A lack of transparency throughout the British beef industry is proving detrimental to both producers and processors, a new report has claimed.
According to the Agriculture and Horticulture Development Board (AHDB), producers are seeing a reduction in returns and processors are not receiving the mix of carcases their customers are looking for.
Consequently, Stephen Howarth, market intelligence specialist at the AHDB, said a more transparent environment allowing more positive open relationships across the entire supply chain would benefit everyone.
“It would give producers more certainty about future market requirements, encouraging them to make the changes needed to deliver consistent carcases,” he said.
“In return, processors would get more certainty that they will be able to secure the supply they need.”
The first stage of the analysis looked at the extent to which the prime cattle being delivered to processors meet their requirements, while the second considered the levels of penalties.
The final instalment showed that prices paid for prime cattle are only partly related to meat yields.
Overall, the report found only half of the cattle slaughtered in the months analysed hit suggested specification range, and less than a quarter of the male cattle hit both target classification and the narrowest weight range.
The report pointed out that the fragmented nature of production is one factor preventing carcases being more consistent and that only relatively small adjustments to carcase classifications are needed for producers to significantly improve returns.
The good news is prime beef prices remain buoyant, with values for steers, heifers and young bulls up across the board due to the shortage of supplies.
Latest figures for the week ending August 20, show the steer trade in Scotland levelled at 363.9p per deadweight kg, up 3p on the week, with those hitting the R4L specification at 371.6p.
This compares to a 339.9p overall average and 354.5p R4L level for steers cashed south of the Border the same week.
Heifers in Scotland improved almost 7p on the week at 368.7p with the R4L spec’ averaging 372.0p. Heifers in England and Wales cashed in at 342.3p and 352.2p/dwkg, respectively.