December 7, 2006

UK beef farmers must act wise to save industry

UK beef production could only be maintained in anything approaching its current volume if producer incomes increase by 20-25 percent at the same time as production efficiency is lifted by around 30 percent, concluded the National Beef Association.

The analysis came after the newly modelled beef farm income figures for 2005-2006, which confirmed cross-UK net losses of around GBP450 (US$885) per suckler cow and perhaps GBP150 (US$295) per slaughter animal.

The disastrous profit and loss evidence must shake all those who rely on the continued production of domestic beef cattle and wish to develop a sound future for an efficient UK industry, said NBA chairman, Duff Burrell.

In order to pull out the beef sector, farmers must be given a chance to re-structure their businesses by using their ever-declining single farm payment (SFP) to fund new production efficiencies. For that to happen, they must be offered a substantial increase in direct market income, he elaborated.

The twin pronged approach seems to be the only way of maintaining domestic production levels at a time when world production was creeping closer to global deficit.

Farmers would henceforth, need to make a determined effort to spread their overheads and invest money to achieve their lowest possible unit cost instead of sitting with their fingers crossed and waiting for a timely lift in the market to ride to their rescue, he emphasised.