its fibre and protein content

New soya protein fibre aims to improve meat texture

Sorter picker

Meat sector embraces Industry 4.0

Twitter exploded today, with the food industry expressing its fears after the EU referendum

Food industry reacts to Brexit – in Tweets

Here's what Brexit could mean for food and drink manufacturers

Brexit: what it means for food and drink manufacturers

Food prices 'would not rise' after a vote to quit the EU

Food prices ‘will not be affected by Brexit’

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.