Own-label (also known as value tier) items have shown strong performance as trading down continues, with these products often being the cheapest items in supermarkets.

Value tier products make up only a small part of red meat and dairy volumes, at 7.7% (Kantar, 52 w/e 06 August) and 2.4% respectively (Nielsen, 52 w/e 12 August 2023). Despite this, value tier volumes have grown massively in both categories, up by 35.6% year-on-year (YoY) for red meat and an impressive 47.9% for dairy over the same period.

Mince was high on the list with sales volumes growing by 179.8% YoY, and milk and cheese value products also performed well, with volumes up by 56.3% and 56.7% respectively (Kantar, 52 w/e 06 August).

Tom Price, AHDB trainee analyst, said this YoY growth is due to consumers looking to cut back on spending as prices continue to rise.

“Price has become more important to consumers, however the data indicates that consumers do not want to fully remove their favourite meat and dairy products from their diet, but instead want to save money by purchasing value tier versions.

“By expanding the number of products on offer in the value tier and making sure this offering is tailored towards staples like mince, sausages and cheese, there is an opportunity to further expand retail sales of red meat and dairy.”

He pointed out not all supermarkets currently have a value tier range on offer, and adopting such products has potential to attract more shoppers.

“Adequately advertising these value tier ranges in supermarkets and communicating their in-store location to consumers will then ensure value tier products can be found easily,” he suggested.

Even when shopping value tier ranges, consumers still care about quality and where their food comes from, Mr Price noted.

“Shopper focus has shifted away from just low prices, and instead towards value for money and product satisfaction.

“Campaigns such as AHDB’s ‘We Eat Balanced’ messaging help to highlight the exceptional taste and quality of British meat and dairy, and will encourage repeat customers in both premium and value ranges,” he concluded.

The post Own-label meat and dairy sales soar as price becomes more important than ever appeared first on Farmers Guide.

Guy Singh-Watson, founder of Riverford Organic, urged the government and supermarkets to treat farmers fairly.

The campaign is urging the leading ‘Big Six’ supermarkets to adopt fairer principles for farmers and is supported by many notable figures, including Dragon’s Den star Deborah Meaden, chef Rick Stein and wildlife TV presenter Chris Packham.

It comes as almost half (49%) of British fruit and vegetable farmers say it’s likely they will go out of business in the next 12 months, and many blame supermarkets and their buyers as a leading threat to their livelihoods, according to new research by organic veg box company Riverford.

Supermarkets and their buyers are accused of not paying on time, pursuing cheaper food alternatives from overseas, and cancelling or changing orders at the last minute, with farmers also criticising fruit and veg specifications for being too hard and complex.

Three quarters (75%) surveyed say the behaviour of supermarkets is a leading concern within the industry.

According to the research, one in five farmers (22%) say they have suffered a wasted crop due to cancelled orders from supermarkets, 29% have also received a cancelled order with no explanation and just under a third (29%) have seen supermarkets failing to pay them within 30 days.

However, the majority of farmers agreed it would have a positive impact if buyers paid the amount initially agreed, did not then slash prices after the initial agreement, and bought everything they committed to buy.

Guy Singh-Watson, founder of Riverford Organic, said: “British Agriculture is on its knees, and that’s why most small family farms think that they’re not going to be in business in the next generation.

“Is that what we want from our countryside? Is that what we want from our food system? Is that what we want from farmers? Farmers need to be treated fairly; they need some commitment from supermarkets.”

Open letter highlights urgent need for change

As part of the campaign, Riverford wrote an open letter to the CEOs of the ‘Big Six’, highlighting the urgent need for change to save struggling British farms.

The letter has been signed by over 100 leading figures, with supporters including industry bodies like Sustain and The Soil Association, as well as a host of prominent names comprising MPs, business leaders, celebrities and notable farming figures.

Labelling supermarket buying practices as ‘imbalanced, short term and wasteful’, the letter is calling on the ‘Big Six’ to commit to Riverford’s Fair to Farmers charter principles:

• Pay what you agreed to pay.
• Buy what you committed to buy
• Agree on fair specifications
• Commit for the long term
• Pay on time

The charter was devised by founder Guy Singh-Watson to lay down ethical business practices among growers and farmers, to ensure a fair deal is always achieved.

