UK beef association exposes dishonesty in slaughter costs

Scores of slaughterhouses across the UK are overcharging finishers and post-slaughter deductions are in a mess so as to disguise the greed of some companies, according to the National Beef Association (NBA).

Many slaughterhouses charge finishers from GBP3.50 to GBP8 per head for bovine offal and risk material removal. Others require payment of up to GBP10 per head to recover the cost of brain stem testing for over 48-month cattle, which should cost less than GBP5.

The messy post-slaughter deductions demanded by UK slaughterhouses not only disguise the greed of some companies, but also hide the good intentions of others which take off little more than is demanded of them by statutory levies, classification costs, meat inspection charges and genuine operating costs, said NBA director Kim Haywood.

The net result is that finishers selling directly to greedy companies, that may lure them in by offering slightly more than the average quotation per kg, could end up losing the equivalent of up to 3p per kilo, or about GBP10 a head, in deductions while the same slaughterhouse, depending on its throughput and its costs, could pocket thousands of additional pounds, said Haywood.

Some slaughterhouses that processes more than 20,000 prime cattle per year are charging between GBP8.50 to GBP12 per head above the GBP5.13 required to be taken off statutorily, and GBP1.50 for classification, and so can add between GBP170,000 to GBP240,000 per year to their bottom line, said Haywood.

National figures, obtained through finishers' kill sheets show some prime cattle specialists, including Scotbeef, can take off just GBP9.70, or less, which includes statutory deductions, while others like Dawn Meats at Carnaby can demand GBP18.61 or more.

These variations are an industry disgrace, and finishers should focus their attention on processors which offer a good price per kg and deduct the least after the animal is slaughtered, she said.

There are around two million prime cattle processed in the UK each year and the overcharging, conducted over a number of years, has already cost hundreds of finishers many millions of pounds, she added.

US$1 = GBP0.605728 (Nov 5)