Plea to retailers not to exploit farmers

Retailers, beef processors and abattoir owners are urged not to take advantage of farmers’ vulnerability and reduce slaughter cattle prices now that finished animals can be transported directly to abattoirs after the short FMD related suspension in processing activity.

This plea comes from the National Beef Association which is pleased that deadweight-only purchasing stuttered to a start in Scotland earlier today (August 8th) and is due to begin tomorrow (August 9th) in all areas of England and Wales outside the FMD protection and surveillance zones in Surrey.

“Feeders are only to well aware of the immediate 15p-25p per dwkg slump in finished cattle prices that followed the resumption of slaughter activities during the 2001 outbreak and would regard any price penalty as a signal that supermarkets and other beef buyers are to ready to exploit their current helplessness,” explained NBA director Kim Haywood.

According to the NBA there is no logical reason for a price fall and every reason to think that the cross-UK prime cattle price rises recorded last week will continue as slaughtering activity builds up momentum.

“Beef stocks at both retail and processing level have run down as a result of slaughter suspension and the current export ban should not impact on prices either because less than three per cent of prime beef production was sold overseas“, said Ms Haywood.

“Short supplies of slaughter cattle in Scotland lifted prices north of the border by more than 10p per dwkg over the last two weeks of normal trading so they should at least stand on at around 222p for R4L steers while a rise in prime cattle auction prices in England and Wales last week suggests no reason why this upward move should not spill into deadweight purchasing in England and Wales over the remainder of this week either.”

“However it is important that multiple retailers relax their permanent quest to seize every opportunity to drive down prices paid to suppliers and give their processors as much room as is necessary to accommodate the increased costs they face as a result of temporary difficulties with offal disposal, lairage washings and other post-FMD constraints.”

And the NBA is anxious that finishers throughout Britain fully understand the new conditions for movement to slaughter and make sure that collection is confined to single farms and that documentation is in order.

“No one should move cattle to slaughter unless the delivery is licensed and a nominated abattoir has booked them in. Details of what is necessary is being passed on to feeders as soon as we receive it,” Ms Haywood added.

For more information contact:

Kim Haywood, NBA director.  Tel. 0131 336 1754