“Sustainable trading relationships are based on co-operation, good communication and trust as much as competition,” he said. “A brutal, short-term focus on annual price negotiations is supporting supermarket margins while destroying British farming along with the landscape, wildlife and rural communities it once supported.

“Given the information, all polls show the British public wants better and would even pay a little more if they knew it went to support better farming.”

While suppermarkets are reporting record profits, hard-working farmers get paid pennies for their produce.

Riverford’s new research also showed farmers are currently being squeezed from all angles, with 67% of fruit and veg farmers agreeing that making a living through farming has never been harder, and 61% worried that they won’t have a farm to pass on to future generations.

Over half of horticultural farmers also believe farming sits on the bottom of the government’s list of priorities, with risks in future government support (28%), alongside crops failing due to weather extremes (29%), being among the top three concerns facing the industry.

Riverford has stressed that current government policies in place to protect farmers from supermarket buying behaviour are inadequate and rarely enforced. Fruit and veg farmers are in agreement, with 69% saying tougher regulations are required to redress the imbalance of power between farmers and the supermarkets and their buyers.

To save Britain’s broken food system from further collapse, Riverford has also launched a petition asking the government to reform the Grocery Supply Code of Practice (GSCP) and ensure farmers are protected from unfair behaviour.

To sign the petition, which gathered over 10,000 signatures within the first day of launching, visit: https://petition.parliament.uk/petitions/643216

“Why are we growing all this food – if we can’t afford to feed ourselves?”

Tessa Elliott and her family grow potatoes for supermarkets on their 500-acre arable farm in Haverfordwest, Pembrokeshire.

Tessa Elliott’s family have farmed 500 acres of arable land in Haverfordwest, Pembrokeshire, for nearly 50 years. She currently grows potatoes for leading supermarkets and previously supplied leeks, all through a third-party supplier.

However, one summer evening led her to question the integrity of a local ‘eco-friendly’ supermarket, upon discovering that all of their potatoes were imports from Egypt or Israel.

After contacting the retailer’s press office, their explanation left her even more baffled, which cited the reason for the choice of potatoes being the intention to supply customers with ‘fresh’ produce.

“I said ‘well they can’t be fresh if they’ve come from Egypt – there are miles of fresh potatoes on your doorstep’.”

Tessa and her brother Patrick work on the farm with their parents Fiona and Ian, who still regularly works extremely long hours at the age of 69, to keep the farm going.

“My dad is nearly 70 years old and doing hours that you wouldn’t even get an 18-year-old doing now and it’s at what cost? Where’s the cut-off point? Farms are going out of business because they can’t afford to grow bigger which is what businesses need to do to survive.”

She knows business can be unfair but asks herself how supermarkets would react if shoppers treated them like stores treat farmers.

“We don’t receive payment from the supermarkets until six weeks after they have sold our produce,” Tessa said. “Consumers don’t go to supermarkets and say they’ll pay for their shopping in six weeks. Supermarkets want the money there and then and there. There’s no ‘buy now pay later’ in a supermarket.

“The problem is that the supermarkets have always got the upper hand, and unfortunately, we need them to sell to, otherwise what are we growing for – they know that. There’s a link in the chain where it’s all gone wrong.”

She said if prices her family currently receives for their produce don’t go up or input costs don’t come down, the farm will have to close its gates for good.

“And it’s scary because then we have to ask ourselves ‘what is it all for then’? Why are we putting in all these hours and doing what we love – ultimately to grow a premium potato to put on people’s plates all year round – if we can’t afford to feed ourselves?”

The post UK fruit and veg growers press supermarkets to #GetFairAboutFarming appeared first on Farmers Guide.

According to data insights company Kantar, the market value of primary pork has grown 10.2% year-on-year (YOY) to £800m, which is 1.8 percentage points ahead of the YOY increase for total grocery over the same period.

This value growth is driven by inflation, as average primary pork prices rose by 15.7% YOY to £5.71/kg but volumes sit 4.7% lower over the same period, continuing the 52 w/e declines seen since November.

