Mainstream slaughterers have been told they must not drop the price of prime cattle again.

In a strongly worded message to the processing sector, and also to major retailers, the National Beef Association has warned that yet another price fall will demonstrate beyond doubt that they hold beef farmers in contempt.

“The time has come to draw a line. Market prices are nine per cent lower than this time last year and income from male cattle is down by at least £200, or 25 per cent, a head if the now defunct Slaughter Premium and Beef Special Premium claims are also taken into account,” explained NBA chairman, Duff Burrell.

“Finishers are at their wits end because of the losses they are making, breeders are in dread of calf prices at this autumn's sales and large parts of the production sector are already in dire danger of being dismantled.”

“The word on farms, and at markets, is that if slaughterers pull down finished cattle prices by another penny it will be taken as confirmation that home produced beef cattle are no longer wanted.”

The NBA has no doubt beef cattle numbers are already contracting. In-calf heifer numbers are down by as much as 22 per cent in some regions, cow and calf units are being bought by finishers with an eye on the OTM rule change and not by breeders, and the dairy beef bull sector is moving closer to shut down.

“The desperate mood among finishers and breeders must be taken seriously. They feel that their efforts to stick with beef cattle after decoupling are being mocked by the recent, regular price falls that have driven them into serious levels of loss,” said Mr Burrell.

“Over the last 12 months cattle buyers and beef retailers have ignored repeated warnings that farmers will not accept negative prices and another drop last week was very clearly a step too far.”

“If the trade is serious about maintaining UK supplies it must show that is the case by resisting pressure, from whatever source, to drop purchase prices again.”

“If they ignore this it will be interpreted by farmers as a clear message that they should get off the beef production treadmill before their reserves and their labour are even more blatantly exploited.”

“The Association's view is that if processors and retailers cannot support home produced beef then farmers are mugs to stick with it. There is none of the much vaunted partnership in current trading arrangements because producers are the only ones not making money.”

“Farmers are telling us that no one with any businesses sense stays with an enterprise that is clearly losing money.”

“They are no longer prepared to subsidise consumers, retailers and slaughterers by carrying losses themselves and both slaughterers and supermarkets should take this message seriously,” Mr Burrell added.

Slaughterers will be looking for heavy carcase cows