A senior representative from the British supermarket trade has defended the requirement that meat they purchase must be from cattle that have a maximum of four farm residencies.

Speaking at the annual conference of the NI Institute of Agricultural Science (NIIAS) last week in Templepatrick, Steve McLean, head of agriculture at British retailer Marks & Spencer, said he was content that the four-residency rule was correct. “We want a short supply chain where we don’t have cattle bouncing through marts and dealers. It is a policy we share with McDonald’s. We are comfortable with the four-residency rule. We don’t intend looking at it,” he said.

The issue has become topical in recent weeks given the intention of local meat plants to impose £150 penalties on cattle with more than four farm residencies. They have offered to defer the penalties to 1 June if marts agree to provide the information to buyers at the point of sale.

Whether the assurance from Marks & Spencer that it does not intend looking at the residency rule is enough to placate local marts is not known. In a press statement, the Livestock Auctioneers Association suggested that some British supermarkets are considering reducing the number of residencies to two. This would have obvious implications for their business and, according to meat plant sources, would also be vigorously opposed by them.

When answering a similar point made by MLAs at Stormont last week, NIMEA chief executive, Phelim O’Neill pointed out that the four-residency rule has been in place with most major British supermarkets and wholesalers for up to 18 years and there is no suggestion that it is going to change. Given that the price in the British market is so far ahead of European price, the new penalties are an attempt by processors to ensure that all NI cattle is eligible for this market, insisted O’Neill.

In its statement, the Livestock Auctioneers Association also raised concerns about the 30-day residency rule being imposed by meat plants (at least one plant has indicated that an animal must be on the last farm 90 days, or more, before slaughter). “This is clearly anti-competitive and a blatant attempt by NI abattoirs to control the fat cattle market by taking out their only competition – the live market,” read the statement.

The association also maintained that the live market has become an important outlet for smaller farmers who are unable to command the prices obtained by large feeders with local abattoirs.

It is a point picked up by a number of farmer representatives. Oisin Murnion of the National Beef Association told the Irish Farmers Journal that the mart was the only form of bargaining tool for many smaller finishers. He said that farm systems here are different to Britain, where cattle are mostly finished in large feedlots. “The meat plants are effectively discarding and dismissing our grass-based product. By imposing these penalties on cattle residencies, it is effectively interfering with the social structure of the countryside,” he said.

Supply chain

During his presentation in Templepatrick last week, Steve McLean acknowledged that there is a need for a sustainable beef supply chain where every part is in profit. However, he suggested that it was processors, not farmers who are currently under the most financial strain.

The latest research into consumer behaviour in both Britain and Ireland has highlighted that more consumers want to buy local food and a growing number are preparing their meals from scratch and eating in.

Explaining the trends, Henry Horkan who works for Bord Bia (the Irish Food Board) in London, told the audience at last week’s Northern Ireland Institute of Agricultural Science (NIIAS) conference that consumers are buying more raw ingredients and increasingly enjoy cooking their own food. This trend is driven by successful TV shows, such as the Great British Bake Off, suggested Horkan.

He described the modern consumer as “wanting everything” in that they want to buy local produce but also want value-for-money.

He said the desire to buy local is higher in Ireland than in Britain, which tends to reflect the fact that consumers in Britain are more removed from primary agriculture. However, Horkan maintained that an increasing number of British consumers want to buy British food.

A growing number also look for assurances about quality on the produce they buy (e.g. Quality Assurance logos) but, in general, most consumers expect retailers to provide them with quality produce irrespective of quality marks and logos, said Horkan.

Health

Looking ahead, he said that people are becoming more health conscious and want to buy low salt and low sugar produce. Online shopping will be a key area for retailers, as will be the challenge from discounters, such as Aldi and Lidl.

The NI beef industry has a strong future if it concentrates on producing a high quality product, not chasing volume sales, maintained Peter Hannan, from Hannan Meats in Moria, during his presentation to the NIIAS annual conference.

He urged a re-think within the industry, with a clear demarcation made between suckler beef targeted at premium niche markets, and dairy origin beef used to supply foodservice and the manufacturing beef sector.

“We produce some wonderful food, but we are not good at telling people just how good we are. We are not Brazil or Australia. It is not all about intensity or volume – it is all about quality,” said Hannan.

He insisted that supplying niche markets offered higher market returns, which will drive growth. Over the last four years, he has developed relationships with farmers supplying Shorthorn and European Angus beef which he said was a partnership built on mutual interest. “Farmers and processors are in one boat” he claimed.

Hannan also maintained that he has concentrated on native breeds mainly because they have lower input costs for producers compared with continental breeds, not because of any particular issues around eating quality.