Some UK livestock farmers could strengthen the long-term viability of their businesses by combining food production with environmental activities, according to new research that has reignited the debate over farm profitability.
Analysis by the environmental think tank Green Alliance shows that despite British people eating less meat than they did 20 years ago, domestic production continues to rise.
Research published today (9 January) shows that beef production has increased by 29% over the past 20 years, while pork production has increased by 35%, even as consumption has declined.
The report suggests that farmers are supplying overseas markets despite reduced domestic demand, with exports absorbing the shortfall.
At the same time, pasture-raised livestock farmers face sustained financial pressures. The analysis found that beef and lamb production is likely to be in the red from 2020 to 2024, reflecting rising costs and historic reliance on direct payments. Lowland grazing farms lost an average of 7,925 pounds to farming, while upland grazing farms suffered losses of 5,550 pounds.
The findings were announced as farmers gather at this week’s Oxford Agriculture Conference, intensifying debate over whether current policies support viable livestock enterprises, healthy diets and environmental outcomes.
Despite losses in meat production alone, many pasture-raised livestock farms continue to be profitable overall due to government support.
According to research, around half of their income in recent years has come from EU-style basic payment schemes.
From 2020 to 2024, upland grazing farms derived 58% of their average revenue income from base payments and 32% from agri-environmental schemes.
Lowland grazing farms derive 49% of their income from basic payments and a further 31% from diversification activities.
However, the report warns that many farms face funding shortfalls as the basic payment is due to end next year in the UK and alternative schemes remain limited.
The Green Alliance said expanding environmental initiatives could help support agricultural incomes alongside food production.
Under the Government’s Environmental Land Management Plan, activities such as habitat creation and peatland restoration are expected to complement, rather than replace, livestock systems and generate greater benefits.
Livestock production remains central to the country’s food production, rural economy, and management of vast grasslands unsuitable for cropping.
Industry groups have previously warned that environmental programs cannot replace the role of food production in maintaining viable agricultural businesses.
The NFU said environmental payments could support farmers’ incomes, but they needed to be linked to profitable livestock farming to provide long-term certainty, rather than prompting cuts to domestic food production.
The think tank warned that the ELM scheme is currently not accepting new applicants and that progress will depend on the pace of results.
Lydia Colas, head of natural environment at the Green Alliance, said the decline in meat consumption meant we needed to rethink how we supported farming operations.
“Britons are eating less meat than they were 20 years ago, which is good for their health and good for the planet,” she says.
He added that if some beef and lamb farmers balance livestock production with environmental income sources, “they can actually make their farms more profitable”.
Collas said such an approach could also help restore wildlife, improve water quality and reduce flood risk.
The findings could strengthen calls for governments to accelerate the rollout of environmental land management plans as livestock farmers look for ways to maintain food production while ensuring the long-term sustainability of their operations.
