April 1, 2008

UK beef producers should get higher returns
 

Domestic beef supply will dry up if beef producers do not receive a fair and equitable return, said the UK's National Beef Association.

The NBA has called for supermarkets to pass price increases along to beef suppliers to prevent a decline in production.

According to NBA Director Kim-Marie Haywood, beef prices have gone up but supermarkets haven't passed these on to their suppliers.

The cost of beef production has increased significantly due to increasing cost of commodities and the UK government's strict rules and regulation on environmental issues and animal welfare, said Haywood.

For beef producers, this situation results in returns that are less than the cost of production, Haywood added.

If beef suppliers' returns do not increase, the entire UK beef industry could collapse, warned Haywood.