Beef and Lamb Watch August 2019

AHDB Beef and Lamb watch_61280

British facings refer to the percentage of products available on the shelf to consumers that originate from Britain.

The NFU welcomes those retailers who have stood by their public commitments in sourcing 100% of their beef and lamb from British farmers.

With the threat of a no-deal increasing; retailers must do all they can to show their support for the British beef and lamb sector.  Lamb is facing significant tariff implications which could decimate the sector.  The retail sector must look at how they can introduce supply chains which can bring stability to their supplying farmers. 

Beef

Aldi, Co-op, M&S, Morrison’s and Waitrose continue to stand by their 100% British commitment.  This continued support for British beef is welcomed by the NFU, and again demonstrates their commitments to #backbritishfarming

It is also pleasing to see Asda increase their percentage of British facings by 24% compared to August 2018.  Since 2017, this is the highest percentage of British facings for Asda.  Tesco also increased their British beef facings by 9% compared to 2018 and by 11% since June 2019. 

Along with this, the total beef facings are up 2% since June 2019 and up 5% year on year.  This is welcome news; allowing for more British beef available for consumers to buy, given the current situation regarding the beef price.     

In such a critical time for the British beef industry, due to the rapidly falling beef price, the NFU continues to call on the whole supply chain including farmers, processors, the food industry, Defra and AHDB for the need to work together to find solutions to this crisis. This includes short term promotions, with long term investment in product innovation.

We have seen all of the retailers during the summer BBQ season, driving short term promotional and marketing activity of British beef products, to encourage and stimulate demand within the category.  However, sales have struggled compared to the highs of last year, due to the lack of national events such as the Football World Cup, Royal Wedding and the heatwave of 2018.

In the long term, the NFU are encouraging the whole industry to find opportunities for new product innovation to ensure consumers continue to be excited about British beef products.  We know consumers eating habits are changing; they are looking for products which are easy to prepare and quick to cook.  There is also a drive for healthier eating, and so British beef has an opportunity to play an exciting role in this changing dietary landscape and ensure consumers continue to look for British Red Tractor Assured beef.

The NFU will continue discussing these opportunities with the industry.

Lamb

Morrison’s, Aldi and the Co-op continue to Back British Farming through their commitment to source 100% British lamb, year around.

Other retailers run a “best in season” policy meaning they switch over from New Zealand lamb to British when in season. It is worth noting, M&S are 100% British lamb from Jun – Dec, however due to dual origin labelling on 6 added value lines the origin of the lamb was not clear on pack which reduced their facing percentage to 88%.  Dual origin is used to manage the shoulder period between the UK and NZ seasons.  M&S have confirmed that they continue to be 100% British lamb between June - Dec and will be removing NZ from these lines from Jan 2020.     

AHDB’s research is showing an increase in Tesco’s British lamb facings, which are up 12% on last year.  This is welcome news, and we would like to continue to see Tesco develop their lamb sourcing to Back British Farming further.

It is disappointing to some large declines of British lamb facings in this month’s dataset.  We are in the midst of prime British lamb season with good availability.  Now should be the time when retailers show their support for British farmers.

It is also a time when the industry has invested £1.4m into the marketing campaign “Love Lamb” which aims to highlight to consumers the great quality attributes of British lamb.  Tesco, Asda, Sainsburys, Morrison’s, Co-op, Aldi, Lidl have all shown their supported this year’s campaign, which is welcome. 

We will continue to call out those retailers who are unclear about their lamb sourcing policies, and will encourage the retail sector to find opportunities to Back British Farming where possible.