ABP spells out where the money goes

By FW Staff

JUST 43% of the retail value of a typical steer goes to the producer, farmers were told on a visit to ABPs plant at Shrewsbury this week.

The group, led by NFU livestock chairman David Williams, was taken through the costings by ABP managing director Richard Cracknell. He wanted to show that the company was not profiteering, although only £480 of the £1114 retail value of a 320kg deadweight beast would end up in the visitors pockets.

ABP charged £358 for killing, boning and packing, and retail packaging and palleting. The final £1114 retail value was understood not to include distribution and retailing costs.

The group was also told that extra costs of dealing with specified risk material and lost income from the “fifth quarter” – items whose use and sale is now prohibited under BSE-related rules – totalled some £104 for a steer of that weight.

“While everyone else in the chain is getting a margin, farmers are losing money at these prices,” said Mr Williams.

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