Farming News - NFU challenges Polish beef fears

NFU challenges Polish beef fears

 

Farmers have sought to counter claims that a recent dip in cattle prices is the result of an increase in imports of Eastern European meat. Last week the NFU said "many have been quick to point the finger at Polish beef imports" over weakening cattle prices, but there is scant evidence of such an influx.

 

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In fact, official figures show that between November 2012 and last year, though the total amount of beef imported into the UK rose by seven percent, the Polish share fell by the same amount. Of the 215,100 tonnes of beef imported into the UK between January and November 2013, almost half (144,446 tonnes) came from Ireland, where there was an increase in production last year.

 

Last week, the NFU did reveal that a ban on religious slaughter in the summer led to more Polish beef entering EU markets in general, but pointed out that Polish imports to November (the latest date for which customs figures are available) increased by 384 tonnes on the year, compared to an increase of 1,783 tonnes from Brazil, 2,082 tonnes from Namibia and 4,002 tonnes from Botswana in the same period.

 

The union said that greater availability of beef from abroad may have a dampening effect on domestic prices, "especially for plainer animals," though estimates from the Irish Food Board, which point to a 7 percent increase in export availability and identify the UK as a key export market has the potential for a greater effect.

 

NFU added that the situation in the domestic market could also be playing a part; the Union suggested, "The messages we are receiving would suggest that with a mild winter, many of the processors have well stocked chillers and with demand normally lower in January, they don’t need to slaughter as many cattle to satisfy demand."

 

The union said that figures suggest the decline of the beef herd may be slowing in the UK, and that Defra figures slated for release in March should build a clear picture of the industry's health.

 

National Beef Association chief executive Chris Mallon said the memory of the horsemeat scandal, which led to many consumers seeking out British meat, has proved a boon for the cattle industry.

 

NBA spokesperson Mallon said market logic dictates that if demand is maintained whilst the number of cattle falls, then prices should at least remain stable. However, NFU said that in the short term, after reduced prices in the last quarter of 2013 gave many farmers an incentive to keep cattle for longer, "[an] increased supply at a time of lacklustre demand can only have a dampening effect on price in the short term, especially for cattle which do not meet supermarket spec, which face heavy deductions."

 

The Union called on actors further down the supply chain including processors and retailers to forge long-term relationships with farmers and make commitments to ensuring sustainable pricing models, to protect the domestic industry's future.

 

AHDB figures show Slaughterings in 2013 fell to their lowest for 65 years.