How meat processors can optimise pricing and supply with data-driven procurement and production tools

The meat industry operates within a volatile market where pricing and supply chain stability are constant concerns. Meat processors face numerous challenges, including fluctuating livestock prices, supply shortages, and the UK's heavy reliance on meat imports. These factors impact procurement decisions, pricing strategies, and overall profitability. 

In response to these challenges, data-driven procurement and production tools have emerged as essential solutions. By leveraging data analytics, automation, and AI-driven forecasting, meat processors can enhance decision-making, mitigate risks, and ensure a more stable supply chain. This article explores how meat processors can use these tools to optimise pricing strategies, manage supply chain complexities, and improve profitability. 

The Current State of the Meat Industry Supply Chain 

The UK meat industry is currently navigating a complex landscape marked by several critical challenges: 

Livestock Shortages 

Recent data indicates a notable decline in domestic meat production. Between 2021 and 2023, the UK's production-to-supply ratio for pig meat decreased from 71% to 64%, and for poultry meat, from 93% to 82%. Earlier this year AHDB reported that, ‘reduced domestic cattle supply is expected to contribute to lower beef production levels in 2025. UK beef production is forecast to fall 5% year-on-year to 885,000 tonnes’. This reduction across meat sectors is attributed to factors such as environmental changes, disease outbreaks, and evolving farming practices. 

Global Trade Disruptions 

The UK's reliance on imported meat, particularly from the EU and South America, has been impacted by global trade challenges. Research shows that in 2023, the EU accounted for 64% of the UK's food, feed, and drink imports. However, the total volume of these imports was 6% lower than in 2018, influenced by factors like Brexit-related trade complications and increased shipping costs. 

Labour Shortages 

The meat processing sector faces significant labour challenges. A 2021 report highlighted approximately 500,000 vacancies out of 4.1 million roles in the food industry, equating to a 12.5% structural vacancy rate. This shortage is exacerbated by restrictive immigration policies and the sector's historical dependence on migrant workers. 

Rising Operational Costs 

Producers are contending with increased costs for feed, fuel, and transportation. For instance, in the first quarter of 2024, UK pig meat production declined by 2.5% compared to the same period the previous year, partly due to adverse weather affecting feed availability and costs. Furthermore, farm input costs have risen by a massive average of 44% since 2019. More broadly, farm input costs have increased by an average of 44% since 2019, affecting livestock farming across pork, poultry, and beef sectors. These cost pressures are contributing to tighter supply and increased procurement costs for meat processors downstream. 

Understanding these trends is crucial for meat processors looking to mitigate risks and maintain stable operations. Data-driven software solutions can help businesses monitor market fluctuations, anticipate supply shortages, and adjust procurement strategies accordingly. 

The Role of Data in Meat Procurement and Pricing 

Data analytics plays a crucial role in enabling meat processors to make informed procurement and pricing decisions. By integrating livestock procurement tools and real-time market analysis, processors can: 

Predict supply availability 

AI-powered tools analyse historical data, weather patterns, and market trends to forecast livestock availability and price fluctuations. 

Optimise procurement timing 

Data-driven insights help businesses determine the best times to purchase meat to avoid peak pricing periods. 

Enhance supplier negotiations 

By understanding market trends, processors can negotiate better deals with suppliers, ensuring cost efficiency. 

For example, a meat processor using predictive procurement tools may identify an upcoming decline in beef supply and adjust sourcing strategies accordingly. By securing stock in advance or diversifying supplier networks, the processor can stabilise costs and maintain steady production levels. 

Why Are Meat Prices Rising? 

At Foods Connected, we see rising meat prices, and they are not the result of a single factor, but rather the cumulative impact of supply chain vulnerabilities, economic pressures, and shifting preferences. Here are some specifics: 

Supply Chain Disruptions 

Live animal movement within the country has stayed mostly unchanged, but global supply chains have encountered many difficulties. Rising international transportation costs, shipping delays, and port congestion are putting operating pressure on meat packers, retail packers, and wholesalers who import meat cuts from abroad. Particularly for companies that depend on imported beef products, these global transportation concerns are causing processing bottlenecks and higher expenses. 

Inflation 

Economic inflation has escalated operational costs across the food industry. As of January 2025, the UK's Consumer Prices Index (CPI) reported a 3% year-on-year increase, with food prices rising by 3.3%. Notably, meat, along with bread, cereals, fish, dairy products, and beverages, experienced significant price hikes. 

