A new report from the Soil Association claims UK organic beef producers are getting short-changed by processors and some key supermarkets who aren’t paying enough to cover the costs of production.
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The report, called ‘Where’s the beef?’, argues that the current farmgate price of organic beef is unfair and unsustainable. The average price for organic beef in 2006 was in the region of £2.90 per kilo. This compares with the average cost of production of over £3.30 per kilo over the same period, leading to a loss of around 40 pence for every kilo of beef produced.
The Soil Association said that combined with supermarkets shopping abroad for organic beef, when there is more than enough supply of UK meat, these factors are endangering the security and development of organic beef production in the country and leading to unnecessary carbon emissions.
With 70% of organic beef in the UK sold through supermarkets, most beef production is affected by these conditions.
The Soil Association said it was calling on retailers and processors to demonstrate their commitment to UK organic beef by supporting increases in the prices they pay by at least 10% next year, and offering long-term supply contracts through the established organic livestock marketing groups.
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By GlobalDataPhil Stocker, the Soil Association’s head of food & farming, said the intention wasn’t to attack the supermarkets, but find a workable framework for UK organic meat which, he stated, meant providing more stability for the UK’s beef, pork and lamb producers.
“The issues raised in this beef report are similar or worse for every organic meat sector,” he said. “We focused on beef because it is an area where supply could meet demand year round almost immediately, and the public would expect this iconic product to be British. Unless we overhaul market structures, and implement some of the changes suggested in the report, there won’t be a UK organic beef sector of any scale.”
To avoid the continual rise in imports of organic beef, the report is recommending that supermarkets should make pledges to increase the volumes of beef they are prepared to source from the UK in the future. A commitment to clear targets would give farmers the security they need to expand production, it said.
Stocker said: “There is a clear and urgent need to relocalise food production and distribution, given the challenges we face from climate change and peak oil. Countries like the UK should be building their food supplies around their indigenous population, with limited trade to fill the gaps.
“The worry is that unless beef production becomes more viable then people will choose not to eat it and this will have a knock-on effect for the supermarkets. They will have to pay the prices to cover the production and of course the prices will have to be passed onto the consumer, but I do believe that people will pay more knowing it will contribute to helping the British countryside and the economy.
“It may lead to people choosing to pay a little extra and eating a little less meat, but this is something that has been noticed already anyway.”
