Over half of small abattoirs expect to close within 5 years

Over half of small and local abattoirs expect to close within the next five years if action is not taken to safeguard their future, new research shows.

The National Craft Butchers (NCB) surveyed small and local abattoirs throughout England, Scotland, and Wales from March to May this year.

It highlighted the importance of the local abattoir network to farmers and the challenges it currently faces, including increased regulation, lack of training and loss of income.

Of the abattoirs surveyed, 70 percent of owners are aged over 51, with 11 percent over the age of 66, highlighting the sector’s aging workforce.

Over half (59 percent) expect to close the business within the next 5 years if action is not taken, and 56% do not have a succession plan or someone to take over the business.

Increases in one size fits all regulation, loss of income through hides and skins and lack of education in the meat industry as a skilled and attractive career choice is leading to a ‘cliff edge’, the NCB said.

by Farming UK

UK lamb exports plummet by a quarter in May

Lamb exports from the UK continue to be under pressure as new figures show exports declined by nearly a quarter last month.

UK sheep meat exports declined 23 percent year-on-year in May to stand at 4,850 tonnes, data by HMRC shows. The vast majority – 95 percent – were to the EU.

Volumes of fresh carcase exports only recorded a modest 2% on the year with most of the reduction being in cuts of sheep meat.

Looking at the figures, AHDB said there had been continuing trade friction between the UK and the EU which had ‘no doubt put volumes under pressure’.

“Equally domestic farmgate prices remained high during May which would have reduced the competitiveness of British lamb,” said Rebecca Wright, AHDB analyst.

“British exports totalled 24,600 tonnes in the year to May, down 6,500 tonnes year-on-year.”

by Farming UK

Many farmers are still missing carcase spec, says QMS

A “SIGNIFICANT proportion” of Scottish livestock are still failing to meet market specification, according to Quality Meat Scotland.

The red meat promotion body said that close to 40% of sheep and 30% of beef cattle in Scotland were being presented off-spec, resulting in financial, productivity and efficiency costs up and down the chain.

To remedy this, the levy-funded body wants more farmers to use its virtual carcase grading tool Meat the Grade, which was launched in late 2020.

QMS cattle and sheep specialist, Beth Alexander, who helped develop the tool, said that two of the most common reasons for ‘out of spec’ carcases were livestock which were overfat and overweight.

“Only 72.7% of the steers and 60.9% of lambs processed by Scottish price reporting abattoirs in 2020 met specification,” said Ms Alexander.

By Gordon Davidson / Scottish Herald

2 Sisters posts annual loss of £25.9m

2 Sisters Food Group has recorded an annual loss of £25.9m in its latest financial results covering the year to 1 August 2020. This is an improved result on the year before, when losses reached £69.3m.

2 Sisters Food Group is a wholly owned subsidiary of Boparan Holdings. During the course of the year, in November 2019, the company acquired the trade and assets from 2 Sisters Poultry, a fellow group subsidiary.

Turnover for the period was £1.275 bn, up 6.3% from the previous year. The company attributed this growth to the acquisition of trade and assets from 2 Sisters Poultry. The gross margin increased compared to the previous year from 3.4% to 8.8%, which the company said reflected improvements to operating performance.

The company said the COVID-19 pandemic had brought volatility and uncertainty to the business, specifically through the lack of labour caused by the requirement to self-isolate.

By Chloe Ryan / Poultry News

Treasury to become majority shareholder of Isle of Man Meat Plant

Government equity in the Isle of Man Meat Plant is to be transferred to the Treasury after Tynwald backed the move.

Currently the plant’s majority shareholder is the Department of Environment, Food and Agriculture.

Meat Plant chairman Tim Baker argued the organisation was a private firm run at arm’s length from government.

However, it was widely argued that DEFA’s role as the majority shareholder and Mr Baker’s role as political chair meant it was not independent.

The report said the £2m grant paid to the plant did not offer value for money as the majority of Manx meat was exported, and DEFA had a “potential conflict of interest” because there was not “clear separation of functions and responsibilities”.

Although a tender process for a private operator of the Tromode plant was run in 2017, no firm was appointed and Isle of Man Meats was set up with the department as majority shareholder.

While the report itself did not have any recommendations, it expressed a view that ownership should be transferred.

Chris Thomas MHK put forward an amendment to make that happen, along the review and reform of the governance, regulation and management of the plant “as soon as is practical”.

Backing the amendment, committee chairman Clare Barber the transfer would “ensure separation of powers” and was a “pragmatic solution to a problem”.

“We believe that if we don’t fix some of the issues raised within this report we won’t have food security at all,” she added.

“We will rely on 100% of imported meat if we don’t have a change in strategic direction for the meat plant.”

BBC

Job losses as AHDB cuts costs by £7.8 million in major restructure

Staff cuts including some in its senior leadership team will see AHDB reduce its operational costs by £7.8 million.

As part of a major restructuring programme announced earlier this year, the number of senior managers will be cut from 20 to 14.

