The National Beef Association has called on retailers and government to act as beef prices continue to fall.

Beef prices have now dropped to a five year low, though the retail price has remained relatively static, with a 1-2% increase. This was the bleak announcement made by industry group the British Beef Association (NBA) on Tuesday.

Going into the background of the sliding prices, NBA Chief Executive Chris Mallon said, “I keep getting told there is a lack of retail demand and because of that the processors have to reduce the price the farmer gets for his beef.

“The idea of price fatigue amongst consumers is often mentioned: beef is just too expensive. This would hold more water if retail price had moved downwards with the cattle price, but it has not.”

“The truth is retail price has moved up 1%, whilst on farm prices have been slowly, week by week, coming back to a point where farmers are getting around 46% or less of retail price.  We believe there is room for retailers to bring back shelf price and stimulate sales.”

Mallon and the NBA said marketing of beef has been “abysmal or non-existent” and claimed that “In recent years beef promotion has been obvious by its absence.”

The Association is calling on levy board AHDB to allocate a share of the levy to advertising and promotion, but said supermarkets also have a responsibility and a duty of care to their suppliers.

Last September, the government approved a £1.6 million campaign to promote British beef and lamb, after a drawn-out spending row between farmers, the levy board and government ministers, who did not initially sign off on the publicity campaign (it had to be re-submitted before finally being approved in September).

Turning to retailers, NBA’s Chris Mallon said producers need a fairer share of the retail price, and that pressure on producers from retailers is hurting farm businesses. He said, “Family farms do not have the ability to continue to subsidise falling supermarket profits any longer.”