Cracknell alarm over label costs
Hope is fading for a change in the proposed EU beef labelling scheme to avoid a further sharp increase in meat processing and distribution costs. Industry leaders have been warned by MAFF it may be too late to prevent the new law including rules demanding identification of steer, heifer and young bull beef throughout the packing and marketing system.
This requirement for categorisation of cuts and joints up to point of retail sale according to the type of animal could increase processing costs by at least £20 per beast, and possibly much more, according to Richard Cracknell, md of slaughtering industry leader Anglo Beef Processors.
Speaking at the British Meat Federation conference on May 19, Cracknell was supported by many processors who had been shocked when reports of the proposal emerged just a couple of days earlier (The Grocer, May 20, p24).
He warned of potentially serious disruption throughout the supply chain. "I would suggest this will be the end of bull beef production," said Cracknell, and several other abattoir operators warned they would be tempted to abandon killing heifers rather than incur the costs of differentiation right along the production and lacking lines.
Conference guest speaker Bob Bansback, MLC's corporate strategy director, was asked about the opportunity for altering the draft EU law and warned: "The regulation is very nearly there....we have just a very small opportunity for change." Other industry sources indicated they had been offered a similar pessimistic assessment by MAFF and in Brussels.
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