PUT THE POLITICIANS ON THE MINIMUM WAGE AND WATCH HOW FAST THINGS CHANGE
Civilisation has operated in two ways - To make one part of society more affluent and the other more wretched than would have been the lot of either in a natural state
There are Natural Rights and Civil Rights. Life, Liberty and the Pursuit of Happiness
Where Our Power to Execute Our Natural Rights is Perfect, Government has No Legitimate Jurisdiction
When the Forces for War are Greater than the Forces for Peace   Then the World is in Danger
Politics is not a Dirty Word. It is a Way of Life. How is Your Way of Life Today ?

BEEF FOR FLAVOUR VARIETY AND VALUE FOR MONEY

Virus illuminates lack of price transparency within the beef sector

Covid-19’s impact on beef market volatility has brought into focus the lack of price transparency within the supply chain.

 

Share This

Virus illuminates lack of price transparency within beef sector


Plagued by lack of data besides the generic average price and outdated trade and consumer figures, NFU Scotland has called for a fresh look at the problem once the Covid-19 outbreak ends.

Writing to Defra Secretary George Eustice, NFUS president Andrew McCornick summarised the market situation which has seen strong retail sales of beef but falling farmgate prices for beef cattle.

In a pointed attack on the processors he said: “There is huge frustration being expressed by beef farmers right across the country on what is happening to beef prices and this is a direct result of the lack of transparency in the meat industry.

“Transparency is one of the conditions required for a free market to be efficient. The further the animal goes from the farm gate, the less information is made available on price.”


Read More

Beef farmers left angry over 'subsidised' Irish beefBeef farmers left angry over ‘subsidised’ Irish beef
Covid-19 highlights the importance of the domestic supply of feed meatCovid-19 highlights the importance of the domestic supply of feed meat
Levy boards launch beef campaign in bid to address lockdown red meat turbulenceLevy boards launch beef campaign in bid to address lockdown red meat turbulence


Data available

However, Scottish Association of Meat Wholesale executive manager, Martin Morgan, said considerable market information is published regularly by whole industry bodies such as AHDB and Quality Meat Scotland.

He said: “Extensive commercial reporting by organisations such as Kantar also make it clear that prices across the retail sector are under severe pressure.

“In addition to what we are seeing in the UK market, of course, the exact same retail supply chain pressures are being experienced right across the EU and the USA.”

Underwritten contracts

Further uptake of underwritten contracts within the beef industry could help address the lack of price transparency.

These contracts would see farmers receive an agreed-upon price for their cattle rather than being ‘at the mercy of market prices on the day’.

Adam Buitelaar, managing director of the Buitelaar Group, said: “There is no transparency at all in the beef sector and the volatility of beef prices cannot be stood any longer.

“We must have a stable market place.

“Over the past 10 years, Buitelaar has demonstrated underwritten contracts work for the beef industry, processing more than 250,000 cattle, and these contracts afford farmers the tools to think business-mindedly about their enterprise.

“It has become common practise within the poultry and pig sector and would offer some much-needed consistency for beef farmers.”

For pig and poultry producers, the set prices enable farmers to financially forecast and plan ahead, rather than make business decisions on speculative market prices.

Similar Recent Posts by this Author:

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email