July 23, 2010

Asda expands new beef contract

British supermarket chain Asda has extended its new beef pricing contract to Anglo Beef Processors (ABP) suppliers in the UK and Northern Ireland.

The contract, which aims to reduce exposure to market volatility, was trialled with a small group, Dawn Foods suppliers, earlier this month. It incorporates a target contract price of GBP0.27 (US$0.41)/kg and if the market price moves above or below that level, the farmer will receive 50% of the difference.

The contract is available at all ABP and Dawn Foods sites and is available to Asda BeefLink suppliers for those animals that are born, reared and finished on the same holding.

"The contract is designed to reduce the peaks and troughs that exist in the beef market and help manage volatility, which is a major concern for all producers," said Asda senior meat buyer Jim Viggars.