Rising costs threat to beef industry

A wet summer last year followed by one of the driest periods earlier this year has left a distinct lack of straw and hay, giving fears to a livestock sector already burdened by falling prices for beef.

In a speech in Yorkshire this week, National Farmers' Union livestock chairman Alistair Mackinstosh will state that many of the county's beef producers are now operating at below the cost of production and warn supermarkets and UK retailers that it must end its short-term payment policies or else risk putting farmers out of business.

"We hear the right signals from the supply chain about the need to secure a long-term future but the short-term approach currently being taken illustrates that the market is failing to deliver," he said.

"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. As a result we must achieve a greater commitment to delivering a sustainable price."

National Beef Association chairman Oisin Murnion backed up Mr Mackintosh's views saying: "The beef industry is being suffocated because of the lack of competition with the biggest domestic supermarkets for prime cattle."

However there was some good news in the beef sector this week with the announcement that the number of export markets available to beef producers has more than doubled in the just seven days.

Reacting to current difficulties in the domestic beef sector, the English Beef and Lamb Executive has diverted an additional 100,000 to facilitating generic export certificates which will allow exporters to open up new markets. It means nine additional non-EU export markets are available with immediate effect, most of them in Africa.

Mr Mackintosh will give his speech at the Old Horns Inn, Bradfield, Sheffield from 7.30pm on Tuesday.

CW 11/9/10