Meat ‘future lies in the quality end of market’

Apr 10 2008 The Journal

THERE is a growing and sustainable demand for English meat which producers can profit from, according to Norman Bagley, policy director for the Association of Independent Meat Suppliers.

Mr Bagley’s upbeat assessment came as he delivered the Royal Agricultural Society of England’s President’s Lecture this week.

He believes that the future lies in concentrating on the quality end of the market, ensuring levy funds support sales and stop trying to compete for “value” and discounted sales.

Mr Bagley also listed a series of factors which were unhelpful to developing sales of English red meat.

He said: “Store wars, where supermarkets vie with each other to cut the cost of English meat that is in short supply, is a very unhelpful trend.

“Similarly, raising the cost of meat inspection through the Meat Hygiene Service is counter productive.

“We have an MHS that currently costs some £90m plus a year to run that we believe could be delivered for not much more than half that amount.”

Mr Bagley, who was also winner of the 2007 RASE National Agricultural Award, said there was plenty of evidence that consumers wanted quality English meat.

Beef, pork and lambs sales are all increasing in both volume and value.

He said: “Producers have a future if they realise that trying to compete with imported product is something they cannot possibly do in the face of store wars and discount pricing.

“They must aim instead at getting a bigger proportion up into higher value, quality based brands and standard ranges whether through supermarkets or the independent sector.”

He added: “The sheep industry may also contract, but I also think they have a far more powerful tool than beef with which to get a more realistic return and that is to make common cause in the market place with the New Zealanders and therefore maximise profit in season.” Mr Bagley said they must get the Government to recognise the environmental value of sheep.