Beef price rises are not all good news for producers

RECENT increases in the price paid to beef producers may give the idea that all is well in the red meat sector. Not so, according to one of Scotland's beef lobby organizations.

Brian Simpson of the Scottish Beef Cattle Association yesterday warned that the under-selling of beef to UK consumers by the major supermarkets was causing growing concern for beef producer and wholesalers alike,

While the continued rise in beef prices ex-farm to around 310p/kg was creating a mood of much-needed confidence for producers, the retail trade has reportedly been concerned about passing increases to consumers.

His allegation is that many supermarkets are continuing to place beef on promotion at lower attractive prices with the result that any downstream profits are effectively eliminated.

"SBCA expect to see increasing realism among multiple retailers as they realise that the high cost of competing with each other will need to be funded from their own resources in future," he said.

"Profit will have to be generated by sales rather than the simple tactic of pricing high street butchers out of business and forcing suppliers to operate with unprofitable terms of trade."

Simpson said that now was a good time to reflect on how to move forward in a way that was more positive for all participants in the beef chain, especially since the world price of meat is anticipated to stay strong in the light of high energy and cereal prices.

"Any good independent butcher knows that there are always ways of presenting meat in affordable packages or as processed products utilising cheaper ingredients. SBCA would like to see consumers being offered a wider choice of value cuts with a stronger promotion and higher pricing of our quality Scotch beef product.

"The good weather being enjoyed in much of the UK has got the barbecue season off to a flying start - a perfect opportunity to offer the very best grilling cuts at a premium price the trade needs and producers deserve"