At the end of last week it emerged that Asda, the UK’s third largest grocery retailer, has started selling beef from Uruguay. The product offered is a 30-day matured sirloin steak and is marketed under a “Grass and Grill” label.

The label indicates that the product is from Uruguay and it is packed in the UK by Hilton Foods, Huntingdon. It is selling at £4.98 (€5.92) for a 227g pack, which works out at £21.94/kg (€26.12/kg).

The range also includes a ribeye cut. Grass and Grill is a Hilton brand, not an Asda own label brand.

In response to a query from the Irish Farmers Journal, an Asda spokesperson said: “We always look to offer customers a wide choice of products to suit all budgets.

“These steaks are provided by a branded partner and are available in our stores for a limited time only. All of Asda’s own brand fresh beef continues to be sourced from farms in the UK and Republic of Ireland.”

According to Kantar data, Asda has the third largest share of the grocery market in the UK at just over 12%, and has previously only sold British and Irish beef.

Policy change

The arrival of imported beef on to the shelves of a major supermarket didn’t come as a surprise to anyone in the beef trade.

As Figure 1 shows, Irish cattle prices have been increasing week on week this year at an unprecedented rate. In Britain prices were higher again, running at over €1/kg more than the Irish equivalent though this has closed to 60c/kg recently as prices fell from their record average steer peak of £7.03/kg (€8.37/kg) at the start of May.

Figure 1 also shows just how much lower cattle prices are in Uruguay. Even if they have been increasing recently, the rate of increase in 2025 has been modest compared with Ireland and the UK.

Last week, the equivalent euro price per kilo was €4.12/kg, a huge €3.44/kg less than the Irish R3 steer price. With cattle prices rising rapidly, it is no surprise that a major supermarket would look for a cheaper supply source, especially as they have recently begun a price cutting strategy to grow their sales.

Toe in the water

Asda hs attempted to distance itself from the imported beef by emphasising that it is being sold under a supplier’s brand and not part of its own brand range, which remains British and Irish.

It has also said that it is on sale for a limited time and that its motivation is to give its customers choice. This means that it is essentially running a trial to test both consumer and farmer reaction to this change in beef sourcing policy.

If there is an outcry either from farmers in the UK or customers, then the initiative can be quietly shelved. So far there has been some farmer protest on social media but no more than might be expected.

However, if cattle prices continue to fall in the UK, then that may change.

Why now?

Put simply, supermarkets have had to pay much more for beef as farm gate cattle prices rose in 2025.

Alongside this, consumer demand for beef has been particularly strong since the latter part of last year, with several anecdotes of steaks being cleared off shelves by eleven o’clock in the morning.

Previously, supermarkets were able to pass this risk off to factory suppliers, but in recent times factories had declined long term contracts and insisted on regular price negotiations to reflect the market situation.

Figure 2 shows that some of the higher price being paid for beef is being passed on to consumers as the beef price index is rising faster than the overall food price index.

However supermarkets have only begun increasing retail prices, and it usually takes several months for retail prices to adjust to reflect farm gate prices.

Why Uruguay?

While the introduction of an imported beef range wasn’t a major surprise, it was thought that Australian beef might have been chosen instead. As well as an historical connection, Australia enjoys tariff-free access for beef exports to the UK, whereas Uruguay doesn’t have a trade deal.

However, the Uruguayan cattle price means that its beef is compositely priced and it can also offer a quality grass-based product that has a comprehensive individual animal traceability system. There are also no rainforest issues as Uruguay has recently been declared a low-risk country for deforestation by the European Commission.

Comment: competition for Irish beef

Irish beef traditionally has traditionally been the back up supply source for Asda as well as Tesco and Sainsbury’s. Asda’s decision to traial an alternative range will be watched by the big two.

The remainder of the top ten UK supermarkets who don’t seel Irish beef are also likely to be watching the reaction to the stocking of a South American alternative beef offering. If it is successful with minimal negative reaction, the British supermarkey sector will be tempted to carry cheaper imported beef as an alternative.

UK supermarkets will always give top priority to British beef in their range, even if they carry an alternative imported option. Irish beef has successfully sold alongside British in Tesco, Sainsbury’s and Asda as an alternative quality product.

If an imported range is successful with consumers in these supermarkets, then the competition will be felt by Irish beef in the first instance. Of course in the longer term if consumers demonstrate a preference for lower cost imported beef, then the shelf space will be allocated accordingly and the competition will be felt by suppliers of British beef as well.