AIMS meat and poultry inflation report reveals average prices were unchanged in May

According to AIMS head of communications Tony Goodger, for the first time since the monthly inflation report was published, the average price across the four meat categories remained unchanged in May. The figures suggest challenging conditions in the foodservice sector may be driving down retail meat prices for consumers.

The inflation report takes data from the Agriculture and Horticulture Development Board (AHDB) weekly supermarket price reports for beef, lamb and pork, and AIMS’ own data tracking for poultry prices, which showed overall prices for beef (-0.5%) and pork (-1.27%) have fallen, with lamb (0.63%) just nudging upwards. Driven by an 8.9% increase in diced chicken breast, the average price for chicken was up by 1.95%.

Recently published ONS figures for April showed that annual CPI has risen by 2.8%, its lowest level for 13 months.

Foodservice sector struggles impact retail meat pricing

Goodger commented: “There has been a considerable slowdown in year-on-year meat and poultry price inflation. For May, the average across the four surveyed categories stands as 2.76%, which is very close to the most recent ONS figure. However, both beef (+4.57%) and lamb (+4.09%) did continue to be more expensive than in April.

“However, both rump and sirloin steaks are now cheaper than they were twelve months ago almost certainly due to lower demand as a result of a challenging business environment in the out-of-home sector resulting in higher supply within domestic retail channels.”

AIMS noted that “considerable falls” in the average price for pork chops and loin steaks have resulted in the average price for the eight pork cuts surveyed contributing to an overall drop of -2.64%, while similar falls in the price of chicken breast potions and thighs, both on the bone and as fillets, have seen the average price of chicken fall by -1.26%.

“I believe that lower demand from the broader out-of-home market … is generating oversupply into the multiple retail sector and, in turn, allowing them to drive further price reductions for budget-conscious consumers.”

Tony Goodger, AIMS

Goodger continued: “I believe that lower demand from the broader out-of-home market, especially within school meals and care settings, coupled with a combination of consumers switching to cheaper sharing dishes such as pizza or lower-protein-content meals such as pasta at pubs and restaurants is generating oversupply into the multiple retail sector and, in turn, allowing them to drive further price reductions for budget-conscious consumers.

“While bundle deals have never really gone away the frequency of their use with marketing campaigns and breath of products to choose from does appear to have increased and I fully believe that consumers who are prepared to split their shop across two or more supermarkets can find some great value in the meat and poultry sectors.”