As highlighted in last weeks’ edition, a number of the charges applied at slaughter are likely to increase from 1 June 2026.
Looking at kill sheets, it is notable just how many individual deductions are now made and it is understandable that farmers might question why factories pass on costs that are a normal part of running a business.
For example, 50p per head is taken off farmers when grading beef cattle, yet grading is something factories (not farmers), are legally required to do.
There are also the likes of waste disposal charges as well as meat inspection work undertaken by DAERA vets on behalf of the Food Standards Agency (FSA). Abattoirs can’t operate without an official vet being present, so this is essentially another cost, similar to labour or energy.
The costs charged by the FSA are substantial, leading some to suggest the service should be tendered to the private sector. But while the hourly rate for an official vet is set to increase to over £63, given recent wage inflation and other employment costs, it is hard to see how a private company could come in significantly below that level.
Other costs
There are also clipping costs during the winter months and stiff insurance charges, especially for cull cows. On that latter issue, factories point to the recent rise in the number of cattle being skipped due to bovine TB – the unpalatable alternative is that they do away with insurance and pay farmers nothing when an animal shows up with the disease.
Of course, factories could just absorb all the charges and simply pay farmers less for cattle, but that is actually not a good scenario – when the charges are listed out on a kill sheet, at least it provides a certain level of visibility.
It also brings accountability onto those various organisations who have managed to secure a levy off farmers to help fund their activities. That includes the LMC at £1 per head and Animal Health and Welfare NI at 50p per head. As reported last week, AgriSearch have agreed a significant hike in its levy from 1 June, which on beef, increases from 30p to 90p per head. With that increase will come greater scrutiny on what AgriSearch does to benefit the sector.