Beef Expenditure Increases Despite Sales Drop20 December 2012
UK - Expenditure on beef in GB during the 52 week period ending 28 October 2012 has shown an increase on the corresponding period in 2011.
Total expenditure on beef and
beef products in GB showed a four per
cent increase between these periods to
£1,994 million for the year ending 28
This increase in the value of sales has come about despite a decline in the volume of beef sold on the domestic market. The increase in the value of sales has therefore come about as a result of an increase in the cost per kg of beef as opposed to an increase in sales.
The average retail price increased by seven per cent to £6.72/kg in the year ending 28 October 2012 when compared to the previous year.
It is likely that the rising cost of beef to the consumer has been responsible for the decline in volume sales which were back three per cent in the 52 weeks ending 28 October 2012 compared to the previous year.
This drop in volume sales has resulted in a three per cent drop in the average weight purchased to 13kg/per head. The 52 week penetration figures indicate that 86.6 per cent of GB households purchased beef at some point in the last 52 weeks. This is back one per cent on the previous year.
While all major beef cuts have shown a decline in volume sales between the two periods there has been a variation in the performance of particular cuts of beef. For example sales of beef roasting joints experienced a 13 per cent decline in sales year on year, sales of frying and grilling steaks were back 7.6 per cent and sales of stewing steak were back 3.3 per cent.
Sales of beef mince showed the lowest level of decline with a 3.2 per cent drop in sales. However while beef sales over the 52 weeks have shown a decline for the major cuts there has been an increase in the sale of beef marinades which sold an additional 9,279 tonne and in doing so increased its volume market share from 1.9 per cent to 5.1 per cent.
The lower value of these products however has meant the additional sales have had little impact on the total spend on beef. On a more promising note stronger beef sales over the four weeks ending 28 October have led to a slight increase in volume purchases when compared to the same period in 2011 (+1 per cent) as outlined in Figure 1.
The six per cent
increase in the average price of beef to
£6.89/kg during this period has driven
an increase in the expenditure on beef
by seven per cent on the corresponding
period in 2011 (Figure 2).
However as with the 52 week data there has been a variance in how sales of particular cuts have performed. Sales of beef roasting joints during the four week period showed a strong increase of 13.1 per cent year on year while sales of beef mince were up 4.1 per cent on the same period in 2011.
In contrast sales of stewing steak were down four per cent while sales of frying and grilling steaks were back 4.4 per cent when comparing the two periods.