National Beef Association Newslette r

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1 National Beef Association Newslette r THE INFORMATION AND OPINION IN THIS NEWSLETTER IS DISTRIBUTED FOR THE USE OF NBA MEMBERS. THE NEWSLETTER IS PUBLISHED BY NATIONAL BEEF SERVICES LIMITED. The Mart Centre, Tyne Green, Hexham, Northumberland, NE46 3SG Tel: info@nationalbeefassociation.com 12th February 2016: Issue 6 NBA NEWS: Directors Weekly Report SBA NEWS: SBA Warn of Real Financial Hardship faced by Beef Producers 20m Scottish Government backing to ease cash flow concerns. 2 UK red meat production up during Mobile Phones Ranked as Top Threat to Romance this Valentine s Day (but Steak is the favourite meal) 3 AHDB Outlook Conference addresses market predictions Cross Compliance guidance 4 AHDB shares information on beef and lamb consumer work NBA DIARY 5 Co op launches integrated calf scheme NBA MARKET REPORT 6 Coveney only set up the Beef Forum as a hollow political gesture AHDB (Meat Services) and LMC market prices 8 Beef in greater demand in China than sheep meat 13 BEEF INDUSTRY NEWS: Bovine TB Control Gets 7 Million Research Boost 9 Advertisements 14 on 1

2 NEWS AND NBA DIRECTORS WEEKLY REPORT This week I have attended many meetings discussing the supply chain where I have been told that to cure all that ails the beef trade we need to be more efficient and work in partnership. It is my own belief that the vast majority of farmers are as efficient as they can be given the environment they trade in, we have showed great progress over the last decades and we have shown that we react well to the changing fashions of the market. When the demand was for more Angus, we produced more, when carcases were to have better conformation we did that, when we were told to produce heavier carcases we did that too. The problem is we cannot react like poultry there is no point in giving the beef finisher six weeks notice of spec changes we can do nothing about it, we need to know what the specification is before the cow goes to the bull. For a partnership to work their needs to be a 50:50 relationship, in the farmer processor relationship no one would say that it an equal relationship. We need to understand each other better and have more transparency in the relationship and that needs trust. Bluetongue Europe was free of bluetongue before 1999 but since then there have been regular incursions from the Mediterranean coast of several serotypes (1, 2, 4, 9, 15 and 16), and in 2006 BTV8 was first identified in northern Europe with disease subsequently occurring in the south east of England in Although in the past considered primarily a disease of sheep, BTV8 has also caused clinical disease in cattle, in addition to goats and camelids. There is no zoonotic risk and meat and milk are safe to eat. In autumn 2015 BTV8 was again identified in the Massif Central region of France after having had no disease reported in the EU since The initial case was a clinically affected sheep which was killed, and since then infected animals have been identified on more than 135 holdings in the region, the vast majority of the animals showing no clinical disease. Thousands of cattle (in excess of 39,000 on 1329 holdings) have been tested across all of France. A UK disease control strategy has been published which confirms vaccination as the best means of control through an industry led voluntary action by farmers in conjunction with their private veterinary surgeons. Risk assessments were done on the possibility of spread to the UK in 2015, which was considered to be negligible by windborne spread of midges, although there was the possibility of infection emerging through the import of infected animals (post import testing of animals has been done). The transmission risk in 2016 will depend on the effectiveness of the control measures, including use of vaccine, instituted in France in 2015, and if infection is again identified in France in 2016, on its spread from April to May onwards (depending on winter and spring temperatures and wind strengths and directions). The NBA along with other industry bodies have been working to evaluate the risks and open discussions with vaccine manufacturers. BVD Free The BVD Free scheme continues to gather momentum and is getting to a stage where rollout is near. The target is to get over 65% of cattle farms to voluntarily sign up and become members of the scheme. AHDB have allocated resources and personnel to this project and it has wide ranging support from auctioneers, the dairy sector and beef sectors, it has taken too 2

