Mixed week for deadweight cattle prices

There was a small drop in the GB all-prime average deadweight cattle price for week ending 5 February, down 0.6p to 405.1p/kg. Despite this drop, the all-prime price is still 28.3p above the same week a year ago and 52.4p above the 5-year average.

Although steers and heifers’ prices dropped again this week by 0.9p and 0.6p respectively, the price for young bulls increased by 0.5p to 388.9p/kg. The price for cull cows has been steadily increasing since mid-December, up 3.5p this week to 278.2p/kg, highest value since September 2021.

050222 GB prime cattle price

Estimated prime cattle slaughter increased to 31,000 head this week, 3.7% higher than the week before, but 9% lower than a year ago. The estimated cull cow slaughter dropped by 5.4% this week to 10,400 head, sittings 15% lower than at the same time last year.

 

By Freya Shuttleworth / AHDB

Summit held to address ‘desperate’ crisis facing pig industry

Pig farmers are in a “desperate” position – with culls of thousands of healthy animals and producers quitting the industry, they warned as a summit was held on the crisis.

Farmers demonstrated outside a meeting in York on Thursday as industry representatives met with the Environment Department (Defra) about the problems facing the pig production sector.

The National Pig Association (NPA) said the backlog of pigs ready for processing, which are having to be held on farms because of a shortage of butchers, is now estimated at more than 200,000 animals.

The industry body said it knew of 35,000 healthy pigs which have been culled on farms as a result of the backlog, although this is likely to be an underestimate, and 40 independent producers have recently left the sector.

Producers are being hit by shortages in EU workers, caused by Brexit and the pandemic, to process their pigs and by high costs of feed for animals that are having to be kept on farms for longer before being sent to abattoirs.

Healthy pigs are being culled by farmers who have run out of space, creating food waste, while producers are also being penalised for overweight animals processed late, the NPA said.

As the NPA and National Farmers’ Union (NFU) held an emergency summit with Defra, attended by representatives from major retailers and pork processors, farmers warned the meeting was vital to the industry.

 

 

 

By Emily Beament / Evening Standard

Lamb price firmness remains

In the week ending 9 February, the GB old season lamb liveweight SQQ averaged 267.3p/kg, 2.2p lower than the week before.

The measure stood at just over 4p below the price recorded for the same week a year ago. Despite this, it was still over 50p/kg dearer than the five-year average for the week.

The number of lambs sold at GB auction marts during the week was estimated at 105,800 head, 5% less than the week before but up 7% from the same week a year ago.

Cull ewes averaged £91.87 per head, up £3.31 on the week.

 

On the deadweight front, the GB old season lamb SQQ ticked up in the week ending 5 February by nearly 10p to average 587.4p/kg. This put the measure up nearly 7p compared to the same week a year ago.

Clean sheep kill was estimated to be 211,700 head for the week, down 1% from the week before but up 14% year-on-year.

 

 

by Hannah Clarke / AHDB

Abattoir plans £15m expansion in Bamber Bridge

Dunbia has applied for planning permission for a new beef chilling unit and other modernisation works on its site at Walton Summit to add to the £20m it has already spent there in the past two years.

The plans will go before South Ribble’ s planning committee on Thursday, with councillors advised to give them the thumbs up.

The plant, which processes cattle and sheep, is bounded by Church Road and the M65 motorway. It is one of 12 Dunbia sites in the UK and one of the biggest employers in the area.

The Northern Ireland based company says this latest scheme is the third phase of a £35m modernisation and rationalisation programme “giving security to the existing 730 jobs at Dunbia.”

A report to the planning committee adds: “Dunbia has invested over £20m in the last two years on this site. The scheme is part of that commitment and adds another £15m in investment.

“This investment secures existing jobs on the site and will create a further 100-plus construction jobs that may arise from this phase on investment (over 12 months).”

The work will involve erecting the new beef chiller unit, adding new lairage buildings for animals to be rested before slaughter, adding an extension to another building on the site and raising the roof on an existing refrigeration unit following the demolition of a storage shed and existing lairage spaces.

 

 

By Brian Ellis / Lancashire Evening Post

Brechin abattoir takeover boosts pig sector confidence.

The cloud of uncertainty hanging over the future of Scottish pig processing has been lifted following the purchase of Brechin abattoir by Browns Food Group.

