Low beef price needs to be discussed at Westmorland Show - says NFU livestock chairman

Thursday 02 September 2010

NFU’s national livestock board chairman, Alistair Mackintosh, will rush back from high level talks about the future sustainability of beef farming in Europe to be at the Westmorland Show on Thursday 9 September.

Cumbrian farmer Mr Mackintosh, who will be representing English farmers at next week’s Copa Cogeca (The united voice of farmers and their co-operatives in the European Union) meeting in Brussels, believes the long term sustainability of UK beef production is being threatened by the continuing low beef price.

He wants to discuss this with farmers at the Westmorland Show, an agricultural show which is now in its 211^th year and one which Mr Mackintosh knows thousands of farmers will turn up to regardless of the weather.

Mr Mackintosh said: “Westmorland Show attracts real practical farmers who know a thing or two about rearing high quality beef stock. I’m sure the vast majority will be concerned about the continued year-long decline in the beef price which has left producers operating below the cost of production. Westmorland Show is the perfect venue for me to explain to them what the NFU is doing on their behalf. I’m sure they will also have some good ideas themselves about what should be done to remedy this worrying situation and I will be all ears.

“We hear the right signals from the supply chain about the need to secure supply on a long-term basis but the short-term approach currently being taken illustrates that the market is failing to deliver. At current prices beef producers will be unable to afford to produce beef this winter and some are starting to seriously question their future in the industry.

“While retail demand for beef continues to remain strong we have seen this correspond with increased supply. While retail sales are up on the year this has been driven by promotions and the retailers need to look at ways to re-balance the carcase and ensure producers receive more market share. It is imperative that the supply chain gives the right signals through long-term commitments to a sustainable price. This is the only way to give producers the confidence to go forward, go to the expense of finishing cattle this winter, and deliver what the market demands.

“In order to install confidence and drive sustainability the retailers and processers have got to start backing up their claims of commitment to UK beef farmers. We have started to see some positive supply chain initiatives from some within the supply chain but we need to see these go further and for them to be backed up by greater commitment to UK produce. It’s clear that the UK consumer wants to buy UK beef; they recognise its quality, our stringent standards of animal welfare and the huge environmental benefits of UK beef over imported products.

“This really is a wake up call; producers must start to get a fair share of the retail price if they are to remain in production. Given a clear price commitment from the supply chain UK farmers can rise to the challenge of producing a quality product for the UK consumer.”