19 November 2010

4 minute read

Europe

The ultimate goal of the focus is to help achieve a sustainable price for beef and lamb producers in England.

It is proposed that the move, over and above the existing research and development, better returns and marketing work already undertaken by the organisation on behalf of around 50,000 producers, would be funded by an increase of 83p to the statutory beef levy rate, it is currently £4.57 per head of cattle, as well as an increase in the sheep levy rate.

The new rate for beef would be £5.40 per head. Of this proposed 18 per cent increase, the levy (if agreed) would be set at £4.05/head for cattle producers and £1.35/head for cattle slaughterers.

The proposals will see EBLEX working to increase beef exports from 10 per cent to 20 per cent of production by 2012. There is also a target to increase exports of fifth quarter products by 50 per cent and increase overall the number of countries we export to, opening new markets for producers to get the best price for their products. A "cuts not carcases" approach will encourage practices where whole carcases are disassembled and then the different elements sold to wherever is the best market.

In addition, specific projects will be aimed at bolstering the domestic market by enhancing the communication of market information, maintaining consumption levels of beef and lamb in the UK, and ensuring red meat stays at the heart of the "balanced plate" approach to nutrition.

"Through our annual business planning we have identified significant opportunities for beef and lamb which will allow us to expand exports which, in the longer term, help create more sustainable prices for English producers," said Nick Allen, EBLEX sector director.

"We also need to ensure that the domestic market remains robust and so are looking at additional investment in illustrating the benefits of red meat and ensuring the correct information on nutrition and climate change relating to livestock is communicated to industry and the wider public.

"This work is in addition to our existing work in these areas which is seeing resources stretched increasingly thin, while maintaining current projects in research and development, marketing, regional events and the Better Returns Programme.

"It is the first time in 10 years that EBLEX has proposed a change in the levy. Since then, our purchasing power has fallen by around 30 per cent in real terms. We have absorbed this by efficiencies internally. Joining AHDB has also allowed us to make additional savings, reducing staff to an optimal level through core shared services with our sister sector organisations and helping us half the proportion of our income that goes to actually running the organisation. Government LINK funding has now also dropped away while the challenges and issues we face continue to grow. Therefore, the only realistic way to fund additional activity is to look at supplementary income from the levy.

"To put the additional investment into context, the current annual value of beef and lamb traded worldwide is £49.5 billion (GTIS 2009). For a return on the supplementary £2 million invested by the industry, this dedicated EBLEX work needs to capture an additional 0.004 per cent of that global trade for English producers, which we feel is achievable based on global market forecasts and the demand for the quality meat we produce."

These proposals were launched by the Agriculture and Horticulture Development Board (AHDB) today (Friday 19th), and a six week consultation with industry stakeholders and trade associations is now open.

A proposed increase in the UK cereals and oilseeds levy will raise an additional £1.5million which will be invested in eight strategic areas of activity, with a focus on business improvement and delivering industry priorities arising out of HGCA’s recent R&D strategy review.

It is proposed the 2011/12 levy rate be raised by 15 per cent and would be applied from July 1, 2011. On a per tonne basis this would mean a 46p rate for cereal growers, 75p for oilseed growers, 3.8p for dealers, 4.6p for feed processors and 9.5p for other processors.

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