March 26, 2007

Beef prices bite into ANM Group profits
 

British agri firm ANM Group has reported a profit plunge of GBP (Great Britain pounds) 778,000 GBP pounds in their operations in 2006 from GBP 1.15 million the previous year.

According to ANM Chairman John McIntosh, the problems have delved on the company's food-related business due to "tremendous pressure on margins created by operating in a very competitive and over-supplied marketplace". 

McIntosh admits it is highly unlikely that their food sector will see a dramatic shift this year but he still is optimistic on the greater stability in raw material prices that will have the market adjust to new levels.

ANM's Scotch Premier Meats after incurring losses in the last decade has again slumped by over GBP1 million pounds resulting in a loss of GBP 391,000. Highland Country Foods and Charcuterie also slipped into the red with respective losses of GBP 64,000 pounds and GBP 117,000 pounds. Yorkshire Premier Meatstook took the major hit but this division remained in the black with a bottom line of GBP 87,000.

Chief executive Brian Pack said beef market last year has been confused by the introduction of a substantial quantity of cow beef and as soon as the market adjusts to less prime cattle, more cow beef will register higher prices.

Pack has been one of the few industry figures to call for some form of support for the suckler cow sector following the implementation in 2005 of the reforms of the Common Agricultural Policy.

Production is now decoupled from support with the result that there has been a significant reduction in the breeding herd.

This has resulted in a fall in supplies of prime cattle and abattoirs being forced to pay higher prices to farmers to maintain throughput.

However, the supermarkets have been reluctant to pay more putting very considerable pressure on margins and most abattoirs are currently operating on a knife-edge.

Pack said Scotch Premier and Yorkshire Premier--their two major earners--are hoped to overcome adverse trading conditions this year.