Beef Crisis Summit

The NFU is calling for a beef crisis summit meeting.  The Union has already held its own discussions with meat processors and retailers but has asked DEFRA Ministers for a Government-led industry meeting between farmers, retailers and processors to discuss what can be done about the sudden fall in the farmgate beef price. 

The call comes as deadweight prices continued to fall.  Eblex data for the week ending 14^th June showed the deadweight GB all prime cattle price fell a further 2p on the week to 327.6ppkg; R4L steers were back by 3.9p compared to week earlier levels to 340.5ppkg.  According to Eblex, ample supplies both domestically and imported, together with a lack of consumer demand continues to apply downward pressure on prices.

UK prime cattle throughputs were 3% higher in May this year compared to last and for the third consecutive month steer throughputs have been higher than year-earlier levels.  In May they were 6% more, the highest year-on-year difference so far.  Due to better weather this year and a reduction in feed costs carcase weights weights are also heavier – prime cattle carcase weights were 12kg higher than in May last year whilst cows were up by 15kg.  The combination of increased throughputs and heavier carcases has meant the UK beef and veal production in May was 5% ahead of that in 2013 at 67,000 tonnes.  This is despite cull cow numbers being lower, as producers take advantage of the ample grass this year to add flesh before selling them.  The strengthening of the Pound isn’t helping either, meaning imported Irish beef is now more competitive.

The NFU is calling for the summit to be held sooner rather than later, in June or July, to get industry stakeholdersto improve the supply chain relationships.  It is looking for some principles to be set down for the fair treatment of suppliers which will instil some confidence in the industry.  It is proposing the following actions:

• Retailers to clearly differentiate and actively promote British beef
• Processors must outline longer term prices to allow producers to plan
• The food service sector needs to get behind British and Red Tractor beef
• Development of risk management options for producers
• Changes in specification and charges for out of spec animals need lead in periods and better communications (introduction of a voluntary code, similar to Dairy?)
• Government to redouble work to open up export markets