September 9, 2010

 

US beef processors urged to fight for higher prices

US meat processors are being urged by the National Beef Association (NBA) to boost beef exports to break the monopoly of supermarkets and force up the price of beef cattle.

 

The NBA says it is in processors' own interests to achieve higher prices to help avoid long-term supply problems caused by farmers cutting back production.

 

"The beef industry is being suffocated because of lack of competition. Supermarkets are enjoying an iron grip on supply because the lack of any meaningful challenge in the market place allows them to continue with discount-led retail policies which undermine the value of cattle. As a result, market returns are failing to meet farmers' ever-increasing costs," NBA chairman, Oisin Murnion, claims.

 

The NBA wants processors to open up new export markets for beef in the under-supplied European market. Beef exports have increased by 16% this year but Mr Murnion says there is considerable potential to boost exports further.

 

"Export competition will force supermarkets to pay more because home-produced beef will be harder to find and they know the majority of their customers are not satisfied with imports. The extra income will keep producers in business and ensure future supplies for both domestic and export markets. Processors must seize profitable export opportunities. If supermarkets are allowed to continue to under-price UK beef, they will force processors out of business because of reduced supplies of cattle," said Mr Murnion.

 

According to the Organic Milk Suppliers Cooperative (OMSCo), demand for organic milk is recovering strongly, while supplies are declining.

 

The co-op's annual market report forecasts an increase of 9% in demand this year. But supplies are expected to be 3% down – the first decline in annual output since the early 2000s.

 

"Organic milk sales have held up well in comparison to other organic markets in the face of difficult economic circumstances, driven by a low organic premium and a successful marketing programme," said OMSCo marketing director, Richard Hampton.

 

Sales of organic milk account for less than one pint of every 30 pints sold. A new television campaign for organic milk has been launched over the past week which for the first time will be supported by online, outdoor and in-store media.

 

Ayrshire dairy farmer Tom Campbell, and Stranraer producer Hugh Parker, have been appointed to remain on the board of dairy co-operative, First Milk, following a shake-up.

 

Three new farmer directors have been appointed to the board by chairman, Bill Mustoe, on the advice of an advisory group set up in April in order to add commercial experience to the co-operative's board.