Close co-operation needed to maintain beef resurgence

By Robert Davies

BEEF prospects are improving as increased consumer confidence pushes consumption back towards pre-BSE levels.

But closer co-operation between producers, processors and retailers is vital to maintain the momentum, farmers attending a recent Asda/ABP Group conference at Shrewsbury heard.

Consumers were choosing beef again thanks to the growing commitment of farmers, processors and abattoirs to farm assurance, and to the strict and costly auditing of processing plant practices, said Richard Cracknell, managing director of ABP Group.

UK beef consumption now exceeded supply by 200,000t/year. This presented a marketing opportunity, especially with retailers like Asda who were dedicated to selling British beef.

But with housewives buying their meat from the big multiples the meat supply chain had to get closer to them, he maintained.

Such retailers took only 50% of a beef carcass. To counter that, it was vital to increase the use of British beef in processed products like pies, and to sell more through multiple outlets, he believed.

“This would mean a better but not adequate return for the manufacturing cuts the supermarkets cannot sell,” said Mr Cracknell.

Beef consumption in the EU was forecast to be 7.2 million tonnes this year, within 3% of the pre-BSE level, Raymond OMalley, chairman of the EU Beef and Veal Standing Group told the meeting.

Around 5.5 million cattle had been removed from the EU food chain by the OTMS, calf slaughter and early marketing schemes. This was the equivalent of 1.6 million tonnes of beef/year, reducing production to 7.4 million tonnes.

“Essentially the EU beef market is in balance,” Mr OMalley said. “The immediate outlook is positive, and Agenda 2000 changes will bring stability and certainty for six to eight years.”

But producers must face up to the challenge of other cheaper meats. Beef must be produced more efficiently and marketed better, with catering a key growth area to be exploited. Farmers should be paid better for meeting the right specifications, he added.