Strategy of British beef announced by NFU

A new strategy document to highlight solutions to achieve long-term profitability and mitigate against market volatility within the beef sector is being developed by the NFU.

The NFU’s beef group will drive the strategy document forward amid concerns over the low beef price, which is falling well below the cost of production and the price paid last year, and fears of high feed costs expected this autumn and winter.

Livestock board chairman Alistair Mackintosh said despite positive long-term signals within the sector farmers had real concerns.

"I believe that British producers have an excellent story to tell and the long-term signals for the future of the industry are encouraging," said Mr Mackintosh. "British beef is second to none in terms of quality, its provenance and food safety as well as the many environmental benefits felt from its extensive production.

"However the present price situation is unsustainable, particularly if we are to meet our future challenges and demands for beef with an increasing world deficit being predicted. We need to address the issue of volatility and price which is currently falling below the costs of production."

During the meeting the NFU beef group agreed to produce a strategy document with three key aims:

• To identify the present problems

• To find solutions to ensure more long-term profitability

• And to highlight where all members of the supplychain can have a positive impact on the future of British beef production

Mr Mackintosh said: "It is essential that we end up with a document that not only highlights the failings of the current situation but also the positives of the present supply chain model. We need to ensure the strategy enables all members of the supply chain to step up to the mark and have a positive impact on the future production and supply of British beef.

"I envisage this strategy document will offer a number of potential solutions which will then be used to address the present supply chain failings. It will also be used as a positive tool in discussions with the whole supply chain as well as politicians and other key decision makers.

"With the CAP reform due in 2013, now more than ever, it is essential that we identify how the market can mature and operate efficiently and effectively for the benefit of all. Ultimately this is about delivering profit back to beef producers."