Inspections plan could force up meat prices, say producers

The Food Standards Agency plans to pass the full cost of meat inspections - around 69 million a year and shared between abattoirs and the taxpayer - on to producers.

But the move was denounced by the National Beef Association (NBA) which said it could devastate small businesses and lead to spiralling meat prices, while livestock producers are also expected to suffer.

NBA director Kim Haywood said: "You could see a dramatic increase in the price of beef on the shelf as the cost would have to be recovered in retail sales of meat.

"At the moment, inspection costs for cattle range between 7 and 25 a head, depending on which part of the country you are in and whether it is a small or big abattoir. Effectively that could now double."

The FSA's three-month consultation would see producers gradually shoulder an extra annual cost of up to 31.8?m.

It has proposed a tapered reduction in costs for smaller businesses.

The increase is expected to be felt most keenly by beef producers still subject to the burden of BSE inspections set up in the 1990s.

Ms Haywood hit out at the FSA's "overbearing attitude" accusing the watchdog of being a "fat cat concerned only with its own preservation".

"They are dumping the whole cost on the meat industry which we just can't afford and small abattoirs will go in their droves," she added.

A spokesman for the FSA said the move was designed to reduce the burden of costly inspections on the taxpayer.

"The fact remains it is unsustainable for the taxpayer to pay 32m annually for meat inspection and reform of the charging system is overdue," a spokesman said. "Our proposals are part of an ongoing process to engage the industry on reforming meat hygiene charging."

A decision on the consultation is expected in February.