A Warning To The Processors

UK - The Scottish Beef Cattle Association has issued a warning to the processing sector supplying supermarkets with beef.
calendar icon 23 August 2007
clock icon 2 minute read

The move follows this week's announcement that legal notices have been sent to the multiples asking them to provide details of their trading methods.  SBCA chairman Jim Kennedy said:  "We need to be receiving support across the board from the abattoirs to instill confidence into a diminishing sector".

"The continuing importation of beef products from abroad may well fill supermarket shelves but it will not lead to a continuation of reliable numbers of Scottish cattle for the long term.  Short term processing gains from a supply of inferior beef will result in the destruction of the industry.  Every supermarket now has pictures of farmers on their products but what does this really mean for the producer? Is he guaranteed a fair price to cover production costs?  Taking present prices in the deadwieight sector this is not happening.  Beef producers need to be getting more than 220p/kg.  If there is no tangible form of encouragement coming from the processors to farmers then why should they continue in a relationship that's only outcome is an increased overdraft?"

Added Mr Kennedy:" Meat plant operators and supermarkets must acknowledge the true cost of production and pay accordingly.  Now is the time for the processors and supermarkets to put stability into the marts and deadweight sector as primary beef producers are facing difficult trading conditions for suckled calves  at the same time as their customers are encountering rapidly rising input costs.  A show of support now will help define the beef industry's future."

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