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Processor deductions highlight unfairness in the supply chain

16 October 2024

Lambs for auction coming out of a trailer

ʼһis urging for fairness in the supply chain, as reports of price deductions in the processing sector result in farmers being penalised for factors that are out of their control. 

ʼһis aware that price deductions for animals coming from the BTV RZ (bluetongue virus Restricted Zone) are being implemented within the processing sector and passed back down to the farmer.

This is disappointing and unacceptable. ʼһregards this as a case of farmers having unfair costs passed back to them.

Farmers within the RZ are working with APHA and Defra to help slow down the spread of the bluetongue virus. However, being within the zone has challenging implications for businesses, particularly surrounding movement restrictions.

It is therefore unfairly penalising farming businesses to receive financial penalties through processors’ price deductions, despite the animals being perfectly fit for the food chain and despite the farmers having no choice but to be in the RZ.

“Fairness in the supply chain is essential to a thriving industry and I would urge other processors not to follow suit.

NFU Livestock Board chair David Barton

Supply chain fairness is vital

NFU Livestock Board chair David Barton said: “We are incredibly disappointed to hear that some farmers in the Restricted Zone are being unfairly penalised by having deductions taken from some processors in the supply chain.

“Livestock farmers up and down the country are facing a very difficult time with the threat of the bluetongue virus and they are doing everything they can to limit the spread by adhering to biosecurity measures in the RZ.

“Fairness in the supply chain is essential to a thriving industry and I would urge other processors not to follow suit. We will continue to raise our concerns with Defra, that the requirements being imposed on processor is adding costs, but we must see farmers within the RZ are treated fairly.”

ʼһhas raised this disappointment directly with Defra. While the NFU does not condone this behaviour from the processing sector, we understand it is likely due to the challenges placed on processors by the BTV Defra imposed FSA (Food Standards Agency) restrictions.

For example, processors must meet strict requirements on lairage and lorry disinfection when taking animals from the RZ.

Consistent application of rules

ʼһhas therefore been asking Defra to ensure the FSA rules are applied consistently, and to review whether the current requirements placed on processors are proportionate to the risk of BTV, especially as we head into the colder months.

“We will continue to raise our concerns with Defra, that the requirements being imposed on processor is adding costs, but we must see farmers within the RZ are treated fairly.”

NFU Livestock Board chair David Barton

ʼһinsists that BTV related costs are absorbed by the entire food chain, rather than being unfairly passed back down to the farmer. It must be reiterated that BTV does not prevent animals or milk entering the food chain.

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