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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