Beef summit: Farmers and processors to work on industry code

Farmers and meat processors agreed to draw up a voluntary code of conduct for the beef industry at a government-led summit.

Representatives from the farming unions and the British Meat Processors Association (BMPA) will meet over the summer to discuss a code to increase transparency.

It would cover how trading terms, abattoir specifications and penalties are communicated to beef producers.

At the Westminster meeting, both sides approved the idea in principle but said they would continue discussions from the past few months to decide what it would cover.

NFU livestock board chairman Charles Sercombe said he was satisfied things were moving in the right direction to make a difference.

“We want to work with the processing industry to get openness and transparency in terms and conditions, have consultations if they want to change those and agree a notice period that works for all sides.

“I would not say everybody was in complete agreement about everything that was discussed, but there was a general consensus that the price of beef at the moment was unsustainable at a farm level and is sending out the wrong signals to beef producers in the long term.”

BMPA director Stephen Rossides said a voluntary code would not be prescriptive or enforced industry-wide.

“What everyone did agree on is the market is volatile,” he said. “That is not really very helpful to stable, sustainable production and producer confidence.”

“We are up for this code but it is not about negotiating those terms, it is about being open with them.”

Mr Rossides said that many of the larger, professional meat processing companies were already following good practice.

NFU Scotland president Nigel Miller also said he was working with Scottish meat processors to create their own code of conduct.

More than 20 representatives from across the supply chain attended the meeting, chaired by farming minister George Eustice at Defra’s Noble House.

Mr Eustice said everybody came away with a better understanding of what was driving the current problems and a few tangible things to improve.

The nine biggest supermarkets were invited and set out the work being done through the individual producer groups.

The farming unions challenged the retailers to consider price-cutting promotions to boost consumer demand and clearer labeling for British and foreign meat on shelves.

Andrew Opie, director of food and sustainability at the British Retail Consortium, said the meeting was worthwhile and positive, as it managed to gather a large number of interests round the table.

“We were clear that the beef supply chain is absolutely at the heart of what we do,” he said.

“We want a strong, vibrant beef sector and we were happy to share what we have done with processed meat, such as the voluntary code for country-of-origin labeling for meat.”

Eblex chairman John Cross and sector director Nick Allen represented the levy board at the meeting and explained the current market trends.

Mr Eustice discussed how Defra could work with Eblex to open more export markets to help carcass balance and consider achieving a Protected Geographical Indication for British or English beef.

The delegates also debated creating a genetics database to boost productivity in the longer term and whether regional development cash could be used to help the beef sector specifically.