Whilst new shoppers are typically younger, the majority of sales come from older shoppers, so it remains key to mobilise repeat consumers, AHDB has said.

Due to the large number of processed pork options, primary pork makes up only 14.9% of total pork volumes. However, it is still one of the cheapest proteins, coming in at £1.50/kg cheaper than the average for primary meat, fish and poultry (mfp).

Despite its affordability, figures show the retail performance of primary pork is beginning to slip, and its YOY volume decline now outpace beef.

AHDB trainee analyst Tom Price said: “This comes as the cost-of-living crisis causes consumers to trade down to cheaper products like mince and sausages, and cheaper proteins like chicken, as well as limiting their meat consumption altogether in an attempt to save money.

“Consumers switching to primary chicken accounted for 26.2% of all primary pork volume losses YOY, as chicken is the cheapest protein on the market at £4.81/kg.”

He said promoting pork as a component of tasty and affordable meals could help boost sales, which is a key point in AHDB’s Mix up Midweek campaign.

However, the lower price point of pork compared to other red meats still stands it in a good position within the market, and declines in retail volume when compared to beef and lamb could be limited over the coming months.

As the cost-of-living crisis continues into the festive period, there is also a likelihood for increased demand for pork at Christmas as pork roasting joints are approximately 50% cheaper than that of beef and lamb.

“Retailers looking to boost primary pork sales could also promote the health credentials of pork through highlighting how pork is high in protein, a source of zinc and B vitamins including B12,” Mr Price added. “This could encourage consumers to purchase pork, especially when combined with messaging around primary pork’s affordability.”

The post Pork retail performance falls but prices stay the course appeared first on Farmers Guide.

Running from 8^th September to 22^nd October, We Eat Balanced not only aims to promote consumer awareness but also seeks to foster long-term positive attitudes towards naturally produced British red meat and dairy.

AHDB had previously been restricted from using ‘British’ as the primary message because of EU State Aid Rules. However, guidance on the new UK rules, as part of The Subsidy Control Act, was published earlier this year, opening the avenue for this change.

Future use of the term and the Union Flag will also be reflected in the Love Pork campaigns, including Feed the Family for Less. This opportunity allows AHDB to better showcase its support to levy payers and levy spend on promotional activities.

“By incorporating the ‘British’ message, which we know is important to consumers, our aim is to highlight the exceptional taste and quality of our home-grown meat and dairy, whilst advocating its role in a nutritionally balanced and sustainable diet,” said AHDB’s director of marketing, Liam Byrne.

“We believe that through these efforts we can foster a strong and enduring connection between consumers and our British farmers, who are so passionate about providing quality and sustainable food at every step of its journey, from field to fork.”

Dairy farmer Charles Goadby was excited to learn about this latest change to how AHDB will be promoting UK produce going forward.

He commented: “It is good to learn that ‘British’ will be included in AHDB’s marketing campaigns and exports activities going forward. We need to continue sharing the positive stories of British farming through various channels.”

Similarly to previous years, the We Eat Balanced campaign will educate consumers on the various nutritional benefits of red meat and dairy, such as vitamin B12, an essential nutrient not naturally present in foods of plant origin.

The campaign will feature on social media, in newspapers, video on demand and in the stores of eight major supermarkets, where on-pack stickers will include links to direct shoppers to healthy meat and dairy recipes.

We Eat Balanced forms part of AHDB’s work in promoting and defending the reputation of red meat and dairy, as well as challenging misinformation.

Levy payers and farming influencers are encouraged to engage with the campaign through the website weeatbalanced.co.uk, as well as resources, assets, merchandise, Instagram and Facebook.

The post We Eat Balanced campaign returns with spotlight on ‘British’ meat and dairy appeared first on Farmers Guide.

Supermarkets are being urged to support British farmers by creating a tab that collates produce from farmers across Great Britain and Northern Ireland on their online shops.

‘By a click of a mouse, many supermarkets can achieve this,’ reads an open letter by Dr Luke Evans, Conservative MP for Bosworth. The letter has been co-signed by 110 MPs.

