Concerns over AHDB’s sale of MLCSL
The British Meat Processors Association (BMPA) along with other key meat and livestock industry bodies have expressed concerns over AHDB’s planned sale of Meat & Livestock Commercial Services Ltd (MLCSL) to HallMark Veterinary Services.
Their concerns were expressed in a joint letter sent to both Jane King, CEO of AHDB and Defra Minister George Eustice.
AHDB has been going ahead with plans to sell-off its independent carcase classification arm and transfer it from public to private sector ownership.
A large proportion of the meat and livestock industry have concerns about how this sale is being brokered and what terms of reference the new oversight body will be operating under.
It is said that many feel that AHDB has not consulted sufficiently with those who stand to be most affected, which is why they have asked that sale negotiations can be put on hold to allow industry to bring their needs and concerns to the table.
Nick Allen, CEO of BMPA, said: “An open consultation will offer up useful insights and solutions that may have been missed up to now. But, more importantly, it will ensure that the future of MLCSL has been shaped, not by short-term commercial expediency, but by the long-term needs of the whole meat and livestock industry.”
The next five years are said to be some of the most transformative for a very long time, with new technologies revolutionising how the food chain operates.
Meat Management contacted AHDB, and received a statement from its CEO Jane King.
AHDB CEO, Jane King.
King commented: “Unfortunately over the last few years, MLCSL has faced a substantial financial challenge to its business model as some of our large customers switched to VIA systems. The business has struggled to make a profit and service has become more difficult and challenging.”
“After a year-long exhaustive review of the options, it became clear that the best way to secure the future of the business was to look for a private partner already working in the abattoir sector that would bring investment, secure greater efficiencies and synergies to reduce costs.
“Most importantly, it would ensure MLCSL was able to continue delivering a GB-wide service. These opportunities are simply not possible under the current public ownership model.”
King concluded: “We have close working partnerships with the organisations that have shared their concerns with us, we hear them and want to assure them that consultation will continue.
“A working group is meeting next month to discuss an oversight group to secure the continued independence of the service for the long-term benefit of the industry. The group includes meat processors, farming associations, trade bodies and other interested parties, and we are committed to working with them to secure the future of independent classification services.”
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