Commodity Watch
At the recent meeting of the Beef and Lamb Committee, attention focused in on a number of matters the members wished to prioritise over the next number of months. Everyone is aware that 2014 has been a difficult year for beef producers; however as an organisation we must continue to identify new ideas or opportunities which will continue to sustain livestock farms in Northern Ireland.
A major emphasis during the Committees discussion was placed on marketing, both at the farmgate and also further through the supply chain. For many years pig and sheep producers have successfully marketed their finished produce through co-operative marketing groups, yet for some reason this has never worked to any great extent with cattle. Historically cattle producers both large and small have always taken great pride in making their own deal and presenting their finished stock at the abattoir. However in an era where both processors and retailers have grown into sizeable corporate entities, discussions should take place to ask the question as to whether beef farmers would be better collaborating together to help consolidate supply and collectively attempt to improve their marketing position and negotiate a better price for their produce with more suitable terms and conditions.
Producer co-operation is also not only about receiving a better price from the market, it can also allow for a more coordinated approach with the purchase of inputs and quicker access to market information which can allow producers to adapt quicker to changes in the market place. There is no doubt that producer groups are not going to be an option for everyone; however that should not stop the industry having the discussion as to whether it should be a feasible option for more beef producers.
Where our products go after the farmgate is also becoming a matter which we must pay closer attention too. A considerable amount of our Northern Ireland FQAS red meat goes into the Red Tractor market in the UK, but what other markets does the rest go to? Which countries have preferences for certain parts of the carcase? How much of an influence does that have on our farmgate prices?
As the LMC reported recently, China is a market with 1.35 billion people and with an increasing demand for a more westernized diet. Many of the world’s red meat export nations are all competing for access to this considerable market. While the UK must continue to progress trade talks with China, vacuums will open up in other parts of the world as priorities change for different exporting nations. It is becoming increasingly important that we as an industry identify where these markets are, what these customers require and look at ways in which restrictions which have previously held this trade potential back in the past can be removed.
The Beef and Lamb Committee will continue to hold progressive discussions in the future and would welcome the thoughts of the wider membership on any points of interest.
