March 28, 2007

US beef association urges British beef producers to maintain production levels
 

Improvements in the world economy should have beef producers in United Kingdom to hold on to its beef production capacity, says the Colorado-based National Beef Association (NBA).

The association said British beef industry could be "critically undermined" by short sighted wholesale and retail pricing policies leaving UK farmers facing long term losses. It noted that UK retailers and caterers may not be able to rely on imports to top up national supplies and could also struggle to secure home-produced beef in less than five years.

NBA chairman Duff Burnell believes that global economy and political stability "may bring unexpected urgency to the possibility that UK may face genuine beef supply pressures much sooner that anyone had anticipated".

Burnell added worldwide economic and political constancy would raise living standards in developing countries, thus, the surge in demand for more meat. He stressed the continued steady reduction in EU production which began more than 10 years ago created an ever-widening gap between supply and consumption and this has therefore increased the demand for beef in the region.

Other forecasters believe the potential for huge production increases in South America, particularly Brazil, will always mean supply gaps can be filled. But the association said most of this would be absorbed domestically.

Burnell said that UK's continued efforts on beef output is not just for the country's self-sufficiency but to rectify the industry's view on its production capacity to fill and absorb beef demand globally should major beef exporters are unable to satiate world supply.