A lack of transparency throughout the British beef supply chain is affecting returns for all and the industry needs to start to work together better to deliver greater efficiency, according to the Agriculture and Horticulture Development Board (AHDB).
AHDB Beef and Lamb suggests the market isn’t currently working to the benefit of either producers or processors, with producers seeing a reduction in returns and processors not getting the mix of carcases that their customers require.
AHDB undertook a series of analyses into current pricing of beef carcases following reports of changes to pricing specifications by processors. However the resulting analysis found difficulties on both sides.
The report found that only half of the cattle slaughtered in the months analysed hit suggested specification range and that less than a quarter of male cattle hit both target classification and the narrowest weight range.
According to AHDB the fragmented nature of production is one factor preventing carcases from being more consistent, but only relatively small adjustments to carcase classifications are needed for producers to significantly improve returns.
Stephen Howarth, AHDB Market Intelligence market specialist manager, said: “A more transparent environment, allowing more positive, open relationships to develop across the supply chain, would potentially benefit everyone.
“It would give producers more certainty about future market requirements, encouraging them to make the changes needed to deliver consistent carcases. In return, processors would get more certainty that they will be able to secure the supply they need. It would be a clear win-win for both groups of levy payers.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
