Memorandum submitted by Mrs Jilly Greed
(RAS 24)
THE FUTURE
OF THE
SUCKLER BEEF
SECTOR: JILLY
GREED—DEVON
BEEF PRODUCER
1. The suckler beef sector has been hit
hard by CAP reform. We are now seeing a significant reduction
in the national herd in both the UK and Europe. This will have
long term environmental impact especially on the grazing management
of the uplands and lowlands of this country, as well as the supply
chain.
2. This is a flagship industry. Many improvements
are being made at farm level to improve efficiency and quality.
However, the reality is that unless farm gate prices increase
by 40% over the next three years to cover the real cost of production,
the long term prospects for the suckler beef industry is grim
and unsustainable for the beef producer.
3. I have no illusions about supermarket
supply chains and how these need to be strengthened and improved,
brands developed and fair prices paid to producers. I recently
went on a beef study tour of Argentina and Brazil with Tesco to
see their South American supply chain, visiting farms and the
processing industry. It opened my eyes to global trade.
4. The cost of production on our farm is
£2 per kilo and we are efficient producers through our system.
It is significantly lower in South America (Argentina is 90p and
70p in Brazil) helped greatly by scale, low labour, little regulation
and environmental constraint. On our farm, we are currently paid
an average of £2.08 per kilo in a forward price contract
with Blade Farming South West that has been mutually beneficial.
However, despite prices strengthening through the export market
opening up, we are making no profit and depend on SFP to survive.
5. In reality, we need to be at £3
per kilo to ensure a future, where we can invest back into the
farm. Are supermarkets really prepared to pay these prices and
pass the extra cost to their customers? I think not, so the squeeze
at producer and processing level will just continue, despite the
rhetoric.
6. To conclude, I do not think the UK suckled
beef sector will be able to survive in a global marketplace unsupported.
7. Other forms of support for good environmental
management to preserve out national heritage, bringing a visible
public benefit and high quality to local and regional food, will
be crucial.
BACKGROUND
8. I am a 4th generation beef producer farming
in Devon in the flood plains of the Exe and Culm, near Exeter,
with my husband Edwin on a 500 acre family farm.
9. Earlier this year I went on a five day
beef study tour of Argentina and Brazil with Tesco and other industry
representatives to see their South American supply chain, visiting
farms and the processing industry. I am a council member of the
National Beef Association South West and member of the CLA Food
Chain Initiative Committee. I am also involved in the PR and marketing
of regional food through Taste of the West.
10. Our farm is divided almost equally between
permanent water meadows and arable land with every field on the
holding in a Nitrate Vulnerable Zone as well as a triple SSSI
(site of special scientific interest). Our business focus is to
keep it simple and concentrate on what we do best. Our aim is
long term sustainability and we are adapting to the new era of
CAP reform by adding value to our enterprises and reducing cost
wherever we can.
11. The three main enterprises are quality
suckled beef, energy crops and the environment, with Countryside
Stewardship and Environmental Level Schemes, to increase the endangered
cirl bunting and grey legged partridge. Meanwhile we are seeing
other species thrive on the farm, in particular skylarks, otters
and kingfishers.
12. We have a closed suckler herd of spring
calving South Devon and Blonde beef cattle, pure and cross bred,
with over 50 years of bloodline between them and high herd health
plan and strict bio security. Farming in the flood plain means
we cannot out winter, so cows and calves graze the river meadow
from early April to the end of October and are then housed in
a mix of modern and traditional buildings.
13. We do not have a large labour force.
25 years ago six men were employed on the farm, seven years ago
four, and now there are only two, Michael who has been with us
for 31 years and my husband Ed. With other wintering costs and
pressure on available buildings, efficient beef production systems
and reducing costs including labour are crucial.
14. A supply chain system and partnership
that would give us added value and extra margin was also key.
Which is why we became a member of Blade Farming South West in
October 2004, agreeing a forward contract that rewarded quality
and consistency—but also ensured a high level of technical
backup and expertise to improve what we do and reduce cost.
15. However, we are very dependent at the
moment on SFP to continue farming and without this payment, we
would not be in business. This was reinforced by the considerable
delay in the SFP payment, which remains unresolved, but certainly
concentrates the mind!
June 2006
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