This document provides information
on some of the most commonly asked questions on BSE. It sets out the impact
on farmers and their livelihoods, the BSE control measures currently in place,
the impact on beef exports and consumption and the cost of BSE to Britain.
KEY FACTS AT A GLANCE:
Go deeper with GlobalData
- 4.6 million cattle have
been slaughtered as a result of stringent BSE control measures.
- BSE is costing British
agriculture at least £350m a year.
- 81 countries world-wide
have now lifted the ban on British beef.
- Beef sales in the UK
are now above pre-BSE levels with estimates for this year at 950,000 tonnes.
IMPACT ON FARMERS AND
THEIR LIVELIHOODS
British agriculture is currently
suffering the worst crisis since the 1930s. While not the only cause, the impact
of BSE has undoubtedly been a major contributory factor in this crisis.
JOBS
- More than 22,000 farmers
and farm workers left the industry in the twelve months to June 1999 with
a similar number expected to have left in the period up to June this year. - There are currently 75,000
beef and sheep farmers in Britain.
FARM INCOMES
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData- In 1998/99 the average
beef and sheep producer in England earned £2,400 per year.
- This is compared to pre-BSE
levels of £11,800 in 1995/96.
PRICES
- Although there a number
of factors, part of the reason that farm incomes have fallen so substantially
is the drop in prices received by farmers for products like beef. - BSE has undoubtedly had
an impact, if only because the cost of additional regulations governing beef
production are passed back down the food chain to farmers. - A steer (a finished beef
animal) weighing 500 kilos would currently be worth £440 compared to
a value of £634 in 1995.
BSE CONTROLS
Britain has in place the
most stringent BSE control measures in the world, making British beef amongst
the safest anywhere.
1. ANIMAL HEALTH CONTROLS
a. Notifiability and Compensation
21 June 1988 BSE made
a notifiable disease8 August 1988 Partial
compensation for slaughter of BSE confirmed and suspect cases introduced14 February 1990 Full
compensation introduced
b. Animal Feed Controls
18 July 1988 Ban on the
use of ruminant protein in ruminant animal feed25 September 1990 Ban
on the use of any specified bovine offals in all animal feed1 August 1996 Ban on the
use of mammalian meat and bone meal in feed for all farm animals
2. HUMAN HEALTH CONTROLS
a. Specified Risk Material
UK SRM removal controls
were introduced in November 1989. Since that time, the list of SRM to be removed
from all cattle (and sheep) has been progressively widened. It now includes:
head, spinal cord, thymus, spleen and intestines.Strict audit procedures
track the movement of such material up to its incineration.EU-wide SRM controls came
into effect on 1 October 2000.
b. Over Thirty Months
Scheme
Since April 1996, cattle
over 30 months of age cannot enter the human food chain.At 1 October 2000, 4.5m
cattle had been slaughtered under the OTMS.Compensation rates are
set out in EU legislation and stand at 0.9 Euros per kg liveweight for steers,
heifers and bulls and 0.8 Euros per kg liveweight for cows.
3. OTHER CONTROLS
a. Cattle Identification and Movement Recording
The UK has always met
all EU requirements and currently exceeds these.1 July 1996 Introduction
of cattle passports.28 September 1998 Introduction
of a centralised computer system. This records the births, movements and deaths
of all cattle born since this date.The Cattle Herd Registration
project, carried out during September
2000, aims to record the details of the entire GB cattle herd on the
Cattle Tracing System database.
b. BSE Monitoring
There is no validated
test for the detection of BSE in live animals. Nor is there a validated post-mortem
test for the detection of sub-clinical infection. In line with advice from
the Spongiform Encephalopathy Advisory Committee (SEAC), a BSE monitoring
programme has involved post mortem testing of cattle slaughtered under the
OTMS. During 2000/01, the Government intends to test for BSE in 10,000 cattle
over 5 years of age.This programme is additional
to the EU-wide testing of casualty and fallen stock which was agreed in the
EU Standing Veterinary Committee in April 2000. This programme will begin
in January 2001 and require the UK to examine around 7,000 cattle annually.
4. SLAUGHTER SCHEMES
a. Selective Slaughter Scheme
Introduced in February
1997, this scheme traces and slaughters all cattle born and reared alongside
a confirmed BSE case during the period July 1989 to June 1993.At 16 October 2000, 77,340
animals had been slaughtered under the scheme.Compensation, based on
individual valuation, is payable to the owners of these animals.
b. Offspring Cull
With the possibility of
a low level of maternal transmission of BSE (at such low levels that it would
not perpetuate the BSE epidemic), an integral component of the Date-Based
Export Scheme (DBES – see next section) is the compulsory offspring cull.Under this scheme all
animals born on or after 1 August 1996 to confirmed BSE cases are slaughtered.
