UK Beef Supply Tightens

Beef production is declining in the United Kingdom, the European Union’s largest producer. The number of cattle slaughtered in the UK during June was 7% fewer than in the prior month. Average carcass weight of steers slaughtered in June also fell by 1% to 369 kg/tonne. However, EU beef exports rose 3% y/y in May, despite EU beef and veal consumption projected to be roughly flat in 2017/18. UK producer prices are 3% higher than a year ago as domestic supplies remain tight. A weaker sterling is making cattle imports more expensive for UK producers, while also boosting beef exports.