Rooker warns again of red meat profiteering

Farming and food minister Lord Rooker has repeated warnings to the red meat supply chain against “profiteering” at the expense of British farmers.

Rooker referred to “serious allegations” on lamb prices in particular. He was speaking at the last conference organised by the Meat & Livestock Commission (MLC) before it is absorbed into the new UK statutory Agricultural and Horticultural Levy Board on April 1.

“This is a warning to the industry against profiteering,” said Rooker. “Everyone in the supply chain needs to be making a profit.” His comments follow a similar warning​ to the pig meat supply chain last year.

But, while accepting the difficulties that lamb producers currently faced, he stopped short of offering the sector financial support. “I recognise there are some severe difficulties ahead of us, particularly for the sheep sector, but we are in no position to offer assistance,” said Rooker. “DEFRA [the Department for Environment, Food and Rural Affairs] doesn’t have any money anyway.”

MLC chairman Peter Barr claimed below cost selling caused by increasing competition between retailers would seriously damage the sector. “The situation is unsustainable,” he warned. “Our farmers cannot continue to be paid less than the cost of production.”

Recognising how badly sheep farmers are faring, Morrison has publicly committed​ to sourcing 100% British fresh lamb, while Waitrose is paying 20% above the market price for lamb.

Sainsbury’s trading director Mike Coupe said the retailer was committed to securing a future for a sustainable UK meat and livestock sector, but warned that it could not baulk the market.

Sainsbury recognised that its customers wanted British and locally produced fresh lamb and beef, said Coupe: “But quality, taste and value have to be there too.” While increasing the amount of British red meat it sourced, Coupe remarked: “But we are not going to stop getting New Zealand lamb.”

He accepted that it took time for red meat producers to adapt their production to meet changes in demand, but added: “You must also recognise we cannot make the changes you want overnight.” However, he said: “My ambition is to have named farms on all our products.”

Coupe said sustainability in the red meat sector had to take account of economic, environmental and social issues. “Behaving sustainably clearly goes beyond environmental issues,” he said.