The specialist pig slaughterhouse, which employs around 100 staff, has been owned by Quality Pork Ltd (QPL), in a close collaboration between the two farmer cooperatives, Scottish Pig Producers (SPP) and Scotlean, together with Pilgrim’s Pride UK.

However, Pilgrim’s, which has been the sole customer for the pigmeat processed at Brechin, gave notice last year that the arrangement was “unsustainable” following a downturn in the pig industry and the abattoir’s loss of a valuable Chinese export licence after an outbreak of Covid at the plant.

That licence has not been reinstated by China despite the plant getting the all-clear by public health authorities a few weeks after the outbreak, and it is generally believed this is related to ongoing political tensions between China and the UK.

In a statement Dumfriesshire-based Browns said: “This is an exciting new development for both companies which will ensure a promising future for Scottish pork while supporting the existing established markets.”

SPP chief executive Andy McGowan said the new arrangement would mean business as usual for Scottish pig farmers who are currently supplying the plant with around 4000 pigs per week.

“The announcement lifts the question marks surrounding the future of the site  and brings about simplicity,” he said.

 

 

 

Defra agrees to urgent summit with pig sector as crisis deepens

The government has agreed to convene an emergency summit of the entire pig supply chain as the sector’s crisis deepens.

Defra farming minister Victoria Prentis today agreed to the joint National Pig Association (NPA) and NFU request for a roundtable event amid a worsening crisis.

It comes as the pig backlog is now estimated to be well in excess of 170,000 due to a lack of butchers in pork processing plants, as a result of the pandemic and Brexit.

Tens of thousands of healthy pigs have been culled on farms across the country by increasingly desperate producers who have run out of space.

NPA chairman Rob Mutimer and NFU president Minette Batters wrote to Defra last week, calling for it to “arrange a summit of the entire pig supply chain so that we can agree a plan to get these pigs off farms and onto people’s plates”.

Responding, Mrs Prentis agreed that “convening a roundtable bringing together producers, processors, and retailers to discuss the ongoing challenges faced by the sector would be helpful”. The date will be arranged ‘shortly’.

She acknowledged that recruitment of butchers via the temporary visa route, which closed to applications on 31 December, had ‘taken longer than initially expected’.

But she said that processors could still recruit butchers via the UK’s new points-based immigration system, which was introduced last month.

The Defra minister also acknowledged that uptake of both the Private Storage Aid (PSA)and Slaughter Incentive Payment (SIP) schemes had been lower than anticipated.

 

 

 

by Farming UK

NZ Red Meat Sector Achieves Record Exports During 2021

New Zealand’s red meat sector exports reached $10 billion in 2021 despite the disruption caused by COVID-19, according to an analysis by the Meat Industry Association (MIA).

The exports represented a nine per cent increase on 2020. The value of red meat and co-products exported in December 2021 was also up 22 per cent year on year, at just over $1 billion.

Sirma Karapeeva, chief executive of MIA, said the sector had worked tirelessly in the face of ongoing global logistical challenges to continue to achieve the best possible results for farmers, the 25,000 people working in the industry and for the New Zealand economy.

“Despite all the disruptions and labour shortages, we were able to make the most of the global demand for red meat and generate record export revenue.

“The sector is continuing to perform for New Zealand in the most difficult conditions. However, supply chain challenges will significantly disrupt exports for some time to come and we do not yet know what impact that will have on the Easter chilled trade.

“This illustrates very clearly how critical it is for the industry to have access to sufficient labour including overseas migrants to capture the greatest market value and support the jobs of thousands of hard-working Kiwis.”

 

Overall, both sheepmeat and beef exports increased by five per cent and nine per cent year-on-year respectively, with both worth more than $4 billion for the year. Co-products exports also increased by 19 per cent, to almost $2 billion.

Red meat exporters have responded swiftly to adapt to rapidly-changing logistics environments – for instance, by converting chilled product to frozen, when needed, to address risks in the disrupted supply chain, says Ms Karapeeva.

While chilled sheepmeat exports to the UK dropped by 42 per cent in December, to the lowest volume in 25 years, frozen sheepmeat exports to the UK increased by 95 per cent.

Ms Karapeeva said that while there has been some softening in Chinese demand for sheepmeat from the previous high levels, prices in China have remained strong.

Overall sheepmeat export volumes to China dropped by 15 per cent in the fourth quarter. However, the value of sheepmeat exports to China increased by three per cent in the same period.

