UK food businesses are under pressure as meat prices continue to rise, driven by tightening supply and heightened demand. Butchers and restaurants, particularly in Derby, report some of the toughest trading conditions since opening.
Industry data reveals a sharp increase in costs across beef and lamb. The Association of Independent Meat Suppliers notes a 20.96% year-on-year rise in beef prices and a 19.92% increase for lamb. The Agriculture and Horticulture Development Board (AHDB) reports that a 350kg prime cattle carcass now costs £738 more on average than the previous year.
Reduced supply is a key factor. The Department of Environment, Food & Rural Affairs (Defra) shows a 4% year-on-year drop in cattle and calf slaughter volumes between January and April 2025.
This supply strain is occurring against a backdrop of wider inflation. The British Retail Consortium reports UK food prices rose 2.8% year-on-year in May, primarily driven by increases in beef and fresh produce.
For small operators, this translates into margin pressures and operational adjustments. Butchers report price hikes of up to 30% for mince alone. Meanwhile, restaurants are adopting reservation-only models in a bid to contain costs and manage waste.
The government has reaffirmed its support for UK farmers, allocating £5 billion towards sustainable food production and appointing Baroness Minette Batters to lead reforms focused on boosting farmer profitability.