But the majority of the savings from its £29m staff and overheads budget come as a result of the winding down of the horticulture and potato sectors following two levy payer ballots.

The board also plans to save money by subletting some of its office space at its Stoneleigh headquarters.

AHDB chair Nicholas Saphir said: “This new structure puts a clear focus on day-to-day delivery across all our knowledge exchange, technical, market intelligence, exports and marketing work.

“At the same time there will be absolute focus on levy payer engagement and involvement in planning sector priorities and programmes.

“With our new team now taking shape, this autumn we will be ready to unveil fundamental changes to the way levy payers can have a better say regarding what we provide, including the introduction of regular votes on a wide range of services and delivery.

“The revised senior management team will be in place at the beginning of September ready for the arrival of the new chief executive Tim Rycroft.”

Farmers Guardian

2 Sisters warns of worst food shortages in 75 years

The founder of 2 Sisters has warned supermarket shelves will be bare and panic buying will intensify unless the ‘critical issues’ threatening UK food supply are solved.

Ranjit Singh Boparan, founder and President at 2 Sisters Food Group, said the current challenges facing the sector are like no other he has seen in his 27 years as a food entrepreneur.

He said: “The use of the term ‘perfect storm’ has become a cliché, but never has that been a truer phase to use.

“No-one could possibly have predicted that this toxic cocktail would come together at this time. It started with the pandemic – and in the last week or so with ‘pingdemic’, but since May this year the operating environment has deteriorated so profoundly I can see no other outcome than major food shortages in the UK.

“Supply of chicken and turkey is under threat. Our retail partners and the wider supply chain have worked together closer than ever before to ensure we retain food supply and this is of huge credit to everyone. But we are at crisis point.”

He said the framework was ‘complete madness and the Government was sticking its head in the sand.

Mr Boparan said the ‘pingdemic’ was not the issue, there were structural changes which needed sorting.

By Alex Black / Farmers Guardian

Staffing shortages cause major plant disruption

Last week was marred by continued disruption at many plants caused by staffing shortages, with the upshot of curtailed demand from most of the majors, according to Thames Valley Cambac.

“The staffing issues seem to be twofold – isolation due to Covid or close contact, and the recent exodus of EU workers following the Settled Status deadline at the end of June,” TVC said in its latest market update.

Supplies continued to back up on farm, and average weights are increasing. Contract prices appreciated slightly and contract contribution quotes stood on.

The fresh meat market remained quite buoyant with decent demand from many, and prices were similar. The cull sow was well supplied and prices stood on.

European markets were varied, with Spain losing another 5 eurocents, but Germany and Belgium standing on. Prices quotes in sterling were enhanced by a stronger Euro that ended the week up 0.24p at 85.54p.

By Alistair Driver / Pig World

GB pig prices for week ending July 17 – SPP up again

AHDB Pork’s weekly pig prices, slaughter data and commentary for Great Britain

Finished pig prices continued to climb in the week ending June 17, as the EU-spec SPP lifted 0.78p to average 160.66p/kg. Despite recent gains, prices remain 4.95p below the same week last year, but up 8.46p on the five-year average.

Estimated slaughter fell notably on the week, down 3.7% (6,400 head) on the week before, and 10,700 head less than the same point in 2020. This is the first time slaughter levels have dropped noticeably below year-earlier levels since February. Recent reports have indicated challenges with staffing in processing plants and this may be reflected in the kill level.

All weight bands grew in price, with those weighing between 100 to 104.9kg seeing the largest weekly increase at 1.63p. The average carcase weight stood at 86.34kg, 210g heavier than those seen a week ago.

The EU- spec APP also lifted in the week ending 10 June to average 164.29p/kg, 0.82p more than the week before. The measure is now 4.41p below the price achieved for the same week in 2020. This narrowed the gap compared to the SPP to 4.41p.

Pig World

3 pig farms struck by African swine fever outbreaks in Germany

German authorities have confirmed an outbreak of the deadly African swine fever (ASF) among domesticated pigs with three farms affected so far. The country’s wild boar population has been plagued by the disease for months already.

The third outbreak of ASF was detected on a small farm in the eastern German state of Brandenburg over the weekend, local health authorities have said. Four animals have contracted the disease and two have already died. The two other animals have been ordered to be culled.

Two other outbreaks were confirmed by the health authorities on Friday. The disease hit a large organic farm with some 200 animals, as well as a smallholding with only two pigs.

“For almost a year we have been fighting against the enormous pressure of the disease from Poland,” Brandenburg’s state health minister, Ursula Nonnemacher, said when announcing the news.

“I very much regret the first cases in farm pigs, but sadly this possibility could never be fully ruled out.”

East Germany’s wild boars have been plagued by ASF for months already, with the first cases detected back in September 2020. The outbreak has affected the state of Brandenburg, which borders Poland, and, to a lesser extent, Saxony. With cross-border contagion believed to be the primary source of the disease, the authorities have tried to stop the wild boars from roaming freely between the two countries, erecting fences and laying traps.