Reshaping the beef and lamb supply chain: Opportunities for processors large and small

Reshaping the beef and lamb supply chain: Opportunities for processors large and small

A new Agriculture and Horticulture Development Board (AHDB) study has revealed how the changing structure of England’s beef and lamb processing sector – including abattoirs, cold storage facilities, cutting and other processing sites – is reshaping supply chains, with major implications for farmers, rural communities and national food security.

According to the Food Standards Agency, the UK meat industry supported an estimated 50,000 farmers and employed around 97,000 people directly in 2023. The domestic abattoir and processing industry is a critical link in this chain, supporting livestock producers and interconnected sectors such as dairy, which supplies over half the cattle slaughtered for beef in Great Britain.

Between 2019 and 2024, the number of English abattoirs processing cattle and sheep fell by 16% and 15% respectively. This decline has been concentrated among smaller and medium-sized plants, while larger facilities have taken on an increasing share of throughput.

According to AHDB abattoir numbers, almost half (46%) of all cattle slaughter in 2024 took place in just 13 of the largest abattoirs, while the 50 smallest abattoirs accounted for only 3%. The sheep sector is even more concentrated, with 62% of sheep slaughter in 23 large abattoirs and just 1% in the smallest 27.

This restructuring reflects broader changes in livestock supplies: between 2019 and 2024, total cattle slaughter in GB rose by 5.4% to 2.2 million, while sheep slaughter declined by 13% to 11.4 million.

While consolidation offers efficiency gains and economies of scale, it also increases the sector’s exposure to disruption if fewer sites are relied upon for slaughter, cold storage, cutting and further processing.

Annabel Twinberrow, Livestock and Retail and Consumer Insight Analyst at AHDB, said: “Despite overall capacity being maintained, the closure of small abattoirs is detrimental to the wider supply chain. As well as the social and welfare benefits they bring, smaller and localised abattoirs provide vital business to farmers, butchers and rural communities, including private kill services that support direct sales to consumers.”

The report highlights the importance of cold storage, freezing, cutting and further processing facilities in balancing supply with fluctuating demand, particularly for lamb. Greater integration of processing sites can improve efficiency and coordination, but also concentrates risk if sites are disrupted.

AHDB’s analysis suggests that both large and small processors can adapt to the changing landscape. Larger abattoirs are investing in automation and technology to address labour shortages and improve efficiency, while smaller plants can diversify services and capitalise on local markets.

Annabel added: “Small abattoirs should make the most of their unique selling points and communicate their benefits. While expanding capacity may be costly, offering additional services – such as opening a butcher’s shop – can create new income streams. Collaboration with larger processors could also provide access to butchery training, waste management and transport resources.”

The report concludes that a resilient processing supply chain is essential for supporting domestic production and safeguarding food security. With livestock numbers forecast to decline by 2030, striking a balance between efficiency, resilience and sustainability will be crucial.

To read the full article, visit: https://ahdb.org.uk/how-has-the-structure-of-the-beef-and-lamb-processing-sector-changed-over-time