Abattoirs caught out by calf aid reprieve

17 November 1998

Abattoirs caught out by calf aid reprieve

By FWi staff

THE reprieve of the calf slaughter scheme announced by the Government yesterday (Monday) caught out some abattoirs and has forced them to change their plans.

The extension of the Calf Processing Aid Scheme (CPAS) was confirmed by Agriculture Minister Nick Brown as part of the £120 million aid package for the farming sector.

Mr Brown told the House of Commons that the CPAS scheme would continue beyond 30 November – although at a reduced rate of £55.85 per head rather than £78.

Abattoirs had argued for the scheme to be scrapped, and some companies were making budgeting arrangements on the basis of processing near-worthless stock for manufacturing-grade beef.

Richard Cracknell, president of the Federation of Fresh Meat Wholesalers, is reported in The Herald today as saying that the extension of the CPAS will almost certainly create a shortage of beef.

But many processors were equally opposed to the ending of the CPAS, with some senior figures claiming its abolition would displace meat from prime cattle with “broiler beef”.

Other officials within the industry now believe that the extension of the CPAS will cause confusion in the marketplace.

Their argument is that the reduced aid rate will mean a financial squeeze for both suckled calf sellers and dairy farmers.