The move would give consumers greater power in their choices, whilst recognising British farmers and putting supermarkets as the critical link between the two, MPs say.

‘All we’re asking is that on your online stores, [British produce is] collated so that customers who want to eat British produce and support our nation’s farmers can do so quickly and easier,’ the letter continues.

‘We hear time and time again from farmers themselves that the best way to support them is to buy British produce. By signposting shoppers, you give consumers who want to supportr our nation’s farmers even greater choice.

‘British farmers work hard all year round to ensure our nation’s food security, are crucial in supporting strong local economies and have been instrumental in preserving and protecting our environment. Eating food produced in the UK also drastically cuts down on the carbon produced when importing goods from elsewhere.’

The letter comes at a time of ongoing concern about high costs for farmers across the board, alongside fears that post-Brexit free trade deals could undercut British farmers with cheap imports.

The post MPs press supermarkets for a ‘Buy British’ button online appeared first on Farmers Guide.

The company reported a total net revenue of $102.1 million for the three months to the end of June, down by 30.5% compared to the same period last year. The declining trend has continued from the first quarter of 2023, when profits were down 15.7% year-on-year.

Shares of the company also fell by nearly 12% and are currently worth $15 each, well below its initial $25 price.

In its most recent financial report, the company said its sales had been affected by ‘softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession’.

Beyond Meat president and CEO Ethan Brown believes sales have also been impacted by increased concern from consumers over the health benefits of plant-based products.

“This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats,” he told investors in an earnings call.

In response, the company is ramping up its marketing strategy to highlight the health credentials of its plant-based products and change perceptions around the manufacturing process, which some consumers deem excessive.

Beyond Meat, which makes plant-based burgers, sausages and nuggets, has also been experimenting with price cuts to incentivise more shoppers to buy into its offering by lowering the price point of its core products to match their animal protein equivalents.

While the company reported lower materials and logistics costs this quarter, it said these were offset by higher manufacturing costs as the energy crisis continues. To make up for rapidly falling sales figures, the firm had cut almost a fifth of its workforce (nearly 200 jobs) last year, saving around $39m (£30.6m) in operating costs.

Other vegan food companies have encountered similar challenges and have had to let staff go in the past year, with Leeds-based supplier Meatless Farm stopping trading altogether and sausage producer Heck reducing its vegan range.

Earlier this year, popular smoothie brand innocent Drinks has also announced it was cancelling its vegan range of coconut, almond and hazelnut-flavoured drinks due to a continued lack of interest from customers.

Similar trends have been reported in the US plant-based meat sector, with major supplier Impossible Foods revealing plans to cut a fifth of its workforce at the start of this year, after slashing nearly 50 jobs in November 2022 as part of a restructuring exercise under new CEO Peter McGuinness.

Despite missing financial targets in the first half of 2023, Beyond Meat CEO Ethan Brown is expecting a steady return to year-on-year growth in the third and fourth quarters as the company moves to reduce its cash consumption and increase gross margins.

Annual revenue is now forecast to be in the range of $360m to $380m, down from previous estimates as high as $415m.

The post Beyond Meat revenue falls by 30% due to ‘softer demand’ for plant-based products appeared first on Farmers Guide.

Gipsy Hill’s carbon negative Swell lager has a footprint of -40gCO2e.

The brewery’s latest Swell Lager and Trail Pale beers have carbon footprints of -40gCO2e and -30gCO2e per pint respectively, whereas a typical pint of beer emits at least 350g of CO2, with many craft IPAs starting at 500gCO2e.

The new carbon-conscious beer range is produced using barley from a regenerative farm and hops which have been recaptured and reused.

It marks the first time in history that a brewery has produced carbon-negative beer without using carbon offsetting, a controversial process where businesses reduce the carbon footprint of products through activities unrelated to their production – for example planting trees in another part of the world.

The regenerative barley used by the brewery is sourced exclusively from Wildfarmed, which works with farmers to implement regenerative practices such as intercropping, cover cropping, and reduced tillage to improve soil health, reduce erosion and sequester carbon.

