Abattoirs undercutting market in virus zones

By James Garner

ABATTOIRS in infected areas have been accused of undercutting the market by offering farmers within foot-and-mouth restricted zones lower prices than those outside them.

In its latest UK Market Survey the Meat and Livestock Commission says it has heard of large price differences between “dirty” and “clean” areas.

Some abattoirs are complaining they are struggling to compete for wholesale meat contracts as a result.

Anecdotal evidence from producers within “dirty” areas suggests that stock can be sold, but at a price.

Quotes for old-season hoggets are as low as 160p/kg dw, about 40p below “clean” levels.

For cattle, some abattoirs are apparently offering a derisory 135p/kg dw nearly 35p below the average R4L price of 168p/kg last week.

According to the National Beef Association there are up to 60,000 prime cattle held up in infected areas.

The large numbers waiting for slaughter are being used to pressurise the market, says the NBAs Keith Redpath.

Rose County Foods and ABP, both with plants in infected areas, denied that there is any price difference between the infected and non-infected areas.

Meanwhile, new-season lamb prices plunged by another 20p this week due to old-fashioned supply and demand.

Numbers are beginning to build on-farm, despite most supermarkets switching to British product this week.

The 20p slip took prices down to 225p/kg dw average, with some quotes as low as 200p/kg dw.

Commentators fear its a bear market with supply outstripping demand for the rest of the season.

Juliet Davies, lamb buyer for HM Bennetts in Andover, Hampshire, says slack consumer demand means volumes arent being shifted. Values might ease a bit more next week, she says.

One trade insider told FARMERS WEEKLY that only Sainsbury had been stocking new season lamb for the last couple of weeks.

The other retailers had been using cheaper hoggets.

While UK prices are in the doldrums, demand for lamb meat on the Continent is booming, so much so that an extra 6500t of New Zealand lamb has been shipped to Europe.

Britain too, has had its share of Kiwi lamb with UK importers bringing in nearly 35,000t.

Trade across the channel is buoyant, with French lamb selling for 357p/kg dw and Irish lamb at 304p/kg dw.

Meanwhile, Welsh upland farmers are desperately worried about finding a domestic outlet for 1m lightweight lambs normally exported to southern Europe each year.

This trade is worth 100 million a year to the country.

The Farmers Union of Wales is meeting all major retailers, local authorities and the Ministry of Defence to urge them to buy lambs weighing less than 12kg carcass weight.

It is also discussing with the Welsh National Assembly about possible intervention buying, or, as a last resort, even a welfare disposal scheme.

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