A bonus-based contract for UK beef producers has been unveiled by processor St Merryn Foods, supplier of beef to Tesco.
Producers who signed up would be assured a market for their beef by St Merryn with a guaranteed price premium of up to 10p/kg, said John Dracup, procurement director.
He added: “This Bonus Plus Beef Plan will provide larger-scale beef producers with an integrated production system that can be developed within the post-CAP reform period.
“Profitable domestic beef production needs to be developed to be able to compete globally and in the EU.
“To achieve this producers need higher revenue from more consistent returns combined with efficient production systems and direct product sourcing to increase profits.
“We believe that our scheme addresses these issues by providing carcase premiums that increase during periods of low carcase prices and provides production support to achieve best-of-class performance.”