Signs are that farmers are heeding advice on OTMS
One week after the ending of the ‘Over Thirty Months Scheme’ (OTMS) and it seems farmers are heeding advice not to flood the market with older animals.
That’s according to the North East NFU following concerns that large numbers of older cattle coming on to the market could cause downward pressure on an already depressed price for beef.
According to chairman of the regional livestock board and Northumberland farmer, Malcolm Corbett, he is heartened by the way farmers have responded.
“Hand in hand with the lifting of the OTMS is the lifting of the beef export ban and this is not expected until April,” he said.
“As a result, there was a risk that too many older cattle would come on to the market before sufficient outlets had been developed.
“It will definitely take time for new markets, including export markets to develop, so I’m delighted that farmers have taken advice and seem to be holding back as much as possible.”
The message from processors is that they need older cattle to offer reasonable amounts of meat. As a result, ABP for example, are requesting at least ‘P’ grade animals.
“This highlights the fact that producers need to think carefully about which market they are supplying - especially given that even in an orderly market the UK has the potential to produce 4,000 tonnes of mature beef a week,” added Malcolm.
“Having said that, all the signs are that new markets are already developing, with supermarkets already showing interest in using mature beef in some of their lines very soon.
“Our aim is to continue to work with retailers and processors long-term to achieve greater co-operation and less confrontation.”