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    Short-sighted processors will kill domestic beef supply chain
18/04/05

“Not all meat processors are mocking NBA endeavours to convince the industry that beef production cannot continue at anything like current levels unless the UK average deadweight price for slaughter cattle rises from this weeks loss making level of 193p to at least 250p.

The Association's efforts to push up prime cattle values is supported by a number of influential processing companies who recognise the danger posed to future supplies by less than cost prices and have either phoned NBA representatives, organised meetings with them, or offered face to face to encouragement to confirm their backing.

"They tell us they are interested in supply sustainability and want to help us get the price message through to retailers as well as other slaughterers who have still to realise that demoralised farmers, faced with persistent losses, will turn their back on beef and leave the industry," explained NBA chief executive, Robert Forster.

"This contrasts with companies which never lose an opportunity to tell finishers that the Association's call for a survival price of 250p will never be achieved - and should not be asked for in the first place."

"What amazes us, and our abattoir supporters, is that these short sighted outfits still believe there is gain in squeezing the financial life out of their suppliers and appear not to realise that if they too are to stay in business they will need regular throughput for their plants."

According to the NBA it would make more sense if its critics joined with it in persuading retailers, particularly the big supermarkets and burger manufacturers, that they too must pay more for beef otherwise they will kill their domestic supply chain and be forced to take in less reliable imports instead.

"On this issue slaughter interests are the same as the farmer's. Each needs more money to survive so why aren't we both pushing in the same direction and combining resources to achieve a mutually satisfactory result," said Mr Forster?

"Retailers are beginning to understand our argument and the NBA wants to see a breakthrough - which would be easier to achieve, and could be earlier arriving, if everyone in the slaughter sector joined in."

"However it beggars belief that short sighted attitudes are so dominant that current ex-farm prices are within an inch of those being paid at this time last year - which means that not even the missing slaughter premium is being taken into account."

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NBA
National Beef Association