Farmers have called for processors and retailers to continue to support the beef sector as it faces a “critical period”.
In an open letter, NFU livestock board chair David Barton warned that farmgate returns continue to reduce while input costs rise due to the conflict in the Middle East.
He called on the sector to “show long-term support” with a “fair, transparent agri-food supply chain” to stop the decline in cattle numbers and protect the future of the British beef industry.
Barton warned that producers were experiencing “severe price volatility and delays to book in cattle for processing”, which is increasing costs and carbon footprint.
He added that livestock numbers are low, with the suckler herd down 3.1% on last year. This comes against a backdrop of broader global decline with the latest analysis from AHDB showing EU domestic red meat production down on all three red meat sectors.
“Confidence across the sector remains low, with many producers considering their options in the short and medium term,” he said.
“Short-lived price spikes followed by sharp corrections do not give security. Rebuilding breeding herds is a multi-year journey that requires certainty,” he added. “If farmers do not have the confidence to invest in their herds in this way, then we could see a continued decline in livestock numbers.”
According to the latest data from AHDB, prices paid to farmers are down 2.8% week on week.
Barton said: “In short, we believe British beef producers carry the greatest risk as they make long-term financial decisions without a guarantee of a price they will receive for their product.”
This warning comes as last month, M&S announced a £2.1bn investment in British beef and lamb with decade-long contracts with its key suppliers ABP and Dunbia.
“True stability means backing British farming during shifting market cycles,” said Barton. “Therefore, we want processors and customers of British beef to show the same commitment to grow the sector.”
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