From grocery researchers Kantar Worldpanel comes news that
after years of plummeting consumption volume sales of lamb grew by 14% in the
year ending August 13th 2013. (Source: BPEX). By contrast pork
consumption dropped by 5% and beef by 2%.
The reason is price of course. Over the same period the
price of lamb per kilo dropped by 5% to £7.85 per kilo, compared with an
increase of 6% for both beef and pork.
Staples like bacon and sausages have suffered from price
increases too. The price hikes have led to a
2% drop in bacon sales, and sausage sales are down by 4%. The only other
sector to show an increase is sliced cooked meats which grew sales by 1%.
At the same time as these figures were released we heard
Andrew Large of the British Poultry Council predicting that by next year
chicken will account for over half of all meat eaten, up from just over a third
20years ago. He attributes the growth in
sales to price. In the last two decades he says, chicken prices went up by 31%,
whereas beef prices went up by 50% and lamb prices have doubled.
It is easy to over analyse the figures. We can though
conclude that price dictates consumers’ buying habits and they readily switch from
one type of protein to another. Which means that the price of, say, beef cannot
rise in isolation without there being a knock on effect on consumption.
We might also conclude that the image and benefits of red meat,
particularly British produced meat, need to be constantly reinforced to
consumers. If they felt that red meat was a “must have” then they would bite
the bullet and purchase the same quantity regardless of price rises. Yet
despite the increase in lamb sales in the last year, the overall volume sold of
red meat including bacon and sausages dropped by 2 %. This may seem small, but from
a producer perspective a drop in demand is a cause for concern as it all too
often leads to oversupply and a consequent fall in farm gate prices.
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