Beef price fall could impact on long term supply

NFU livestock board chairman Alistair Mackintosh has called on the supply chain to work together to boost confidence in the sector and ensure long term supply is not adversely affected following recent falls in the beef price.

Mr Mackintosh said: "Indications point to a global shortage of beef and, as a result, I would expect prices to remain firm in the long term. However, in recent weeks we have seen a seasonal oversupply of cattle which has led to downward price pressure. With this in mind we, as producers, need to carefully consider how and when we market our stock as continued short-term oversupply will place even more pressure on the existing price.

"It is imperative that the processors provide the industry with the right signals to invest with confidence in a future in red meat production. If they are truly concerned about the supply business they need to recognise producers need these clear long term signals and that negative prices can have a major impact on long term supply.

"Although the price has been firm and an improvement on this time last year the processors must realise that beef producers have not seen extra returns, as the increase has been eroded by rising input costs, and recognise that these extra costs need to be covered."