China remained the largest overall importer for the quarter (41 per cent), followed by the US (20 per cent), the UK (4 per cent) and Japan (4 per cent).

 

 

scoop.co.nz

Eustice puts pig crisis onus on processors

Defra Secretary George Eustice has told a committee of MPs that the Government is ‘limited’ in what it can do to support pig producers during their time of crisis.

Instead, Mr Eustice put the onus very much on pork processors to do more to increase their throughput and reduce the backlog on farms, at one point appearing to suggest this should include paying farmers less to speed up the process of getting pigs through plants.

However, while he offered little prospect of any short-term Government help for the industry, Mr Eustice reiterated that Defra is looking to introduce new legislation in the future to ensure a more functional and fairer pig supply chain.

Mr Eustice was questioned on the pig crisis by Environment, Food and Rural Affairs (EFRA) Committee chairman Neil Parish and other MPs at the end of a long and wide-ranging session on Tuesday covering his and Defra’s work.

‘Sheer waste of food’

Mr Parish quoted a Yorkshire pig farmer, who had told him pigs are being culled on her farm ‘as we speak’, as the impact of pigs being held on farm for longer due to processing delays takes its toll. “There are animal welfare issues of this and it’s a sheer waste of food,” Mr Parish said, before asking the Defra Secretary what more could be done to get pigs ‘properly processed and the animal welfare issues solved’.

Mr Eustice acknowledged that the situation was ‘quite difficult’, but went on to explain how the industry’s ‘asks’ that the Government had delivered in its October support package had not been utilised by processors.

The ‘bespoke’ temporary visa scheme for pigs that was delivered despite being a departure from Government policy ‘hasn’t been used as much as we’d hoped’, he said. “There was a provision for about 800, but I think it will be in the low hundreds for the numbers that they actually bring in under that scheme.

“Some of the processors have used the skilled route to bring some butchers in from some areas, but they’ve not they’ve not been recruiting in the way we thought they might, given the labour shortage was one of the key issues they kept highlighting.

 

Alistair Driver / Pig World

Lamb exports to the EU will return to pre-Brexit levels, says Eustice

Defra Secretary George Eustice has claimed lamb exports to the EU will return to pre-Brexit levels in future.

British sheepmeat exports to the bloc have fallen by 25 per cent since the UK left the EU, with industry leaders blaming the sharp drop on non-tariff barriers such as paperwork and checks.

Last year, the British Meat Processors Association (BMPA) warned UK meat exporters were having to spend an extra £1,000 to send a lorry through a port.

Smaller exporters, in particular, have struggled to handle the 29 different processes required to send meat to the continent.

Giving evidence to the Environment, Food and Rural Affairs Select Committee this week (February 1), Mr Eustice said he expected the trade to bounce back over the coming years.

“Things like salmon have actually seen an increase in their exports since we have left the European Union, driven by high demand for premium product,” he told the MPs.

“I think we will see a similar situation on our other major agricultural exports like lamb. There will be some impact because of the additional export processes which are required and the costs associated with that, but the big exports we rely on will resume just as Scottish salmon already has.”

But National Sheep Association (NSA) chief executive Phil Stocker questioned whether this would be the case.

“[Trade] will never return to the way it used to be, and seeing the effect border control posts and export health certificate controls are having on exporters, I do not see our volumes to the EU returning to where they were,” he said.

 

 

 

By Abi Kay  / Farmers Guardian

 

Reduced abattoir throughputs may impact future trading patterns

Reduced throughputs at UK abattoirs will have a knock-on impact on future trading patterns, industry chiefs have warned. 

It comes as tight supplies of cattle and sheep have supported the continuing trend of above-average market prices into the first month of 2022.

But last year saw cattle throughputs reach their lowest level since 2015 at 2.7 million head, a 5.7 per cent drop on 2020 and 4.3 per cent below the five year average, according to Defra figures.

Glesni Phillips, data analyst at Hybu Cig Cymru – Meat Promotion Wales (HCC), said the decrease in cattle throughput at UK abattoirs last year was not unexpected.

“Increased numbers were processed during 2020 and this led to fewer cattle on the ground,” she said.

“This was especially true for adult cattle which saw throughput fall by almost 6 per cent on the year.”

 

 

Hannah Binns / Farmers Guardian

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