Call for beef sector to give fair share of margin to producers

THE National Farmers’ Union Scotland is calling on those within the beef sector to deliver a fair share of the margin back to producers, or run the risk of stalling the recovery in Scotland’s beef herd.

The farm-gate price for beef has fallen dramatically in the past few months.

In mid-May, the average deadweight price for Scot- tish steers sold direct to abattoirs was coming in at 369.7 pence per kilogramme. That is 12.5 per cent lower than the price being paid in May 2013.

In contrast, Kantar Worldpanel figures indicate that during the 12 weeks to the end of April, the average retail price was 776p per kg.

In the same period last year it averaged 721p per kg.

This was an increase of 7.6 per cent.

In April alone, beef retail prices averaged 771p per kg, which is up 7.8 per cent from the same month last year.

That increase in average retail prices for beef has been set against the backdrop of a fierce and ongoing price war between UK retailers.

Given the beef industry’s importance to Scotland – accounting for almost a quarter of its agricultural output – the union is actively engaging with other parts of the supply chain to establish why there is such a disparity in pricing.

It met in private with representatives of Scotland’s abattoir sector yesterday and will meet with all major retailers to discuss the situation at the Highland show in June.

NFUS president Nigel Miller said there was a real need for something to be done now to ensure the future prosperity of the industry.

He said: “The prices farmers are receiving for their cattle are down more than 12 per cent year-on-year and down by almost a quarter on peak trade in 2013.

“We recognise that the extremes in price of last year did cause problems for the chain and created pressures on store shelves,” he said.

“The premium for Scotch beef over Irish product opened up to create a gulf of close to €1 per kg, closing down export opportunities.

“The farm-gate price appears to have been an opportunity for retailers to take margin back without regard to future supply, while demanding more from consumers.

“Loyal consumers have not benefited.” THE Cumberland and Dumfriesshire Farmers Mart had 21 prime cattle forward at their weekly sale in Dumfries yesterday.

Heifers sold to 227.5p per kg and averaged 208.5p, while bullocks peaked at 235.5p and levelled at 192.2p.

There were 56 cattle presented in the rough ring when beef cows averaged 128.4p and dairy cows levelled at 103.7p.

The firm also sold 194 prime hoggs to a top of £94.50 per head and 212p per kg to average 191.6p.

Meanwhile the 183 prime lambs peaked at £116 and 265p to level at 244p.

The 224 cast sheep forward saw heavy ewes sell to £115 for Texels and average £88.54.

The light ewes for sale peaked at £83.50 for Cheviots and levelled at £54.98.