CEO Report

Recent comments by George Eustice have caused alarm and deep concern within the industry, not least because of the apparent complete lack of understanding that seems to be radiating both from the Secretary of State and from Defra at the moment. Along with a directionless ELM scheme - which seems to have no livestock-relevant content or future plans for financial or food security stability - the beef industry could be forgiven for wondering how on earth they are going to continue to function as viable businesses.

We see - and understand - the drive to improve water, air and soil conditions, and agree that these issues need to be addressed; however, these simply cannot be undertaken at the expense of our deeprooted agricultural history. Our beef producers’ contribution to the country, both in respect of what their livestock contribute to the land and in terms of quality food production has been ignored – and Government continue to do so at the peril of our future food security and selfsufficiency. In its present state, ELM is unfit for purpose, and if it is allowed to progress along its current track will lead to serious financial trauma to our industry, further weakening our already fragile food security. The loss of livestock farming in the UK will see the beginning of the end for home produced food, and lead to a greater reliance on environmentally expensive and inferior quality imports, and the failure of Government targets. There will be no winners.

ELM in its current format is discouraging food production, discouraging participation and discouraging farming principles, and will lead to the exact scenario it is trying to prevent – a higher environmental cost from lower quality imported food and an inability of our population to feed itself. We are in the midst of a cost of production crisis; the immediate pressures on the industry in regard to rising costs are immense, and will add huge and uncertain costs to production. Even prior to the Ukrainian conflict, prices were rising exponentially. This coupled with the end of the CAP subsidy signals a catastrophic future on the not-too-distant horizon. Government can – and must – address this as a matter of priority. Following our departure from the EU, and our subsequent removal from the Common Agricultural Policy, we have an opportunity to devise a system that will be fit for purpose and made-to-measure for the UK.

The complete failure of Defra to address future payments in a timely fashion, coupled with the reduction in BPS payments, will see a tsunami of financial ruin heading towards our industry as early as 2024, when BPS reductions will hit 50%, with nothing currently on the horizon to fill the void. We are on the run in to our Beef Expo, which will be held at Darlington Market on May 28th. As well as the usual trade stands and cattle show events, this year’s Expo will include a series of seminars, with a broad range of topics including a look at future support within the industry. We have a list of speakers which I doubt has been equalled at similar events, and I’m sure will provide both insight and topical debate. One not to miss! Hope to see you there.