September 8, 2010

Low prices threaten the future of UK beef industry

UK farmer leaders have warned that the long-term future of the country's beef production is under threat from the prolonged low beef price.

The year-long decline in the price has left producers operating below the cost of production. Fears are mounting that costs will continue to rise on the back of increased feed and bedding costs this winter.

Now, the livestock chairmen from the National Farmers' Unions of England, Scotland, Wales and Northern Ireland have made a joint call for improved prices.

A statement to the supply chain said: "At current prices, beef producers will be unable to afford to produce beef this winter and some are starting to seriously question their future in the industry. The drought in Russia and reduced harvest yields in other parts of Europe are already having a major impact on the price of grain, while fuel prices also remain very high."

They called for retailers and processors to give long-term commitments to a sustainable price.

"This is the only way to give producers the confidence to go forward, go to the expense of finishing cattle this winter, and deliver what the market demands," they said.

The leaders acknowledged there had been some positive supply chain initiatives but said they need to go further, backed by a commitment to UK produce.

They said: "It's clear that UK consumers want to buy UK beef. They recognise its quality, our stringent standards of animal welfare and the huge environmental benefits of UK beef over imported products. This really is a wake-up call; producers must start to get a fair share of the retail price if they are to remain in production. Given a clear price commitment from the supply chain, UK farmers can rise to the challenge of producing a quality product."