FUNDED MRes – A study of price transmission in UK lamb and beef markets

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Meals, Land & Agribusiness Administration
Location:  Newport, Shropshire TF10 8NB
Wage:  As per advert
Publish Kind:  Full Time
Closing Date: 
23.59 hours BST on Monday 15 April 2024
Interview Date: 
To be confirmed
Reference:  MRES-KB2-WCB-R

The Worshipful Firm of Butchers will fund one bursary to assist the price of tuition charges for an MRes Negotiated Research studentship.

The Worshipful Firm of Butchers is likely one of the oldest of the 110 Metropolis of London Livery Firms, and so they can hint their roots again to 975 AD. The Livery Firm gives a singular centre-point to the British meat business and is on the coronary heart of one of many nation’s largest and most vital trades.

Background & underlying rationale

Beef and lamb stand as elementary parts amongst meals commodities consumed in the UK; beef and veal manufacturing worth reached £3.76bn in 2022[i] with beef manufacturing yielded an estimated income of roughly £9.96bn in 2021[ii] , with the sheep meat business’s income seeing a compound annual progress price of 1.5% up to now 5 years, reaching an estimated £1.6 billion in 2023[iii] . The UK is each a major importer and exporter of sheep meat[iv] , whereas the EU dominates UK exports of beef/veal, constituting 85%, and sheep meat accounting for 93% of shipments[v] . 

The lamb retail sector has skilled vital benefits from a shift in client spending habits and heightened market visibility throughout particular events, together with household gatherings. Nevertheless, a section of shoppers base has turned in the direction of more cost effective protein cuts[vi] . As well as, British sheep and goat farmers face robust competitors from lamb imports (New Zealand, Australia) and substitute meats amid the cost-of-living disaster, prompting shoppers to go for cheaper proteins like hen or beefiii .  Furthermore, lamb displays minimal tiering, with smaller worth and premium tiers in comparison with beef and pork, positioning it typically as a extra premium pink meat[vii] . General, pink meat consumption, primarily beef, has decreased within the UK since 2008v . This decline could be attributed to varied elements together with challenges posed by the price of residing[viii] [ix] , meals value inflation and broader shifts in life-style patterns[x] whereby shoppers flip to plant-based choices[xi] as a result of well being and environmental issues associated to beef manufacturing[xii] [xiii] . 

The predominant choice of the common UK client leans in the direction of high-value cuts of pink meat, encompassing picks like beef steaks, roasting joints, and lamb chops, alongside extra economical selections similar to lamb and beef mince[xiv] [xv] . Alongside these strains, within the final yr, quantity elevated considerably for value-tier merchandise, similar to a 59.1% rise in beef, 30.0% in pork, and 66.1% in lamb. This shift is linked to shoppers choosing lower-tier selections over branded and premium gadgets to handle their meals expensesxv . Elevated pink meat costs as a result of inflation have resulted to a decline in branded merchandise, dropping £43 million. Though some shoppers have transitioned to worth ranges, most losses in branded merchandise have benefited customary own-label gadgets, with a acquire of £27 million[xvi] .

The sheep farming business within the UK is very fragmented, with no single firm contributing at the least 1% to business income. The reliance on grazing makes it difficult for farms to attain economies of scale in comparison with international locations the place livestock are primarily grain-fediii . In 2021, the UK had 121 sheep abattoirs, a decline from 135 in 2019. Farmers with fewer abattoirs expertise elevated slaughter prices, resulting in diminished profitability and revenueiii . Equally, the UK beef sector is characterised by excessive diploma of regulation, the manufacturing base stays notably fragmented and characterised by entrenched conservative practices whereas roughly 80% of meat is instantly channelled to shoppers via meals retailers. Analysis helps that top market focus facilitates sooner transmission of will increase in producer costs in comparison with decreases thus main to cost asymmetry throughout the meat provide chain. As such, retailers could exert appreciable affect over beef/lamb and associated beef/lamb merchandise; probably affecting producers’ capability to barter truthful costs or reply to market shifts. Thus, this focus of energy throughout the processing sector may prohibit the profitability and adaptableness of beef and lamb producers. On this context, the current work goals to discover vertical value transmission within the UK lamb and beef provide chains. Specifically:

This work will look at the worth changes alongside the lamb and beef provide chains within the long-run, between producer costs and completely different lamb and beef cuts on a retail stage. 

