OTMS rates must rise, says NBA

THE NATIONAL Beef Association has called for a 40% rise in compensation payments for animals sold into the Over Thirty Months Scheme.

The calls has come following the Department of Health‘s decision to delay further the scrapping of the OTM scheme.

“If the government will not dismantle restrictions it should revise the compensation payments for animals taken for compulsory destruction,” said the NBA.

The economic injury to the industry triggered by the DoH‘s decision must be limited, it added.

Compensation payments were cut by 20% last year on the grounds that the drop reflected a cross-EU fall in the value of cull cows, said NBA chairman Robert Robinson.

But they needed to be quickly restored now that the market had moved in the other direction.

“Barren cow prices in all EU countries have risen sharply since intervention stores were emptied.

“Supplies of manufacturing beef have pushed prices in Eire to the sterling equivalent of 149p/kg dw – 24% higher than this time last year.”

But cow compensation levels in the UK were just 86p/kg dw, said Mr Robinson.

Farmers were not only unable to sell their animals but were receiving compensation 42% lower than the market price in an EU country which sells cows of similar type to the UK.

“The government must treat the owners of these cattle fairly,” he said. 

“It must make sure the owners are fairly compensated by quickly lifting the fixed rate payment by at least 40%.”

A DEFRA spokeswoman said: “We are aware of the NBA‘s comments but changes in rates cannot be made without an agreement from the EU Commission.”