Where’s the beef? - Farmers urged not kill `Cash Cows'

A couple of years ago the full horror of the Australian drought was brought home to me when, at a food trade show in Paris, the European representative of Meat and Livestock Australia told me that many beef farmers in affected areas were sending perfectly good breeding beef cows for slaughter to be eaten because there simply wasn’t enough water to keep them alive.

Now it seems that some farmers in the UK are sending their breeding cows to be slaughtered for meat for a very different reason. Because prices are so high, they are getting much more money than they would ever have anticipated, and they’re cashing in.

A good `suckler’ cow could have as many as ten calves during her lifetime, although seven or eight is nearer the norm for traditional breeds, falling to five for the commercial breeds. Until recently when beef from animals over thirty months old was banned from the human food chain these animal had to be processed under the Over Thirty Months Scheme…the OTMS, when they reached the end of their productive life. The sum paid for these animals, which were simply killeds and incinerated was small, maybe reaching two to three hundred pounds per head.

Now, with restriction lifted, older cows being sent for slaughter and which can be eaten, are getting as much as eight hundred pounds each according to the National Beef Association, the NBA, which is throwing its hands up in horror at this development. It believes the early killing of prime breeding stock depletes the supply of heifers and steers to eat which will be born in the future….and warns this is a bad move when the future is looking ever rosier for beef farmers.
OK, this might seem a bit strange, an organisation representing farmers actually predicting that prices will rise, and now is not the time for retrenchment or profit taking. But the NBA is probably right, world population isn’t going to fall, and there will continue to be an inexorable rise in the consumption of beef in the Far East. Add to that a reduction in the land area available for livestock in South America because soya or sugar cane is actually more profitable than meat, and such optimism makes sense.

However a big question mark hangs over all of this in the strength of the consumer economy in Europe, and particularly in the UK. A beef farmer with whom I talk regularly told me the other day that he firmly believes that if the economy continues to falter, in a few years time meat will become a weekly treat, not a daily staple.

The other big problem is that the price that farmers are getting for their beef may be rising ever faster, but so is the cost of producing that beef. This could wipe out any of the benefits from higher prices, so some farmers may see some sense in cashing in their `cash cows’ now whilst they can still make a fast buck.

For the consumer this could mean facing much higher beef prices five years `down the road’ when the supply of beef dries up, not just from European farmers but also from parts of the world, i.e. South America which were traditionally seen as an alternative when UK beef producers started asking to be paid more.