3 long in coming but its importance will be of no surprise to those farms that have dealt with BVD and dread it being bought back into their herds. SBA NEWS SBA Warn of Real Financial Hardship faced by Beef Producers Scottish Government's System Failure Wreaks Havoc with BPS Payments The Scottish Beef Association (SBA) have raised grave concerns about the prospect of all BPS payments being made to eligible beef producers, which are expected before the deadline at the end of April. Despite a pledge made in November by Richard Lochhead, Cabinet Secretary for Rural Affairs, Food and Environment, to deliver payments to most farmers under the EU s Basic Payment Scheme by the end of January, statistics published by the Scottish Government at the end of January showed that only 24% of the eligible claims had been committed as at a close. The Scottish Government s target was for 50% of the payments to be completed by the end of January, so they are falling half way short of their objective. With the high cost to the farming community coupled with the exceptionally poor performance of the Scottish Governments computer system it is more and more evident that a great number of eligible beef producers are likely to face extreme financial hardship, says Scott Henderson, Chairman of the SBA. Scott goes on to say: Instead of making the initial payment by the end of March, it is envisaged that this could now be delayed most likely to the end of May or beyond. This raises more concerns with the consequential delay in payment of the Less Favoured Area Support Scheme (LFASS), together with the Calf Scheme Money. The computer programme, developed by 22 civil servants, specifically recruited for the project, is proving to be an utter failure in spite of its 185 million price tag. A comprehensive list of failings show the system not to be fit for purpose with many farmers having received confirmation of correct payments, only to be later flagged as validation errors created by computer inaccuracies. Figures quoted in an article by Farm North East show that it is estimated that the system is costing 12,000 to deliver each payment. Calling for an enquiry, the Scottish Beef Association (SBA), at the very least, will be looking to the Scottish Parliament s Public Audit Committee to launch an investigation into what has been an unmitigated financial disaster for beef producers. The Government has failed to provide beef producers with firm dates of expected payments before the end of the year, and it also looks increasingly unlikely that the Scottish Government will meet their own deadline to make the promised final payments by the end of April. 20m Scottish Government backing to ease cash flow concerns. The Scottish Government is taking further action to ease cash flow issues in Scottish agriculture. 3

4 Rural Affairs Secretary Richard Lochhead has announced a scheme backed by 20 million Scottish Government funding to enable more farmers and crofters to access loans whilst waiting for their Common Agricultural Policy (CAP) payments. Speaking at the National Farmers Union of Scotland (NFUS) annual conference in St Andrews, Mr Lochhead confirmed that more than 7,300 payments have now been authorised, which equates to about 40 per cent of the 18,000 or so eligible claims. He also stressed that the Scottish Government is continuing to do everything in its power make payments as soon as possible against the challenge of implementing hugely difficult CAP reforms. The Rural Affairs Secretary said: I fully recognise the cash flow issues facing Scottish agriculture as a result of difficult market and weather conditions coinciding with the biggest CAP reform ever. The Scottish Government continues to do everything in our power to get first instalments out to as many people as we can by the end of March and the balance of payments as soon as possible after that. We are making progress. However the extreme complexity of the policy we agreed with industry in Scotland which is being delivered by a brand new IT system that we are constantly working to improve means it is taking longer than expected to process applications and I am aware that as a result some farmers and crofters are facing hardship. That is why the Scottish Government is taking further action to ease cash flow pressures in the sector by earmarking up to 20 million to ensure those most in need can access the credit they require until their payments come through. We will work with NFUS, banks and others to finalise the detail of the scheme and ensure it is available as quickly as possible and simple to access Cross Compliance guidance The 2016 Cross Compliance guidance, which sets out the rules made up of Statutory Management Requirements (SMRs) and Good Agricultural and Environmental Conditions (GAECs), is available on the Rural Payments and Services website. The Cross Compliance rules continue to apply as they did in 2015, with just one small change to remove the 2015 exemption from GAEC 7. Cross Compliance applies for the whole of the calendar year from 1 January to 31 December 2016 and to all the land within a business, including seasonally rented land and common grazings. In order for applicants to receive full payments they must meet the Cross Compliance rules for the following schemes: Basic Payment Scheme (including Greening and Young Farmer payments) Scottish Suckler Beef Support Scheme (Mainland and Islands) Scottish Upland Sheep Support Scheme Less Favoured Area Support Scheme (LFASS) And any payments relating to Scottish Rural Development Programme measures, including: Afforestation and creation of woodland Establishment of agroforestry systems Agri Environment Climate Scheme options Organic farming Animal welfare Forest environment and climate service, and forest conservation Beef Efficiency Scheme 4

