Processors told to focus on delivering better prices if red meat industry wants to succeed

The Ulster Farmers' Union calls for better prices and greater transparency
The Ulster Farmers' Union calls for better prices and greater transparency

Processors 'must focus' on delivering better prices and greater transparency if the drive to build a better red meat industry is to prove successful.

This is the message from Ulster Farmers’ Union (UFU), beef and lamb chairman, Crosby Cleland.

He says while recent increased prices are welcome, farmers can't lose sight of the fact that input prices are starting to rise.

Recently, prices for beef and lamb have improved. Much of this is down to the weakness of sterling, which has in turn created export opportunities and made importing cheap meat less attractive.

Mr Cleland said: “This will limit any boost to producer margins.” He said farmers would try to counter rising costs by being more efficient, but stressed that processors must accept the need to deliver strong prices through uncertain times.

“This uncertainty reflects concerns surrounding Brexit and the continued reduction in BPS payments on many farms.

“These and other things are having a big impact on producer decision making. This makes viable and stable prices vital if processors want long term security of supply,” said Mr Cleland.

'Greater commitment'

The UFU says that while some processors are already working with farmers to improve understanding of the supply chain, others need to show a greater commitment to transparency.

Mr Cleland continued: “Historically farmers have had few opportunities to understand how the processing sector works.

“This has not made for good relationships between farmers and those who buy their livestock. Processors need to be more open about how stock is processed, the marketing of red meat and also returning more specific feedback to farmers on their livestock so that farm production can be improved.

“If processors commit to building better relationships with farmers, through improved transparency, this industry can deliver better returns for everyone,” concluded Mr Cleland.