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Beef Supply Shock On the Way - NBA
30/07/07

Government, consumers and retailers must get used to the idea that the days of over-cheap food are over, the National Beef Association has warned.

© www.jennifermackenzie.co.uk

beef cattle

It says there is too much complacency at all levels and not enough notice taken of the increased population pressure on the world’s food and energy production resources – or the impending impact of millions more people in China, India and South America demanding their share of access to commodity markets that were once the almost exclusive reserve of the leading Western nations.

“Fuel, food and other basic raw material prices will all feel the heat when the full force of this demand is unleashed,” forecast new National Beef Association director Kim Haywood.

“Signs of this new pressure on the food market are already evident in the UK through corrective rises for previously undervalued ex-farm dairy products and grain and they will eventually exert themselves in the seriously underappreciated red meat sector too.”

But according to the NBA die hard attitudes could still kill off important domestic supply routes. Government is still fixated by its low food price inflation policies even though it has conceded that climate change means food can no longer be produced, and energy consumed, as if the world had infinite resources.

While supermarkets continue to pursue outdated pricing policies in which home produced beef is consistently sold for less than it costs to produce and consumers, who appear to show no real appreciation of the true value of food, seem blissfully unaware that current retail pricing systems make future supplies of British beef so untenable that current supply levels cannot possibly continue.

“Some huge shocks are on the way and the NBA is worried that too many people, across all spectrums, will be taken by surprise,” said Ms Haywood.

“Calamity, in which shrinking global food supplies coincide with a reduction in the UK’s food production, can only be avoided if food producers earn enough income to stay in business.”

“Hopeful signs of supply sustainability are beginning to emerge in the cereals and dairy sectors but struggling beef farmers will be forced to throw in the towel unless they too can see enough income encouragement to persuade them to stay in business.”

“And if government, retailers and consumers take no action because they think ample world beef supplies will continue to be available they can think again because the five year forecast is that there will not be enough surplus beef in the world to top up EU supplies – never mind satisfy new consumers in emerging economic hot spots.”

link UK Beef Exports Hit 122 Million
link Beef Farmers Await Positive Price Signal
link Beef Import Record of Major UK Supermarkets Revealed

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