The course of value causality within the lamb and beef provide chain shall be explored

The short-run dynamics between producer costs and completely different lamb and beef lower costs on a retail stage shall be examined.

This shall be pursued utilizing secondary knowledge from AHDB database and by using cointegration strategies, error correction fashions and causality checks to additional perceive the worth transmission mechanism within the UK lamb and beef provide chains. The findings generated from this work may very well be used to tell determination making by all actors within the UK lamb and beef provide chain, and others similar to AHDB and DEFRA that monitor and develop insurance policies for balancing producer and client welfare.

MRes Scholarship Outcomes

It’s envisaged that the proposed MRes Scholarship will produce a researcher/skilled able to critically and pragmatically analysing value transmission and mechanisms in any UK or worldwide commodity market. The scholar will obtain coaching in agricultural economics and utilized econometrics, gaining the power to competently analyse various secondary knowledge and report on business related findings.

The outcomes of the scholar’s analysis will embody establishing the fundamental knowledge necessities to allow the evaluation of costs inside UK lamb and beef provide chains. The methodological strategy and findings shall be printed in a peer-reviewed journal. 

[i] Statista (2023). https://www.statista.com/statistics/316075/beef-and-veal-production-value-in-the-united-kingdom-uk/  (Accessed: 16 December 2023)

[ii] Statista (2023). https://www.statista.com/subjects/7544/uk-beef-market/#editorsPicks (Accessed: 15 December 2023)

[iii] IBIS (2023). A01.450 Sheep Farming within the UK. https://www.ibisworld.com/united-kingdom/market-size/sheep-farming/ (Accessed: 19/01/2024)

[iv] AHDB Horizon (2021): Alternatives for the sheep sector. https://projectblue.blob.core.home windows.internet/media/Default/Beefpercent20&%20Lamb/HorizonOppsSheepSector4196_260321_WEB.pdf (Accessed: 18/01/2024)

[v] AHDB (2023): Beef and lamb at a look. https://ahdb.org.uk/beef-and-lamb-at-a-glance (Accessed: 19/01/2024)

[vi] AHDB (2023): Lamb market outlook. https://ahdb.org.uk/lamb-market-outlook#:~:textual content=Sheeppercent20meatpercent20production&textual content=Assumingpercent20averagepercent20conditionspercent20andpercent20grasspercent20growthpercent20thispercent20seasonpercent2Cpercent20wepercent20would,%2Cpercent20uppercent202percent25percent20frompercent202022 (Accessed: 18/01/2024)

[vii] AHDB (2023): Worth-tier pink meat and dairy gross sales soar as different tiers endure. https://ahdb.org.uk/information/consumer-insight-value-tier-red-meat-and-dairy-sales-soar-as-other-tiers-suffer (Accessed: 18/01/2024)

[viii] AHDB (2022): https://ahdb.org.uk/information/consumer-insight-cost-of-living-increases-are-driving-meat-reduction (Accessed: 4 December 2023)

[ix] Pastorino, S., Cornelsen, L., Cuevas Garcia-Dorado, S., Dangour, A. D., Milner, J., Milojevic, A., Scheelbeek, P., Wilkinson, P. and Inexperienced, R. (2023). The way forward for meat and dairy consumption within the UK: exploring completely different coverage situations to satisfy internet zero targets and enhance inhabitants well being. International Sustainability. Cambridge College Press, 6, p.e10 DOI: https://doi.org/10.1017/sus.2023.9

[x] AHDB (2023a): https://ahdb.org.uk/information/consumer-insight-value-tier-red-meat-and-dairy-sales-soar-as-other-tiers-suffer (Accessed: 20 December 2023)

