Fallen stock costs set to rise

Fallen stock pick-up costs are set to rise by more than 40% in the south of England, jeopardising collections in some areas.

One operator told Farmers Weekly that renderers Prosper De Mulder had imposed a 43% increase on its prices to collectors. He said that meant some calls for collections would be ignored because they would be too costly to make.

Prosper De Mulder wrote to collectors announcing the price hike would be imposed from 1 November, said the collector, who asked not to be named.

It is a move that could affect thousands of livestock keepers across an area stretching from Exeter to East Anglia.

“It means an extra £25 for each cow collected and an additional £5 a head for sheep.

The increase will have to be passed back to farmers. I have to cover my own costs,” he said.

Farmers outside the fallen stock collection scheme will face a price rise from November. For those signed up to the scheme, prices will not increase until contract renegotiations are completed later this year.

“But I will have to consider every potential pick up and assess whether I can afford to make the collection.

“There may be some calls I simply have to ignore. I am not obliged to pick up stock. It will just have to be left there to rot.”

Commercial director of Prosper De Mulder Group Philip Simpson explained the price rise as “a readjustment”.

“Since 2008, the price of animal by-product disposal has decreased significantly. In the meantime, we have faced increases in fuel and energy costs, coupled with falling values of certain finished products.

“This combination has forced us to review our collection charges. The revised price structure, which comes into force over the next few weeks, is a market correction back to pre-2008 levels.

“We continue to lobby the UK government to implement proposed changes to the Animal By-Product Regulations, which will increase the value of certain materials and thereby achieve reduced disposal costs,” said Mr Simpson.

National Fallen Stock Company chairman Michael Seals said scheme members could see prices rise early in the New Year once contract renegotiations had been completed in December.

“It is a competitive market. PDM Group reduced its price dramatically and is now having to adjust it.

“My advice to collectors is to try one of the other companies,” said Mr Seales.