Beef needs wide range of markets
Beef needs wide range of markets
NO matter how small they may be, export markets need to grow to create competition in the beef market.
A mono-market is no good for producers, said NBAs chief executive, Robert Forster, at the Royal Smithfield Clubs winter fair in Lichfield, Staffs. Currently 70% of beef is sold as plain British beef.
To create a fragmented market place, producers need to sell to the widest range of markets and variety of labels, whether breed, region or quality they can, and export remains a vital part of this, he said.
MLCs beef strategy manager, Simon Mead, said ensuring farm records are in order was a big step towards developing an export market. "We need the EU to have confidence that our systems for tracking cattle are what we say they are."
Mr Mead believes the strength of sterling should not be an obstacle to getting British beef back into export markets. Other factors are important in business, such as quality, welfare, image and customer service, he said. "We are one of only three EU countries with a national suckler herd." This means we should adopt a positive attitude about our beef, as it has many advantages, he said.
To stimulate competition for British beef, Mr Forster suggested finding a buyer outside the mainstream market or selling processed beef off farm as ways of reclaiming the 35% gross margin made by retailers.
But while looking for extra buyers may help producers, it is unlikely to give buyers more quality cattle to choose from. According to Midland Meat Packers Tim Bastable, subsidies mean more to farm profits than producing quality cattle, therefore making it difficult for buyers to source enough quality product.
Agreeing with these sentiments, Mr Forster said subsidies were causing diversions. "Not least of these is the second BSP claim which encourages animals to be sold at 23-24 months old when they are past their best."
Laying down a challenge to buyers, he said it was up to them to encourage producers to sell stock in their prime at 18-22 months old.