04 July 2015 | Online since 2003

Short term thinking will damage long term farmer confidence



15 May 2014 01:39:16|Cattle,News

Short-term thinking 'will damage long-term farmer confidence'


Short term thinking from meat buyers over the recent dramatic fall in farm gate beef prices will damage long term relationships promised after horsegate, according to the National Farmers' Union.

Less than 18 months since the horsemeat scandal farmers are furious that given the first chance, processors and retailers in the industry with short memories wish to take advantage to force farm gate prices back down to unsustainable levels.

On average, farmgate prices are now around £3.50/kg, back from £4/kg at the same point last year, with producers in the south seeing the lowest prices at below £3.30/kg. These are the lowest prices seen since 2012. This has led to the producer share of the final retail price dropping from 59 per cent to just 50 per cent over the course of a year.

Charles Sercombe, NFU Livestock Board Chairman, said: “After horsegate, all we heard was that retailers wanted to build lasting relationships with farmers and we challenged them to prove it, but it seems that many of their processors have fallen at the first hurdle.

“British beef farmers need the trade to recognise that long term cattle supplies are projected to remain tight and that short termism will come back to bite them.

“Although I recognise that some are working to reduce the volatility and put a base in the market, the rock bottom prices offered by others will make it even harder for processors in the future to secure beef supplies and will damage farmer confidence and undermine relationships across the chain.”

Mr Sercombe continued: “Our farmers need support; processors and retailers need to live up to their promises, and to actively promote our product to British consumers.”

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