EU Beef Working Group
20th June 2011
Region: National
There is a crisis in the UK beef industry, and it is particularly acute in the production of beef from the suckler cow herd. Continued loss making, now accompanied by increased working capital requirements following higher costs for feed, oil, regulation and replacements, is now forcing radical change on beef production, despite recent increases in beef prices. But there is a continued reluctance for consumers (and retailers) to pay for the true cost of UK beef in the market place. But beef delivers more than just food - it delivers environmental and social benefits for which there is currently no market return.
If current economic trends continue there will be no alternative to a dramatic reduction in the supply of beef from UK beef producers. This will take time to show due to the long term nature of beef production and indeed in the short term there may be an increase in supply. The NBA sets out the risks in the attached papers.
