Memorandum submitted by the British Hospitality
Association (Pigs 27)
THE PIGMEAT
INDUSTRY
1. The British Hospitality Association is
the national association for the hotel, restaurant and catering
industry. Our members include every publicly quoted hotel group,
major restaurant chains and independent restaurant businesses,
together with every major food and service (contract catering)
management company, motorway service area operators and clubs.
We also have in membership the two largest wholesale food suppliers,
two major retailers and a major food service supplier. Our members
employ over 500,000 people in over 40,000 locations.
INTRODUCTION
2. Many members of the BHA who are principally
involved in food service (the contract catering cost sector) have
publicly stated their position with respect to the purchasing
of meat (all species), which is to buy from UK sources. Indeed
where they are involved in public sector catering, eg in schools,
hospitals and prisons, they follow the guidelines laid down in
the Government's Public Sector Procurement Strategy.
ISSUES WITH
RESPECT TO
THE COMPETITIVENESS
OF ENGLISH
PIG MEAT
3. There are issues for food service businesses
both in the cost and profit sector with respect to the purchasing
of English pigmeat:
(i) The implementation of the Welfare of Farmed
Animals (England) (Amendment) Regulations banning amongst other
things the use of tall stalls and tethers was unilaterally imposed
by the UK Government well ahead of any other EU member state and
required an investment by British pig farmers in new systems and
buildings for which they have received no financial return.
(ii) At the same time as the imposed investment
above there was a fall in pig prices below the cost of production.
This lead to the contraction of the UK pig Industry over the last
10 years so that the production of UK pigs has fallen by over
100,000 pigs per week.
(iii) British pig farmers do not castrate male
pigs for slaughter, whereas on the Continent they castrate. The
practice is seen as a welfare issue; however there is a benefit
in lean meat growth and feed conversion efficiency. There is,
however, a greater tendency towards "boar taint" which
can affect 5-10% of British pork which is clearly a quality issue.
(iv) When financial pressures occur, British
producers tend to slaughter later in the pig's life which, again,
increases the tendency towards boar taint.
(v) Animal feed imported by the Netherlands and
Denmark is landed in Rotterdam and the price of the feed is cheaper.
UK producers pay a premium on prices and are therefore at a disadvantage
with their continental rivals.
(vi) The UK is competitive with other EU countries
for shoulder and belly pig meat, but loins and legs are 15-23%
more expensive. UK back bacon which is overwhelmingly preferred
by consumers is 40% dearer than streaky bacon.
(vii) UK pig farms have received a premium for
their pigs compared to Danish and Dutch producers over the last
10 years. This has been as much as 15-20p/kg. Where continental
producers operate equivalent UK standards (e.g. removal of sow
stalls and tethers), they receive c 5p/kg premium for their added
investment.
SUPPORT FOR
THE ENGLISH
PIG MEAT
INDUSTRY BY
FOOD SERVICE
4. While food service businesses wish to
support English farmers, including the pig meat sector, the pressure
of increased food costs has never been higher. Food service businesses,
eg Compass, have promoted English pig meat through "Best
of British" promotions which have gained consumer support
by identifying the provenance of the pork and also promoting Free
Range pig meat.
ACTION BY
GOVERNMENT NEEDED
TO SUPPORT
ENGLISH PIGMEAT
INDUSTRY
5. The UK Government should take action
to ensure that English Pig producers compete on a level playing
field with their European competitors. This can be achieved by
pressing the EU to ensure Member States introduce Animal Welfare
Regulations for pigs across Europe which meet the same requirements
as in the UK sooner than the agreed timescales.
The structure of the English Pig Meat Industry
could also be modified to adopt elements of the Co-operative model
used in Denmark and Holland where knowledge transfer of research
and best practice is more swiftly adopted by producers. This should
be accompanied by fiscal measures to support the Industry and
make it more efficient and competitive.
John Dyson
Food and Technical Adviser
British Hospitality Association
October 2008
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