5 Please see the Rural Payments and Services website for more detailed information or to create a printable version of the guidance. 5

6 2016 NBA DIARY Monday 15th February Tuesday 16th February Wales North Wyke meeting GB Livestock Core Group Meeting Tuesday 16th February Beef Expo Meeting, Bakewell Wednesday 17th February BVD FREE Launch Implementation Group meeting Monday 22nd February Tuesday 23rd February Tuesday 8th March Tuesday 15th March South West NBA AGM, Fingle Glen Golf Hotel, Tedburn, St Mary at 7.30pm NBA Farm Walk, Upper Coton Farms, Northamptonshire, NN6 8RE at 1pm Pedigree Breeders Committee Meeting, Newton Rigg College NBA Board Meeting, Hexham Friday 20th May BEEF EXPO, Bakewell Market Tuesday 14th June Policy Meeting, Welshpool Tuesday 21st June Board Meeting, Harper Adams University Tuesday 13th September Board Meeting, Hexham Tuesday 13th September NBA AGM, Hexham Tuesday 18th October Policy Meeting, Cullumpton Tuesday 6th December Board Meeting, Hexham Entries in Red are open to all NBA Members Entries in Green indicate Meetings attended by NBA representatives Entries in Blue indicate NBA Committee Meetings 6

7 NBA MARKET REPORT (written on Friday at 4pm) There have been no dramatic movements either way with the finished cattle trade so far in February. Bid prices are at least stable but grids, VIA, various deductions and upper weight limits are reducing the value of cattle. For the week ended 6 February the average price for all prime cattle moved up a penny to 329.1p/kg. It seems after the poor December, prices have found their bottom level but there is little chance of a jump in price in the near future. On the up side there are no queues at abattoirs and cattle are moving easily but the power in the market is with the processors. Interestingly in a conversation with one of the retailers this week on the topic of dairy bred beef he stated he could not understand why fat class 2 was being penalised, modern chilling processes do not damage beef of that fat class and therefore as far as he was concerned it was simply a processor decision. AHDB estimates suggest that in total prime cattle numbers coming forward were up 400 head on the week earlier, despite more steers coming forward prices were still up a penny on the week. The R4L average increased for the first time this year to 341.8p/kg. The overall heifer average also moved up a penny, but those meeting R4L levelled on the week at 340.5p/kg. Overall young bulls came back sharply while R3 s levelled at 323.8p/kg. With sterling weakening against the euro, the competitiveness of cow beef on the continent has improved. Cow kill continues to be ahead of last years numbers, AHDB estimates suggest that at 12,000 head throughputs in the latest week were up on the week and again ahead of last year. Nevertheless, robust demand meant that prices still improved and O4L cows moved up 3p on the week earlier to 198p/kg. Figures for the UK cattle herd as at June 2015 show an increase in total cattle numbers compared with a year earlier, largely on the back of an increase in the breeding herd. The breeding herd, which accounts for over a third of all cattle, increased by almost two per cent to 3.5 million head. Of some significance, there was a small increase in the beef herd, up by just under half a per cent to 1.6 million head. Although only small, at 7,000 head, this is the first increase in the suckler breeding herd since While this does indicate a more positive position than has been the case in recent years, lack of profitability is still a concern in the suckler beef sector was the first time since 2011 that beef bred calf registrations recorded a year on year increase in the main calving months of April and May. This meant that overall beef bred registrations were up 30,000 head on Last year, the increase continued and beef bred calf registrations were up almost 50,000 head on the higher numbers of Looking towards this year, given that we have had more calf registrations over the past couple of years, the number of cattle on the ground in October of between 12 and 18 months of age was up 30,000 head on the same time in Those between 6 and 12 months of age were up over 70,000 head. Some of these animals will be finished this year and therefore the number of prime cattle available will be up on last year s level. The increase in dairy bred male calf registrations during 2015 will also be felt this year, given that most of these are kept as bull beef and finished quickly. However, more cattle are again expected to be castrated and 7

8 finished as steers, especially as reports suggest that processors demands for young bulls to be under 16 months of age remain firmly in place. This year Ireland will have a lot more cattle available and will have more for export, with the UK being the number one destination for Irish beef. Ireland has gained access to other markets the UK remains the top market. The most high profile success has been getting access to the US last year, the first European country to do since the BSE export ban was imposed 20 years ago, this market though has been hard to develop into anything other than a good PR story. The average R4L steer price in GB came back again and is averaging 341.8p/kg up +0.6p on the week, Scotland is at 346p/kg up 0.2p, the South are averaging at 334.4p/kg up 2.4p/kg, the North is steady and averaged 346.8p/kg, the Midlands have an average of 334.3p/kg up 2.4p/kg on for the week. Northern Ireland steers are at 313.2/kg back 1.1p/kg on the week and the ROI is steady in sterling terms at 290.6p/kg. The average R4L heifer price in GB is down 0.2p/kg and averaged 340.5p/kg. The R4L heifer price in Scotland is down 0.8p/kg at 346.1p/kg, Midlands averaged 337.5p/kg a stand on position, the North is steady on the week averaging 340.6p/kg, Southern England heifers are up 3.2p/kg and averaged 336.7p/kg. Northern Ireland heifers are steady at 313.9p/kg and ROI heifers are steady in sterling terms to average 304.6p/kg. Prime cattle imports from ROI for direct slaughter in NI plants last week totalled 350 head and accounted for 5 per cent of the total prime cattle kill. This was similar to the corresponding week in 2015 when 395 prime cattle were imported from ROI for direct slaughter and accounted for 6 per cent of the prime cattle kill. The number of cows imported from ROI for direct slaughter in NI plants last week totalled 76 head compared to 28 cows in the same week in Meanwhile exports from NI to ROI for direct slaughter last week consisted of 63 prime cattle and 220 cows compared to 34 prime cattle and 238 cows in the corresponding week in Exports from NI for direct slaughter in GB last week consisted of 148 prime cattle and 35 cows which was a notable increase from the same week in 2015 when 40 prime cattle and 3 cows were exported to GB from NI. For the coming week: In the South of England, we are seeing cattle being quoted from bases of 322p to 327p/kg. While in the North, base prices quoted for next week are in the region of 344p/kg. The Scottish price is not much different to the North of England, Scotland is seeing cattle being quoted from a base of 346p/kg. In Northern Ireland processor, prices quoted are around 310p/kg based on R4L for the coming week. Angus, Shorthorn and Hereford native bred cattle continue to attract strong premiums of depending on the scheme. The Angus premium has fallen to around 5p in Scotland but varies depending on the scheme and the retailer involved, some schemes are still on a premium up to 30p. Cows remain in the region of 250p, with more for better fleshed cows with good conformation. 8

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10 AHDB (Meat Services) and LMC market prices: Week Ending 13/2/2016 Last Week s GB R4L steer average was 341.8p/kg. The overall cow average was 198.0p/kg Auction Averages Week Ending 10/02/2016 Price p/kg lw p/kg change on wk STEERS HEIFERS YOUNG BULLS COWS DeadWeight Cattle Prices (p/kg) Week ending 06/2/2016 GB SOUTHERN CENTRAL NORTH SCOTLAND N. IRELAND ROI R4L Steer p/kg change on wk R4L Heifer p/kg change on wk R3 Bull p/kg change on wk O+3 Cow p/kg change on wk All GB data in the above tables is reproduced from tables created by AHDB/LAA/IAAS For more detailed information please visit or * The above tables are unique because they are the only ones in existence that are published on a cross UK basis that carry information on all UK regions plus the Republic of Ireland. The information, which is delivered free to NBA members by , can only otherwise be obtained through AHD/LAA/IAAS (see above) and the Livestock and Meat Commission s (LMC)Bulletin for Northern Ireland. The tables should be a useful source of information to committed beef finishers across the UK. 10

11 BEEF INDUSTRY NEWS Bovine TB Control Gets 7 Million Research Boost Nine new research projects on the control and eradication of bovine TB have been awarded in the UK. The 7M research investment aims to bridge gaps in our understanding of the basic biology of the disease and overcome barriers to novel control and eradication strategies. New non animal models will help scientists study the disease and test experimental vaccines. The funds have been awarded by the Biotechnology and Biological Sciences Research Council (BBSRC), the National Centre for the Replacement, Refinement & Reduction of Animals in Research (NC3Rs), and the Department for Environment, Food and Rural Affairs (Defra) as part of an integrated programme of research on bovine tuberculosis (TB). The programme, comprising two separate calls, aims to promote a step change in bovine TB research leading to the development of novel control and eradication strategies. The first call, which included 70k support from NC3Rs, provided funding for three projects in 2015 to develop improved in vitro and in silico models to study bovine TB infection and virulence. The second call, which includes 600k support from Defra, sees a further six projects that will focus on bridging gaps in our understanding of bovine TB strain diversity and of the interactions between bovine TB and its hosts, as well as accelerating vaccine research. Bovine TB is the greatest animal health threat to the UK. Dealing with the disease is costing the taxpayer 100M each year. The UK Government is pursuing a comprehensive eradication strategy which includes tighter cattle measures, improved biosecurity and badger control in areas where the disease is rife. BBSRC Chief Executive Professor Jackie Hunter said: The basic bioscience funded through this integrated research programme will play a crucial role in the development of next generation control and eradication strategies for bovine TB. "Increasing the protection of herds to this disease is a top priority for UK food security, allowing greater food production from the same amount of land and reducing wastage in the food chain whilst reducing the cost to UK taxpayers. Dr Vicky Robinson CBE, Chief Executive of the NC3Rs said: Research on bovine TB has traditionally been heavily dependent on animal research to study pathogen biology. "The use of non animal approaches such as in vitro and computer models have the potential to transform knowledge of the disease as well as avoiding the use of laboratory animals, making this new collaboration between the BBSRC and the NC3Rs a win/win. UK red meat production up during 2015 Beef production in the UK rose 0.6 per cent and sheep meat production 0.5 per cent during the twelve months of 2015, according to the latest market analysis by Hybu Cig Cymru Meat Promotion Wales (HCC). Some 883,200 tonnes of beef and 300,300 tonnes of sheep meat were recorded through UK abattoirs for the 12 months January December. Prime cattle slaughterings in abattoirs in the UK totalled 1.92 million, a decrease of two per cent on 2014 figures; however, sheep slaughterings increased by two per cent to 13.1 million head during the quoted twelve months. Throughputs for the New Season Lamb (NSL) period were 9.1 million head, level with the same period in Sheep meat production May December rose 0.5 per cent to 206,100 tonnes on the back of heavier carcase weights for much of the season. In December, prime cattle slaughterings in the UK stood at 148,300 head, an increase of seven per cent on the same month the previous year. Heavier carcase weights continued to 11

12 be a trend for the year, with beef production in the UK increasing 11 per cent to 69,700 tonnes for December. Sheepmeat production during December declined by three per cent to 23,400 tonnes with throughputs at 1.1 million head, a four per cent fall on the last month of In Wales sheepmeat production during December declined seven per cent to 5,200 tonnes with throughputs at 285,900 head, an eight per cent fall on the last month of Meanwhile throughputs for the New Season Lamb (NSL) period in Wales were 2.5 million head, level with the same period in Welsh sheep slaughterings could remain low during the Old Season Lamb (OSL) period between January and May because the June Welsh Government census data estimated a four per cent decline in the Welsh lamb crop in 2015, said HCC Industry Information Officer Charlotte Morris. However, emphasis must be placed on the quality of the lambs presented at market, as the recent poor weather conditions could have affected lamb growth rates and condition. In turn, this could lead to a larger than expected number of lambs marketed towards the end of the season. Mobile Phones Ranked as Top Threat to Romance this Valentine s Day The use of mobile phones at the dinner table has been identified as the biggest threat to romance during a Valentine s Day meal, in an online survey undertaken for Scotch Beef PGI. 42% of those questioned in the YouGov survey, commissioned by Quality Meat Scotland, identified banning the use of mobile phones and tablets at the dinner table as top of their list of romance rules to help prevent the atmosphere being ruined on one of the most romantic days of the year. The YouGov survey, undertaken last week, saw over 2000 UK adults questioned on their Valentine s Day plans. Other romance spoilers identified included the presence of children (10% of those surveyed) while money (5%), football (4%) and politics (3%) were all highlighted as areas of discussion to avoid if the dinner date is to run smoothly. The survey also identified steak as the number one choice for a Valentine s dinner to impress, coming out well ahead of alternatives such as salmon, pasta, pizza and burgers. The results also revealed that more people would prefer to dine out this Valentine s Day, rather than eat in. With so many shoppers looking to purchase quality steak in the coming days, this week offers a fantastic opportunity to really inspire people about Scotch Beef and what sets it apart, said Carol McLaren, Head of Communications with Quality Meat Scotland (QMS). Scottish farmers work very hard to produce a top quality product and the fact that steak is the number one choice to celebrate Valentine s Day with is great news for the industry. QMS has also developed a Perfect Steaks and Roasts app which is free to download and packed with tips to help ensure there are no excuses for producing anything other than a perfect Scotch Beef steak on Valentine s Day. AHDB Outlook Conference addresses market predictions The levy board s chairman, Peter Kendall, welcomed guests to the meeting. As well as addressing 2015 as a tough year for farming due to prices coming under pressure, he also highlighted the UK s position in the EU as having an effect on the agri food sector: The prospect of a June referendum could mean a significant impact on trade and our industry, he said. 12

13 Debbie Butcher, senior analyst for AHDB, discussed what the yearly forecast was expected to look like for the beef market. She highlighted that prices have been drifting down, as opposed to a dramatic drop, which is slightly better than five or six months ago. Butcher did acknowledge that it was only natural for the early stages of the year to experience easing of prices as a result of consumers tightening their belts after the Christmas period. According to Butcher, the prime cattle herd stands at 1.92 million head. Addressing the marketplace for 2015, she labelled the year as a year of two halves. For the first half of the year, numbers were trending about on par as the year before, she explained. Turning into the second half of the year, we were culling cows at quite some rate. This data was provided by Defra and, according to Butcher, there will be more information coming later in the year which will provide further details was recognised as another strong year for carcase weight as they were well (10/15kg) above the five year average across the board. What that means is despite fewer prime animals slaughtered, the balance, when we take into account the increased number of cows that we put forward and the higher weight, means that we actually produced a little bit more beef than we did a year earlier. Meanwhile, during the first half of the 2015, the beef tonnage coming from Ireland was still trending just above of where it was a year earlier. However, come July, volumes started to slow down. By the time September came around, we were bringing in less beef from Ireland. Despite this, imports were still up by 6%. Butcher said that the UK was seeing increased competition from Eastern Europe. Poland is actually our third supplier now after Ireland and The Netherlands, she told the audience. It s still very small in volume terms, but it accounts for 5% of our imports where two years ago that was 2%, so they have grown. Although producers and farmers may be challenged by competition from Poland, Butcher did stress that there was a positive flavour for British beef exports. Over 70% of our fresh, chilled trade, which accounts for 80% of our overall trade, is now in the form of boneless cuts. Five years ago, it was less than half. So that s a significant development. When we first came back into the export business in 2006, it would have been a fraction. In 10 years, we ve really moved that segment of our export business on. Why s that important? Because that s where the value is. Even though the industry faced challenges, Defra stats from June showed that the breeding herd continued to grow. Butcher s analysis revealed that she expected prime cattle numbers to be up 2% for the coming year: Although I forecast an increase in numbers for this year, in the big picture we are still in a fairly tight supply situation. Her forecast also revealed that exports will increase in line with production levels. 13

14 We re definitely going to be producing more beef in the UK, and Ireland is going to be producing more beef, Butcher told Meat Trades Journal. I do think we stand a chance of having a better export position, which is good. We re still going to have some competition though, especially from Poland. The British industry may face challenges from Poland, but Butcher did recognise opportunities within the UK. We have a strong home market, she said. Beef is a staple part of the diet in the UK, whether it is mince or roasting joints. It s not all doom and gloom and sterling is going in our favour. Not only will that give us a benefit on the export market but it might just soften the competitive position of the Irish market. AHDB shares information on beef and lamb consumer work The supply chain must continue to find ways to work together more closely to stimulate demand for beef and lamb, an industry round table meeting agreed yesterday (Thursday). Key industry stakeholders met at the NFU Headquarters, in Warwickshire, to discuss the challenges facing promotion of beef and lamb in the UK and new ways of working together to make the most of available resources. Staff from AHDB Beef & Lamb were on hand to present information on their latest work, including the impact of the mini roast campaign. Adam Quinney, chairman of AHDB Beef & Lamb, said: It s now more important than ever that all links in the supply chain work closely together to promote beef and lamb. Consumers want to buy quality beef and lamb that delivers consistent eating quality and we have a fantastic product, which is sustainably produced. That puts us in a very strong position. By working closely with industry partners, producers, processors and retailers, we can all maximise returns while maintaining robust demand. Roundtable meetings such as this are invaluable in ensuring that everyone involved is working towards the same goals. Co op launches integrated calf scheme The Co operative Group has launched a calf scheme to integrate its dairy and beef supply chains. The scheme connects Co operative Dairy Group (CDG) farmers with beef producers to ensure calves from dairy farms are retained within the Co operative supply chain. It is part of a combined project between the retailer s milk processor, Muller Wiseman, and its two beef suppliers, ABP and Dunbia. The scheme provides an outlet for all calves from the CDG s 200 dairy farms, including purebred dairy calves and native and continental crosses. The Co operative s senior agricultural manager, Ciara Gorst, says the scheme s inclusiveness was a fundamental founding objective, so much so that it is even open to dairy farms with TB. Other retailers have calf schemes, but they have 10 farmers in it. This is actually an option for 200 of our dairy farmers, providing they meet specification. We do have a limited solution for TB calves and will endeavour to do our best to take them, but we can t guarantee this. TB calves make up a very small percentage of the total number of calves we take through the scheme at the moment. To date 41 dairy farms within the group have signed up to the scheme since it launched last autumn. Matt Hood, the director of fresh food at the Co operative, says the overall aim of the scheme is to improve product quality and traceability. 14

15 If we can get the age of the animal right and control the whole chain, we can come up with a product that is going to deliver every time. All Hereford sired calves will go into the Co op s top tier Truly Irresistible range, while the rest will mostly supply its standard beef range. The Co op says one of the primary reasons the scheme was launched is to address animal welfare issues head on. Dunbia supplies the retailer with 75% of its beef, so it has been integral in making the scheme a success, having invested in 16 dedicated rearing units. The other 25% of beef is supplied by ABP and Blade Farming. Coveney only set up the Beef Forum as a hollow political gesture The Minister for Agriculture, Simon Coveney, only set up the Beef Forum as a hollow political gesture, according to Fianna Fail s Agriculture Spokesperson Eamon O Cuiv. O Cuiv said that the Minister has failed to address the issues in the Irish beef sector and that the forum has clearly failed farmers. It has proven to be a toothless tiger benefitting the processors to the detriment of the primary producer. The Agriculture Spokesperson has accused the Government of failing to take any tangible action to ensure a fair price for beef farmers as processors continue to drive the Government s agenda. Irish beef farmers are being left behind by Fine Gael, as the price differential between Irish beef and British beef in UK supermarkets continues to grow, according to O Cuiv. The move by ABP Food Group to take a 50% stake in Slaney Foods raises legitimate competition questions about the beef and lamb processing sector. The Minister has refused to make any submission to the Competition and Consumer Protection Commission regarding the matter. We cannot have a situation where farmers continue to be price takers as opposed to price makers. Beef in greater demand in China than sheep meat Chinese imports of beef and sheep meat showed contrasting trends last year, according to the UK based meat marketing body AHDB Beef and Lamb. There was a sharp rise of almost 60% in imports and the demand for beef and veal increased significantly from the previous year. In total, Chinese imports of beef and veal amounted to 474,000t. This differs hugely from the trends on the sheep market, which suffered a 21% decline. Lower domestic demand combined with increased domestic production meant it was a particularly more difficult market. As a result of this, the import price reduced by 17%. Since 2009, trade into China has sharply increased and imports of beef and veal have consistently improved, with 2015 being the highest so far. Sheep imports have also been steadily increasing since 2009 and last year saw the first drop in the figures. The high demand for beef imports comes after Ireland obtained approval for beef exports to the Chinese market. Inspectors from a high level team in China arrived in Ireland last month to carry out inspections. The trends in the sheep market affected exports from both New Zealand and Australia. New Zealand suffered a 13% drop to 139,000t and Australia was down to 81,000t, back over a quarter. Total Chinese imports amounted to 222,000t as shipments from other countries only accounted for 1% of the total last year. 15

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