This is the date at which the use of MBM in feed for all animals was introduced.At 16 October 2000, 9,423
animals had been slaughtered under this scheme.Compensation is payable
to owners according to the type of animal, pedigree and productive animals
are individually valued, while non-pedigree and non-productive animals are
compensated according to a formula set out in legislation.
c. Calf Processing Aid
Scheme
The CPAS was introduced
in the UK in April 1996 following the ban on UK exports of live calves, an
important export trade before the March 1996 BSE crisis. This was technically
a market support measure rather than a BSE control measure.At the close of the scheme
on 31 July 1999, just under 2 million animals had been slaughtered.
DATE-BASED EXPORT SCHEME
The EU banned the export
of British beef on March 20 1996. The DBES was put forward by the UK Government
as a route through which the beef ban could be lifted.
The DBES was implemented on 1 August 1999. It is founded on the premise that
contaminated feed was the cause of the BSE epidemic. With a comprehensive feed
ban in place since 1 August 1996, the scheme allows the export of beef from
eligible animals born since that date.
MAIN CONDITIONS OF THE
DBES
- only deboned beef and
beef products are exported
- exported beef is from
animals born and reared in the UK after 1 August 1996
- animals must be 6-30
months old at the time of slaughter
- at the time of slaughter
they are not the offspring of a BSE case or a suspect case
- they must have been clearly
identified throughout their lives and their movements recorded
- the dam of the animal
must have lived for at least 6 months after the birth of the animal
CONTROLS
Official databases and Government-appointed
vets are used to establish and verify dams’ survival.
Special approval is required
for all abattoirs and plants where DBES cattle are slaughtered and meat stored
or despatched. These plants may not handle cattle, beef or beef products that
are not eligible under the DBES. Approved cold stores must keep beef for export
in dedicated chambers. All beef exported under the DBES is transported in specially
sealed containers and an additional health mark is applied. Monthly checks by
Official Veterinary Surgeons are carried out to verify continuing observance
of the control measures in DBES- approved abattoirs.
European Commission veterinary
inspectors have verified that all the necessary technical operational procedures
and controls are in place.
RE-ESTABLISHING MARKETS
81 countries across the
world have now lifted their ban on the import of British beef. France is the
notable exception and continues to defy a ruling by the EC lifting the ban.
The EC is in the process of taking action against France for this breach. The
NFU is also pursing this issue through the courts. Traditionally France had
represented the largest market, importing 61,400 tonnes in 1995.
DOMESTIC CONSUMPTION
In 1995 we ate 901,000 tonnes
of beef (both home-produced and imported). Figures show that the confidence
of the British public in beef has returned to pre-BSE levels. Estimates for
this year are that Britain has consumed 950,000 tonnes of beef, of which 204,000
tonnes were imported. The British farmers’ share of our total beef market is
now 79% with the rest imported mainly from Europe and Argentina.
UK EXPORTS – comparison between 1995 and 2000
FRESH, CHILLED AND FROZEN
BEEF
| 1995 | 1995 | 2000 estimate | 2000 estimate | |
| Tonnes (carcase weight equivalent) |
£m | Tonnes | £m | |
| EU | 203,000 | 457 | 500 | 5 |
| (of which France) | 61,400 | 179 | 0 | 0 |
| Non-EU | 71,500 | 63 | Not available | Not available |
| Total | 274,000 | 520 | 500 | Not available |
UK IMPORTS – comparison
between 1995 and 2000
FRESH, CHILLED AND FROZEN
BEEF
| 1995 | 1995 | 2000 estimate | 2000 estimate | |
| Tonnes (carcase weight equivalent) |
£m | Tonnes | £m | |
Total EU & Non-EU |
173,000 | 344 | 204,000 | 357 |
Source: Meat and Livestock
Commission
COSTS OF THE BSE CRISIS
There is no single comprehensive
quantification of the economic and financial cost of the BSE crisis. However,
the following figures provide some guide:
| 1. |
Exchequer cost – aids to producers, (Source: HMG) |
£4.6b (about 45% of this sum is reimbursed to the UK by the EU) |
| 2. |
Lost value of beef – beef 274,000 (cwe)* (Source: MLC) |
£520m £79m Total £599m |
| 3. |
Other resource – includes fall in (Source: DTZ Pieda Consulting, 1998) |
£740m – 980m |
| 4. | NFU estimates (January 2000) of BSE-related costs to UK agriculture |
£m pa |
| – Loss of value of over 30 month cattle |
94 | |
| – Loss of value of animal products (1996) (formerly used of MBM, tallow etc) |
100 | |
| – Cost of collection and disposal of SRM |
11 | |
| – Cost of collection and disposal of animal by-products |
115 | |
| – Cost of SRM inspections (deferred until 31 March 2004) |
(20) | |
|
– Cost of alternative |
30 | |
| – Other administrative costs (eg removing sheep spinal cord, other control costs, DBES etc) |
– | |
|
Total
|
350 |
