Business and Policy June 2026 – Beef

Continued decline 

Beef prices continue a downwards trajectory, with many finishers now facing unsustainable losses on finished cattle. Many finishers have seen a fall of approximately £240 since February 2026. The beef price has dropped by more than 20p/kg in the past month. Those finishers who bought store cattle last year when prices were at their peak are suffering most, with many now faced with losses of up to £400 per head, as finished prices drop to below £6/kg dwt.  

For the week ending 23rd May AHDB reported prices in Scotland for R4L grade steers at 599p/kg dwt (-14p/kg dwt from the week previous). However, reports point towards a further drop in prices with 585p/kg being quoted at the time of writing, with reports also highlighting differences to base prices across Scottish abattoirs for the same carcase specification.  

Cull cow trade has also fallen, though not at the levels seen for prime cattle. At the end of May cull cow values were around 530p/kg/dwt, back 30p/kg (approximately £120/head over the past 6 months).   

Outlook for June  

It is a difficult time for producers currently, with increased input costs coinciding with fluctuations in beef prices posing a significant risk to cashflows. Typically beef prices in June tend to be lower. QMS data for Scotland highlighted that over the past four years, June prices for R4L steers have been fairly static ranging from a 9.5p/kg rise in 2022 to a 23.5p/kg fall last year. Across the four-year period, the average June movement was a fall of around 5.9p/kg in both the GB and Scottish series. With plenty of fat cattle and young bulls available in the short term, coupled with reduced consumer demand due to high retail beef prices, it is unlikely that prices will increase in the coming weeks.   

Consumers still not buying  

Despite UK supplies remaining tight, reduced consumer demand is largely recognised as a contributing factor to the continued drop in deadweight prices since mid-February. Consumers are not buying beef at current retail prices which is affecting buying behaviours and the volume of beef sold as shoppers opt instead for cheaper proteins such as chicken. The latest retail figures from AHDB show total beef retail volumes down 6.2% in the 12 weeks ending 19th April 2026, while average prices were up 14.7%.  

UK supermarkets have yet to pass on ‘beef producer price cuts’ to increase sales. Producers will be hoping that the FIFA World Cup taking place from mid-June to mid-July will boost beef sales.  

Fast food outlets are now also reporting less consumer demand for beef. This is not helped by the increased fuel prices which has contributed to a significant reported fall in car numbers through drive thrus. McDonalds latest campaign across Ireland and the UK urges customers to “Betray Your Go‑To” by swapping their usual “Big Mac” beef burger for a McCrispy chicken. While this is perceived as a playful break with routine in reality, it is a margin‑protection strategy. 

Rise of weight loss drugs

Weak consumer demand is not helped by the increasing trend of weight loss drugs, reducing appetites and changing eating habits. This is resulting in consumers eating less and looking for smaller portions. In response to the rapid rise in weight loss drugs several retailers are offering small sized portions. Data from AHDB suggests that while there are challenges with food consumption being lower, there are opportunities for red meat namely lean cuts.   

Store cattle  

Unsurprisingly, the drop in finished prices has had a knock-on effect on store cattle trade. Heavier, shorter-term stores have seen a significant fall in values due to the pressures faced by finishers. Despite fluctuations in the finished trade, good quality suckler-bred younger stores and grazing cattle are still achieving strong prices, largely due to supply and demand. 

Sarah Balfour, sarah.balfour@sac.co.uk

 

Scotland prime cattle prices (p/kg dwt) (Source: drawn from AHDB and IAAS data)

Week Ending	R4L Steers (p/kg dwt)			-U4L Steers			Young Bulls -U3L		Cull cows
		Change on week	Diff over North Eng.		Change on week	Diff over North Eng.		Diff over North Eng.	R4L	-O3L
2-May-26	631.8	-3.0	-3.7	619.9	-10.1	-8.3	618.7	5.4	551.4	527.6
9-May-26	617.5	-14.3	-9.1	609.6	-10.3	-11.3	605.6	1.3	543.6	516.3
16-May-26	613.7	-3.8	-3.3	598.5	-11.1	-15.0	594.6	-7.9	532.4	506.1
23-May-26	599.7	-14.0	-8.7	590.4	-8.1	-21.6	581.0	-7.0	529.8	497.9