These practises mean that the resulting barley sequesters more carbon in the soil than it releases into the atmosphere.

Recaptured hops are also used to keep the beers environmentally-friendly. These are the hop material that has been removed after fermentation from a previous batch of beer and then reused to bitter and flavour a new batch of beer. They would usually be thrown away in a typical brewing process, meaning greenhouse gas emissions from their use are zero.

The complete carbon lifecycle of the beers has been independently analysed by Zevero, a specialist carbon accounting firm. The study accounted for the full life cycle of the products, from the growing of the ingredients to the end of life of packaging, meaning punters can enjoy a pint knowing it has left the environment in a better state than it was.

Sam McMeeken, co-founder of Gipsy Hill Brewery, said: “Making great quality beer has been our obsession for 10 years, but I felt we had to find a way to do it more sustainably.

“Great beer should be guilt-free, and our new Trail Pale and Swell Lager mean that for the first time, our drinkers can enjoy a pint safe in the knowledge it’s actively improving the environment and helping solve our climate crisis.

“By truly embedding sustainability into our brewing process, rather than simply offsetting emissions, we have created a blueprint for sustainable beer range, but the wider food and drink industry.”

Ben Richardson, co-founder and CEO at Zevero, added: “The work Gipsy Hill is doing with their focus on regenerative agriculture is not only exciting for this range, but should also be seen as a model for the whole industry to move away from the reliance on offsets in climate programmes.”

The beers are currently available in a number of locations, including Gipsy Hill’s taproom and sister bar in South London, The Understudy at the National Theatre, Kerb Street food markets, Seven Dials Market and a selection of Youngs venues around the UK.

The post Regen barley makes world’s first offset-free carbon negative beer appeared first on Farmers Guide.

In the study, nearly three in five consumers whose household finances have worsened as a result of the crisis indicated they are going to spend less on eating out. However, despite financial constraints, shoppers are still looking to treat themselves, with 55% agreeing they would be willing to pay extra for better quality meat.

This is known as the ‘Lipstick Effect’, the theory that when faced with an economic crisis, consumers will be more willing to buy affordable treats and indulge in guilty pleasures, albeit less often.

Kim Heath, AHDB senior retail insight manager, said: “When treating OOH [out of home], we know consumers favour meat-based dishes such as lamb, steaks, and burgers, and what is evident in recent demand data is that some of these areas are actually seeing some positive trade up within retail, bucking the overall grocery and total meat, fish and poultry (MFP) trend.”

Within beef, steaks overall are seeing volume declines of -7.3%, driven by all steak cuts. However, a deeper delve into the data reveals that among the cheapest steak cut, rump (average price of £15.40 per kg versus total steaks at £16.37 per kg), the premium tier has grown by 0.2%, stealing 0.5% share of the rump category.

Moreover, some shoppers who have in the past purchased standard sirloin steaks and premium fillet steaks, both at higher cost, are now buying premium rump steaks instead. Therefore, among some consumers, buying premium steak cuts at the lower end of the price range are a way to save money while staying in the category.

Within pork, premium tier growth is seen in several areas, specifically shoulder roasting, chops, belly, and mince. Premium pork cuts may therefore offer an opportunity for those who feel the need to trade down protein to save money but still want to deliver a treaty meal opportunity.

Within beef, pork and lamb, a positive trend is seen for premium added-value offerings. In the sous vide category, the premium beef tier has seen volume growth of 17.9%, with pork up by 63.7% and lamb by 12.0%.

Meanwhile, a lamb premium tier growth of 37.4% is also seen for marinades, stealing just over 7% volume share of the lamb marinade category.

Ms Heath added: “While current financial difficulties favour the lower priced tiers, the ‘Lipstick Effect’ still provides opportunities for treating meals. Capitalising on these occasions is vital, with treaty red meat meal inspiration and reassurance around premium quality meat at point of purchase.”

The full research can be found here.

The post Consumers willing to pay extra for affordable premium meat, research shows appeared first on Farmers Guide.

The research involved an online survey of over 2,000 consumers, who were asked about the key buying motivations for beef and lamb. The aim was to explore key motivations when buying red meat across the Middle East, including the UAE, Saudi Arabia and Kuwait.

