Meetings to be held on tackling falling beef prices

For the second spring in succession, those selling prime cattle in the early part of the year have seen beef prices fall below profitable levels and regular marketings were disrupted by delays and longer waiting times at abattoirs.

NFU Scotland has called on Scotland’s abattoir sector to work closer with producers in efforts to ensure Scotland’s beef cattle meet the required market specification.

The Union also reminds meat processors that factors out with the control of farmers can make getting the shape, correct weight and right amount of fat and marbling in the carcase extremely challenging.

NFUS has said it will be holding meetings around Scotland in the autumn to take this challenge head on. It has invited representatives of the Scottish Association of Meat Wholesalers (SAMW) to come along to the meetings.

This will allow beef producers to get round the table with abattoirs and processors to discuss the problems as well as the potential solutions to growing the market for Scotch beef.

NFU Scotland Livestock Committee Chairman Charlie Adam, a beef farmer from Aberdeenshire said: “Hitting the right specification for modern markets is a hugely important aspect of beef production but not one without its challenges. For the second year in a row, long waiting times at abattoirs has meant that many farmers were forced into delivering out of spec cattle. For any finisher, it is infuriating to see your prime stock drift out of spec because you have had your order delayed or abattoir specifications have changed.

“Falling out of spec is a concern for every beef finisher but it becomes critical for a business if it happens in a falling market. Our hard pressed producers have seen a huge fall in their price year on year while the retail price for beef on shop shelves is little changed.

“If farmers need a reminder on the shape and finish wanted by our processors, the live auction system provides a transparent marketplace where farmers can see exactly what is in demand. Farmers providing cattle to the live ring understand exactly what sells.

“We cannot take the issue of cattle specifications in isolation and must consider it amongst all challenges facing the beef industry. Every link in the beef chain must play its part, from farmers producing in spec cattle to processors and retailers producing well packaged and labelled Scotch beef that appeals to the consumers at home and abroad. The pressing need to grow the consumption of Scotch beef on all levels will not be solved by playing one element of the industry against the other.

“For this reason, NFUS is taking a proactive approach by holding meetings around Scotland in the autumn to take this challenge head on. We are inviting SAMW to come along to the meetings. This will allow us to get round the table and drive forward a shared ambition in growing and adding value to sales of Scotch beef. I would hope that building and delivering a premium for Scotch and exploring new markets is as much in the interests of processors as it is for producers.

“As well as discussing how we grow consumption at home, we would welcome a discussion on how the industry can work together to increase our international presence for Scotch beef. At this moment, overseas sales of our iconic Scotch beef brand account for less than six percent of our market.

“Working with all parts of the sector, the potential to increase the amount sold outside the UK is huge. Farmers are willing to play their part and other must step up as well.”