[xi] Stewart, C., Piernas, C., Prepare dinner, B., and Jebb, S. A. (2021). Tendencies in UK meat consumption: evaluation of information from years 1-11 (2008-09 to 2018-19) of the Nationwide Food plan and Diet Survey rolling programme. The Lancet. Planetary well being, 5(10), e699–e708. DOI: https://doi.org/10.1016/S2542-5196(21)00228-X

[xii] Mintel (2022). https://retailer.mintel.com/report/uk-meat-substitutes-market-report (Accessed: 6 December 2023)

[xiii] Willett, W., Rockström, J., Loken, B., Springmann, M., Lang, T., Vermeulen, S., Garnett, T., Tilman, D., DeClerck, F., Wooden, A., Jonell, M., Clark, M., Gordon, L.J., Fanzo, J., Hawkes, C., Zurayk, R., Rivera, J.A., Vries, W.D., Sibanda, L.M., Afshin, A., Chaudhary, A., Herrero, M., Agustina, R., Branca, F., Lartey, A., Fan, S., Crona, B., Fox, E., Bignet, V., Troell, M., Lindahl, T., Singh, S., Cornell, S.E., Reddy, Okay.S., Narain, S., Nishtar, S. and Murray, C.J.L. (2019). Meals within the Anthropocene: the EAT–Lancet Fee on wholesome diets from sustainable meals techniques, The Lancet, 393(10170), pp.447-492, ISSN 0140-6736, DOI: https://doi.org/10.1016/S0140-6736 (18)31788-4.

[xiv] NFU (2022): GROWING OUR AGRI-FOOD EXPORTS TO 2030 AND BEYOND – Beef and Lamb.  https://www.nfuonline.com/media/t5wne1ii/trade-export_beef-and-lamb.pdf (Accessed: 18/01/2024)

[xv] AHDB (2023d): Worth-tier pink meat and dairy gross sales soar as different tiers endure. https://ahdb.org.uk/information/consumer-insight-value-tier-red-meat-and-dairy-sales-soar-as-other-tiers-suffer (Accessed: 18/01/2024)

Software Process:

Functions needs to be made by sending a full Curriculum Vitae and supporting paperwork to Dimitrios Paparas –  [email protected]

Candidates ought to make sure that they supply full particulars of the identify, postal tackle, e-mail tackle and phone variety of two referees.

Software deadline is 11.59pm UK time on Monday, 15 April 2024 

Additional data could be discovered on the HAU web site at www.harper-adams.ac.uk and on the analysis coaching supplied and MRes necessities at: 

https://www.harper-adams.ac.uk/programs/postgraduate/201135/master-of-research

For casual enquiries on the undertaking, candidates could contact the Director of Research, Dimitrios Paparas – [email protected]

Solely House residents (UK, Eire, Isle of Man & Channel Isles residents) could apply for the WCB Studentship, which covers operational funds and all tuition charges. 

All candidates will need to have:

o   UK honours diploma (or equal) in Agricultural Economics, Agribusiness, Agriculture, or associated fields, with a minimal 2.1 achievement in diploma qualification (or equal)

o   Honours diploma plus earlier and applicable analysis expertise

o   Postgraduate diploma or equal (at benefit or distinction)

AND 

• Proof of curiosity and expertise in agricultural economics and the worth transmission in UK lamb and beef markets or proof of a powerful want to be taught.
• The power to work as a part of a analysis crew and self-motivation to take duty for their very own work, and proof for example this.
• A minimal stage of competency in English. Worldwide candidates should be classed with an total Worldwide English Language Take a look at System (IELTS) grade of 6.0 with a minimal of 5.5 in every part. Worldwide candidates, or these whose first language just isn’t English, could present proof of this by importing their certificates. Alternatively, proof of profitable achievement of a level taught in English could also be adequate. Please see the next hyperlink with regard to English Language necessities: https://www.harper-adams.ac.uk/university-life/worldwide/english-language.cfm

Fascinating attributes embody expertise of utilized econometrics and knowledge evaluation expertise, and proof of written and verbal communication of scientific studies, and assessment or consciousness of scientific literature in English.

Interview date – mid-late June

Course begin date: Tuesday seventeenth September 2024 

Finish date: August 2025