Are trade deals weakening British sourcing pledges?

Asda’s decision to stock Uruguayan beef steaks last month – after listing Dutch fresh chicken in February – has reignited fresh debate around supermarket sourcing commitments.

And in the wake of a series of trade deals – most recently with the US and India – plus tight supply and soaring inflation, what was once a straightforward case of British and Irish sourcing for beef, or British and New Zealand for lamb, is now developing into a far more varied picture.

Alongside Asda’s moves, Sainsbury’s last month launched a Taste the Difference New Zealand wagyu beef kebab line, Lidl has been stocking Australian lamb for several years, and Ocado is now selling Australian wagyu beef steaks.

So, what does this say about the strength of British sourcing commitments by the mults?

AHDB last week published revised production forecasts that paint a slightly rosier picture than earlier this year, when it warned of significantly lower volumes in both beef and lamb.

However, UK beef production is still forecast to be 4% down on 2024. And lamb volumes – though now forecast to be up 4% year on year – are still down 4% on 2023 levels. Meanwhile, imports are growing to meet rising demand.

Beef imports from Australia, for example, are rocketing, according to HMRC data compiled by Trade Data Monitor. They’re up 800% since 2023 and by 146.2% year on year, while imports of NZ beef have risen by 61.6% [52 w/e 24 March 2025].

Other standout moves include a 17.7% yearly jump in Brazilian beef imports and a 22.2% rise in Uruguayan shipments.

It’s a similar picture for Australian lamb, which is up 44.1% in volume, while NZ imports have climbed by 32.6%.

Such import growth is “inevitable” in light of the UK’s 2022 trade deals with Australia and New Zealand, alongside more recent agreements with the likes of the US and India, ­suggests British meat Processors Association CEO Nick Allen.

“The consumer still regards meat as part of their balanced diet so demand will continue and if supply carries on dropping, there is no alternative but to import more,” he adds. “Even though we have a better climate in which to sustainably produce meat.” 

Plus, both Australia and New Zealand are increasingly looking to grow share in UK supermarkets, in a departure from their original foodservice focus.

Helen Scott, director of UK & Europe for leading New Zealand red meat co-op Alliance Group, says there is “potential to repeat the success [of NZ lamb] with beef” in UK supermarkets. “That’s why we’ve invested in growing our presence in this channel.”

Her comments are echoed by Richard Sanders, country manager for Aussie Beef & Lamb in the UK. He reports the export body is seeing “constructive and increasingly positive conversations between Australian exporters and UK buyers, particularly in light of the current tightness in supply”.

There is also “a clear appetite for diversifying sourcing to enhance supply chain resilience”, he adds.

Sourcing pledges

Of course, their success will depend on the sourcing commitments of the mults. The early forays into non-British or Irish beef, in particular, have so far been shrugged off as inconsequential.

Asda says its two Uruguayan wagyu steak lines – sold under a new Grass & Grill brand developed by red meat partner Hilton Foods – does not represent a break from its 100% British and Irish sourcing pledge. Crucially, that pledge only applies to own-label products.

Sainsbury’s, meanwhile, says it is “roud to work with thousands of British farmers year-round and the vast majority of our beef is sourced from the UK and Ireland”. That figure stands at 98.4%, according to its most recewntly publicised data from 2023. The supermarket has vowed it has “no plans to change this approach”.

The seasonal kebab product “accounts for just 0.1% of our beef range and is an example of where there are times where we may also source from elsewhere, like New Zealand, to meet customer demand”, it says.

“The country of origin is clearly labelled, to help our customers make informed choices when they shop with us.”

Other retailers, however, have clearly cottoned on to these moves and been vocally trumpeting their own 100% British credentials in response.

Waitrose moved to “reassure customers we will never compromise on our long-standing commitment to British farming”, following the US trade deal signing in mid-May.

And Aldi’s UK&I CEO Giles Hurley called out Sainsbury’s NZ wagyu kebabs last week, noting: “That’s from a supermarket which has a British beef commitment.

“All our wagyu beef kebabs are 100% British wagyu, and we won’t compromise on that,” Hurley told The Grocer.

Read more:

• Will UK producers benefit from trade deal with the US?

• Asda lists Uruguayan beef as inflation bites

• What does the EU-UK ‘reset’ mean for food & drink supply?

• How British are the supermarkets and what’s behind their marketing claims?

The “key watchpoint” over the coming months will be how domestic supply flows influence the cattle (and therefore beef) price, and how that impacts consumer purchasing, says AHDB’s lead red meat analyst Hannah Clarke.

“In theory there is still price inflation to be passed through the chain to the shelf, but we’re already starting to see beef demand soften in recent data. Whether we see long-standing commitments to British change is difficult to say.”

But playing with the “semantics” of existing sourcing commitments, could become a more common tactic as imports of often cheaper meat continue to grow, suggests Association of Independent Meat Suppliers’ head of communications Tony Goodger.

More may also see an opportunity to “shift tactics to say something like ‘buying from us is buying British’”, he suggests, echoing the widespread rollout of ‘Buy British’ buttons on websites last spring.

And those tactics could ultimately open up a new front in a fast-developing price war.