The work is part of a global study and builds on from previous studies across North America, Southeast Asia and the EU.

Quality was consistently high across all the regions, followed by taste and price value in Europe and North America. Meanwhile, food safety was a top consideration for consumers in Southeast Asia, with the Middle East scoring highly on halal assurance.

In terms of quality, consumers in the Middle East regarded food safety, taste and freshness as key factors for beef and lamb purchases. Moreover, there was particular interest among consumers in the animal slaughter method and how the meat was processed.

Over half (56%) of respondents agreed that “knowing how the animal was slaughtered” was important to them, with 47% stating that “knowing how the meat was processed” was important.

The research identified how critical halal assurance is to consumers in the Middle East, with 76% of consumers agreeing that they trust shops will only sell halal meat. Just under half do not tend to look at the details of the halal certification on packaging because of that trust in shops.

The findings also highlighted that 76% of consumers believe different countries will have different halal standards. As a result, if the source market is prominent on pack, it is critical consumers have trust in halal production standards of that exporting market.

Steven Evans, AHDB lead consumer insight manager, said: “The research across other regions highlighted the importance that exporters harness the strengths of British red meat in their target markets.

“Finding the right messages to amplify the products and justify any premium price positioning can unlock future growth opportunities and further place British meat exporters in a strong position versus competitors.”

Production standards of British beef and lamb are currently well regarded in the Middle East, with 60% of consumers agreeing that standards for red meat are higher in the UK than in other countries. In contrast, only 47% agreed with the same statement in Southeast Asia, and 37% in North America.

When looking at the barriers to purchasing British beef and lamb, price featured heavily. This reinforces the importance of justifying any price premium by communicating around quality, halal assurance and food safety messaging.

The full research on red meat buying behaviours in the Middle East can be found here.

The post Study highlights appetite for British red meat in the Middle East market appeared first on Farmers Guide.

Forecasts for the year ahead have revealed an expected growth of 1.8% for global meat consumption and 2.53% for fresh dairy consumption, meaning it’s a good time for UK food exporters to ramp up business.

Following UK red meat exports hitting record levels in 2022 with a value of £1.7 billion and the dairy sector following close behind, AHDB chair Nicholas Saphir said it is imperative businesses build on this success.

Speaking at the AHDB Export Conference at Butchers’ Hall in London, he remarked: “Our exporters and colleagues in Government should be congratulated on the fabulous job done in driving export growth for UK agri-food which is reflected in the figures from 2022 that speak for themselves.

“It is, however, imperative to maintain the momentum and build on this success. With the anticipated growth in global meat and dairy consumption, now is a pivotal moment for more UK exporters to seize on the export opportunities presented.”

Mr Saphir welcomed the government’s pledge at the recent Farm to Fork summit to boost the UK food sector by expanding its programme of global trade shows and missions, provide £1.6 million funding to the GREAT food and drink campaign and support the dairy sector’s export ambitions.

The event also provided a platform for AHDB to unveil its new Beyond Borders strategy, aimed at delivering enhanced services to help more exporters maximise the global potential for high-quality domestic produce.

Beyond Borders sets out plans to encourage more businesses to develop their export potential with the help of enhanced AHDB services including bespoke training and advice and industry-leading marketing support.

This will include providing tools, information and advice and practical assistance on exporting, connecting UK businesses to overseas buyers and growing the reputation of our levy payer products.

Mr Saphir said: “A sustained collaborative effort between industry and Government, underpinned with AHDB’s support including market and consumer insight, is key to helping our exporters build on the successes already achieved.

“Our strategic approach set out in Beyond Borders is very much aimed at helping our levy payers succeed in this and to encourage more businesses to look at exporting. Not only will it help levy payers improve overall returns, but it will also support the UK Government’s wider ambition to become a ‘Great Trading Nation’.

Mr Saphir added AHDB is looking forward to working collaboratively with the government to deliver enhanced support services and help exporters realise their ambitions.

The post Meat and dairy businesses urged to seize on growing export opportunities appeared first on Farmers Guide.