Shoppers Warned Of 'Meat Price Rises'

UK shoppers could face rising meat prices, following a series of set-backs to the country's agricultural industry.

According to business advisory firm, Deloitte, the UK's agricultural industry has been hit hard by recent problems such as bird flu, flooding and a foot-and-mouth outbreak and the firm warned that the livestock industry was "almost at breaking point".

Richard Crane, food and agriculture partner at Deloitte, said: "A combination of factors is threatening the survival of the UK livestock industry. The rising price of wheat and soft commodities are compounding the negative impact of foot-and-mouth on the UK to a much greater extent."

Deloitte warned that many farmers were facing almost 100% price rises in feed costs. Mr Crane said: "UK shoppers will have to pay more for their meat. Increased prices will allow farmers to continue to meet the increasing demand for local, high quality meat.

"This is likely to be the inevitable cost of securing and also safeguarding the future of UK meat production. Without it, the opportunity to enjoy home-grown quality produce and British meat could become a rarity on supermarket shelves."

Deloitte also warned that repercussions from the foot-and-mouth outbreak could continue for much longer, as countries free from the disease would not want imports of fresh meat from countries, which had suffered outbreaks because of the danger that they may still carry the disease.

Mr Crane said: "If foreign markets close their doors to UK meat exports there could be cause for concern. The export of animal by-products such as the subprime cuts, which are exported to maximise returns, will not be available. The upshot is reduced returns to the farmers and the processors which could hurt the UK's £493 million-a-year meat export industry.

"The fall in UK meat production and subsequent product exports could also make way for the UK's foreign meat-producing competitors, to ramp up their production efforts and sustain a competitive edge over the UK. The longer the export ban remains in place, the longer our overseas markets become harder to re-establish."

Mr Crane said that the UK's meat business had suffered a "major blow", but added: "The recent lift of the movement ban means meat processors can resume production and retailers are after a period of much diminished supplies able to resume the supply of British produced meat."

(KMcA/SP)