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Greater Transparency Needed in Beef Supply Chain

23 August 2016

UK - A lack of transparency throughout the British beef supply chain is affecting returns for all and the industry needs to start to work together better to deliver greater efficiency, according to the Agriculture and Horticulture Development Board (AHDB).

Summarising a series of analyses into current pricing of beef carcasses, AHDB Beef & Lamb suggests the market isn’t currently working to the benefit of either producers or processors, with producers seeing a reduction in returns and processors not getting the mix of carcasses that their customers require.

AHDB undertook the analysis following reports of changes to pricing specifications by processors, however the resulting analysis found difficulties on both sides.

Stephen Howarth, AHDB Market Intelligence Market Specialist Manager, said: “A more transparent environment, allowing more positive, open relationships to develop across the supply chain, would potentially benefit everyone.

“It would give producers more certainty about future market requirements, encouraging them to make the changes needed to deliver consistent carcasses. In return, processors would get more certainty that they will be able to secure the supply they need. It would be a clear win-win for both groups of levy payers.”

The report found that only relatively small adjustments to carcass classifications are needed for producers to significantly improve returns.

AHDB is implementing changes to price reporting systems in the coming months to make it easier to monitor pricing trends going forward.

TheCattleSite News Desk

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