Rising Labour Costs 

Meat processors are facing additional cost pressures from rising labour costs. Increases to the National Minimum Wage and ongoing labour shortages have driven up wages across processing facilities, further compounding operational expenses. Labour represents a significant portion of meat processing costs, and higher wage bills are directly impacting the price of meat products in the market. 

Consumer Demand Shifts 

Changing dietary preferences have also impacted meat prices, with red meat consumption in the UK decreasing by 17% between 2008 and 2019. The demand for premium cuts has also risen, with beef registering the most significant value gain among grocery items in 2024, with sales increasing by £242.1 million. 

Why is meat so expensive in the UK?  

Rising meat prices in the UK are largely driven by domestic cattle shortages and strong consumer demand. Retailers’ preference for British-origin meat further limits supply, intensifying competition and pushing prices higher. While imports, particularly from Ireland, continue to flow smoothly, they have not been enough to offset the pressure on domestic supply, making effective sourcing strategies vital for stability. 

Why are beef prices so high in the UK?  

Beef prices remain high due to a shortage of domestic cattle and strong consumer demand. Retailers prioritising British-origin beef further tighten supply. Although imports have risen, they have not sufficiently offset the shortfall, keeping market conditions tight and prices elevated. 

By leveraging data analytics, meat processors can better anticipate these pricing trends and adjust their strategies to remain competitive. 

Leveraging Profitability Forecasting for Meat Processors 

Profitability forecasting involves using predictive analytics to project future revenues and costs based on market trends, historical data, and real-time inputs. For meat processors, this means: 

Analysing cost structures 

Identifying key cost drivers, such as feed and transportation expenses, to manage pricing effectively. 

Adjusting pricing strategies 

Forecasting tools help businesses anticipate cost fluctuations and adjust pricing models accordingly. 

Improving financial stability 

By predicting market trends, processors can develop long-term pricing strategies to mitigate losses.  For example, a meat processor using AI-driven profitability forecasting can adjust its retail pricing based on projected beef shortages. By doing so, the company remains profitable while maintaining competitive pricing for customers. 

Implementing Data-Driven Procurement and Production Tools 

To fully optimise procurement and production processes, meat processors should consider adopting the following tools: 

AI-powered procurement platforms 

These market sentiment and forecasting tools analyse global livestock trends, weather patterns, and supplier data to optimise sourcing decisions. 

Real-time pricing dashboards 

Interactive dashboards provide live updates on meat prices, enabling processors to adjust strategies instantly. 

Supply chain monitoring systems 

AI livestock procurement and processing tools track shipments, inventory levels, and supplier performance to enhance supply chain visibility and food traceability. 

Automated production planning 

AI-driven scheduling ensures optimal resource allocation, reducing waste and maximising output. 

Practical Steps for Integration 

Successfully integrating data-driven procurement and production tools requires a structured approach. By systematically evaluating current systems, investing in the right technology, and fostering a data-savvy workforce, meat processors can significantly improve efficiency, pricing accuracy, and supply chain resilience. 

Assess current data infrastructure 

Conduct a thorough evaluation of existing procurement and production processes to identify inefficiencies and areas where data-driven tools can add value. This step ensures that any technological investments align with the company's operational goals. 

Invest in analytics software 

Select software platforms that cater specifically to the meat processing industry. Look for analytics solutions that offer predictive analytics, price forecasting, and real-time supply chain monitoring to enhance procurement and production planning. 

Train staff on data utilisation 

Equip procurement and production teams with the necessary skills to interpret and act on data insights. Training should focus on understanding data-driven decision-making, recognising market trends, and using analytics tools effectively. 

Monitor and refine processes 

Implement a continuous improvement approach by regularly analysing procurement and pricing models. Use real-time analytics to adjust strategies dynamically, ensuring that pricing remains competitive and supply chain disruptions are minimised. 

Embracing Data-Driven Strategies for a Resilient Meat Industry 

Data-driven procurement solutions offer meat processors a strategic advantage in navigating pricing fluctuations and supply chain challenges. By leveraging predictive analytics, AI-driven forecasting, and automation, businesses can enhance procurement efficiency, stabilise costs, and improve profitability. Adopting a data-led approach helps processors stay resilient in an increasingly complex market environment. 

As the meat industry continues to evolve, staying ahead of market trends and integrating cutting-edge technology will be crucial for long-term success. Innovative solutions from partners like Foods Connected offer valuable support in navigating market complexity. 

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