Majority of abattoirs looking to invest over coming months
Majority of abattoirs looking to invest over coming months
After a tough couple of years, confidence in the future prospects of the English beef and lamb sector is rising, with 64% of abattoirs saying they planned to invest over the coming months, according to a survey by EBLEX. That figure is significantly up from 54% last year.
“It is encouraging to find that a majority of producers, processors and auction marts are feeling more optimistic than they were 12 months ago and are looking to invest in the long-term sustainability of their businesses and the wider industry,” said Nick Allen, EBLEX sector director.
In the same survey 56% of farmers said they planned to invest in their businesses this year. Of those who plan to spend on improving their farm, 62% said they would be investing in buildings, 50% in machinery and 47% in their flock or herd.*
The results come from the annual communications survey, which asks a representative cross-section of levy payers a range of questions about EBLEX work, their business practices and the wider industry, to help inform EBLEX strategy.
“The survey is just a modest snapshot but it is encouraging that there does seem to be greater optimism there for the future, particularly, it is fair to say, among the larger operators,” said EBLEX sector director Nick Allen.
“We have had some very tough weather conditions over the last couple of years, among a raft of other challenges, and times remain tough for the sector. Our Stocktake report shows just how tight margins are for many, but businesses can make a good return by operating efficiently, with good husbandry and marketing animals to hit peak industry specification.
“We operate in a global market and prices do go up and down, but the overall trend remains positive if you look at the longer-term picture.
“It is encouraging to find that a majority of producers, processors and auction marts are feeling more optimistic than they were 12 months ago and are looking to invest in the long-term sustainability of their businesses and the wider industry.”
Other results in the survey showed that three-quarters of those who have attended a Better Returns Programme (BRP) event in the last 12 months said they had made a change to their business practices as a result, and 70% rated the information they received as good or very good. In addition, 65% of producers are now recording their costs of production, up from 60% last year, with more than half of producers questioned being members of a farm assurance scheme.
