Farmers could be left with only one outlet to process fallen stock if plans put forward by the rendering sector in NI are followed through.

The issue is an indirect result of the decision of the World Health Organisation, endorsed by the European Union last week, that beef from NI has achieved the lowest possible risk status for BSE (negligible risk).

Up to this point, NI beef has had a ‘‘controlled risk’’ status, meaning that various parts of the carcase had to go for rendering as category one animal by-product, with the resultant tallow (fat) and meat and bone meal unable to enter the human food chain. However, negligible risk status changes the amount of material destined for category one. Under controlled risk status, cattle at slaughter produced 40 to 50kg of category one material. Under negligible risk status, this could eventually drop as low as 13kg to 14kg per animal.

With various parts of the carcase such as tonsils, spinal column, intestine and tissues around the intestine no longer seen as high risk, some could, in theory, now enter the human food chain. The alternative is to process this material as low-risk category three animal by-product.

As such it can then be used as fertiliser, pet food or making the likes of soaps or detergents. It therefore is of higher value than category one by-product where the resultant tallow is generally limited to use as a fuel in energy production.

However, with negligible risk status resulting in much less category one material to process, it will leave the rendering industry in NI significantly over-capacity.

At present, there are two outlets, Linergy in Dungannon, and Foyle Proteins in Campsie. Both process category one animal by-product as well as fallen stock which are classed as category two.

It is understood that Linergy, which is owned by a combination of Italian rendering company SAPI, Fane Valley, Linden Foods and the Dobson brothers (Dunbia), has proposed moving from category one to category three processing. That looks like a logical business decision, but given that a category three factory cannot then process either category one or two material on site, it would mean that Foyle Proteins is the only outlet remaining for fallen stock.

In return, DAERA veterinary officials have highlighted their concerns that NI would not then have the necessary rendering capacity in the event of an outbreak of animal disease (in cattle, sheep, pigs or poultry).

While there are options in the Republic of Ireland for category one material, moving it might not be possible if disease were to hit, especially in a Brexit scenario.

It is understood that the industry has indicated to DAERA that if it wants NI to retain two local outlets to render deadstock, then Government should meet some of the cost of keeping these facilities operational.

Disposal costs

That issue aside, there is no doubt that achieving negligible risk status is very positive news for the local beef industry.

An improved reputation in international beef markets should deliver a boost to trade (previous estimates were that it could eventually be worth £12m per year). There is also the potential to deliver £1.2m of savings in waste disposal costs at slaughter (worth around £3/head).

While sources in the trade maintain that it will take time to establish new processes and new markets for product, it is hoped that farmers will see some initial savings in waste disposal costs in the coming weeks, with more to follow.

There are also some issues to be sorted around identifying cattle on APHIS that have controlled risk status (eg Republic of Ireland-tagged cattle) v NI cattle with negligible risk status. Cattle with a controlled risk status will have to be processed separately.