14/03/05
Unfounded talk of certain delays in the repeal of the OTM rule
will encourage importers to commit themselves to manufacturing
beef deliveries well beyond the expected September return of domestic
cows to the commercial market, the National Beef Association has
warned.
It wants the Jeremiahs and pessimists in the industry to realise
that uninformed predictions of a likely failure in Defra's efforts
to secure an early autumn start for the return of post-August 1996
cattle could undermine the price of the first cows offered for
sale and deprive farmers of a much needed lift in income.
"We do not understand the shortsightedness of this dismal
chorus. Defra has set itself a daunting timetable if the target
of a September start is to be achieved but has stuck to its task
and so far, despite repeated predictions to the contrary, is on
track to achieve it," explained NBA vice-chairman Frank Momber.
"The hurdle of the FVO inspection mission in June has still
to be negotiated and it will not be until a positive report is
in hand and there is a successful conclusion to the FSA's board
meeting in July that Defra will be able to nominate a start day."
"However there is no reason for the industry to anticipate
bad news, every reason for it to look forward to good, and it should
give up looking on the black side because it is only creating a
financial rod for its own back."
"Importers in Ireland are much more likely to begin re-directing
beef in late summer that would otherwise be targeted at the UK
if they feel domestic cows will be on offer in early September
- and there is no advantage in encouraging them to think otherwise
because excessive supplies of both imported and domestic beef on
the market this autumn would get our post-OTMS recovery off to
the worst possible start."
And the NBA is keen for domestic traders to be lined up and ready
to go well before the green light is switched on.
"We need to be focused, not negative, and be aware that Defra
will nominate a start date as early as it possibly can," said
Mr Momber.
"If our cow beef processors are pawing the ground and ready
to sell then an average deadweight price of around 120p for cows
will be immediately realistic."
"But if there is more unnecessary noise from the pessimists
some of them could be distracted and not be as ready as farmers
would like when the gun for the release of cow beef on the market
goes off."
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