Wednesday 9 July 2008

Red Meat Grocery Sales - Beef and Pork Holding Up, Lamb Down


The new British Pig Executive (BPEX) website now carries monthly red meat sales through supermarkets. Here's a look at data for the 12 weeks ending 18th May 08 compared with last year.Data is compiled by TNS.


1. Price inflation is not as rampant as government figures make out, probably because the Office of National Statistics (ONS)does not capture promotional offers such as buy one get one free. Of which there have been many. TNS shows beef prices up 5%, lamb up 5%, and pork up 4%.


2. There are signs of a cutback by consumers. Consumers are buying the same amount of red meat as this time last year, but there is a trading down to cheaper meats and cuts. Total beef tonnage sales are the same as last year, pork sales have increased by 2%, but lamb sales are 3% less. Lamb could be suffering because it is more expensive. Lamb sells at £6.12 average price per kilo compared with beef at £5.46 and pork at £4.46. Beef and lamb mince and stewing steak have increased sales, whereas roasting joints of both species are selling less than last year. Frying and grilling beef have also dropped in sales, although lamb chops have held steady.


3. Sales of bacon and sausage are growing. Both have increased by 4% in tonnage, and average prices are up by 2% per kilo. Bacon selling prices average £5.63 per kilo, and sausages £3.08.It is easy to see why sausage sales should have grown, given how comparatively cheap they are. Bacon may be doing well because there is so little waste due to easy portion control, and willingness to eat the fat.


4. Sales of cooked meats are up by 2% despite costing a hefty £7.85 per kilo,which shows that if a product meets a real consumer need, in this case convenience, sales are likely to grow despite a high price.


5. There are differences by country. Scotland has turned away from beef and lamb in a big way, with sales of beef down 3% and lamb down 12%. By contrast Wales remains loyal to lamb, with volumes up 2%, beef is down 5%, and pork sales are static.


Note

The future for lamb sales looks bleak just now. Consumers are buying less from grocery stores, and sales through hotels and restaurants, which feature alot of lamb on their menus, will be struggling as consumers turn away from eating out.

No comments: