An influx of cheap South American meat could be destined for the EU, tempting retailers and manufacturers away from British sourcing commitments.

The EU has indicated its intention to resuscitate trade talks with Argentina, Brazil, Paraguay and Uruguay, after imports were suspended in 2004.

The announcement by the European Commission has angered farming organisations, who claim the market could be flooded with hundreds of thousands of tonnes of pork, beef and poultry.

In previous negotiations, the South American countries sought a combined annual EU import volume of 250,000 tonnes of poultry alone. Currently, about 52,000 tonnes of fresh and frozen chicken is imported to the UK from Brazil.

Eblex claimed retailers would not risk switching supply simply because of cheaper prices. "We believe very strongly that consumer preference within the EU is for domestically produced product," said Peter Hardwick, head of trade development at Eblex.

However, one retail source stood up for the quality of South American meat. "Uruguayan beef is totally farm-assured, from Hereford and Angus pure breed cattle grazed on natural pastures."

Meat procurement should not be seen in terms of competition between countries as the global industry needed to work together to ensure there was sufficient future supply, he added.

The NFU said it hoped retailers, manufacturers and foodservice suppliers would stick by their commitments to sourcing British meat, but warned that manufactured and frozen products could prove the weakest link. "The softest target is always going to be poultrymeat products where it is less clear where the meat is from," said NFU chief poultry adviser Robert Newbery. "There's a chance of it undercutting the wider poultry market and reducing the price paid back to farmers in the UK on fresh poultrymeat."

But one retail source said the level of capital retailers had invested in dedicated supply chains or other supply initiatives would put them off backtracking on British supply. "A massive shift away from these supply chains isn't credible."

Meanwhile, processors have urged the EU to proceed with caution and ensure agriculture does not lose out in the talks.

Ultimately, an agreement could result in a lowering of returns for both farmers and processors, claimed Linden Foods MD Gerry Maguire. "If they flood Europe with more expensive cuts like sirloin, fillet and rib eye, it's going to have an impact on what we can sell ours at and will affect the return to farmers.

An increase of poultry meat imports into the EU could drive poultry producers out of the industry, warned Cees Vermeeren, director of Avec, the EU association of poultry processors and poultry trade.

"It will put the price under pressure, which means if we can't continue to produce and get our costs compensated by the prices consumers pay, there will be less poultry production in Europe, a loss of capital and a loss of employment."


Buying British
Tesco: 90% British on fresh chicken, 85% on fresh beef, 70% on fresh pork and 60% on fresh lamb.
Sainsbury's: 100% British on fresh chicken, frozen whole chickens and fresh sausages.
M&S: 100% British on fresh pork, beef and chicken.
Morrisons: 100% British on fresh pork, beef, lamb and chicken.
Waitrose: 100% British on fresh chicken, pork and beef. McDonald's: Claims to be one of the biggest purchasers of British and Irish beef.

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