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| Horsemeat scandal: farmers 'must not bear cost of tighter regulation' | Horsemeat scandal: farmers 'must not bear cost of tighter regulation' |
| (8 days later) | |
| Hard-pressed farmers have warned that they could be driven out of business if they are forced to pay for tighter regulation and testing as a result of the horsemeat scandal. | Hard-pressed farmers have warned that they could be driven out of business if they are forced to pay for tighter regulation and testing as a result of the horsemeat scandal. |
| "Profit margins on beef are wafer thin and not sufficient to bear additional costs," said Charles Sercombe, chairman of the National Farmers Union's (NFU) livestock board, at the union's annual conference in Birmingham. | "Profit margins on beef are wafer thin and not sufficient to bear additional costs," said Charles Sercombe, chairman of the National Farmers Union's (NFU) livestock board, at the union's annual conference in Birmingham. |
| He spoke after Philip Clarke, chief executive of Tesco, told the conference that the UK's biggest supermarket would source more meat in the UK and step up scrutiny of suppliers, including installing video cameras at their factories. | He spoke after Philip Clarke, chief executive of Tesco, told the conference that the UK's biggest supermarket would source more meat in the UK and step up scrutiny of suppliers, including installing video cameras at their factories. |
| That prompted a string of farmers to warn that they could not cope with extra red tape as a result. One farmer said: "That cost cannot come back to us. We are not making any money out of the system and if it comes back to us you won't have beef, chicken, lamb or pork producers." | That prompted a string of farmers to warn that they could not cope with extra red tape as a result. One farmer said: "That cost cannot come back to us. We are not making any money out of the system and if it comes back to us you won't have beef, chicken, lamb or pork producers." |
| Farmers' concerns were raised as neither retailers nor the government have made clear who might bear the cost of tougher regulation after horsemeat was found in a number of ready meals labelled as beef. In recent years farmers have been forced to pay more of the cost of regulation including bovine TB testing and stricter regimes on dead animals introduced after previous food scandals including BSE. | Farmers' concerns were raised as neither retailers nor the government have made clear who might bear the cost of tougher regulation after horsemeat was found in a number of ready meals labelled as beef. In recent years farmers have been forced to pay more of the cost of regulation including bovine TB testing and stricter regimes on dead animals introduced after previous food scandals including BSE. |
| The environment secretary, Owen Paterson, told the conference the horsemeat scandal could be a "fantastic opportunity" for British farmers. He said consumers had had "a horrible shock" from the mislabelling of horsemeat as beef, which had "shaken confidence" but raised interest in local produce. | The environment secretary, Owen Paterson, told the conference the horsemeat scandal could be a "fantastic opportunity" for British farmers. He said consumers had had "a horrible shock" from the mislabelling of horsemeat as beef, which had "shaken confidence" but raised interest in local produce. |
| "British food should be recognised for its rigorous traceability and standards," he said. "Our farmers and producers must not be tarnished as a result of the fraudulent activities of criminals." | "British food should be recognised for its rigorous traceability and standards," he said. "Our farmers and producers must not be tarnished as a result of the fraudulent activities of criminals." |
| Paterson said the European Union, at his urging, had brought forward to this summer discussions on how to label food with its country of origin to help shoppers make informed choices. Many farmers have been frustrated that current rules mean meat from other European countries can be labelled as British if it is merely packaged or processed in the UK, which they say undercuts their premium products and misleads consumers who want to buy British. | Paterson said the European Union, at his urging, had brought forward to this summer discussions on how to label food with its country of origin to help shoppers make informed choices. Many farmers have been frustrated that current rules mean meat from other European countries can be labelled as British if it is merely packaged or processed in the UK, which they say undercuts their premium products and misleads consumers who want to buy British. |
| Tesco offered the first sign of a potential boost for British farmers as it pledged that it would buy all its fresh chicken from the UK by July and that frozen and ready meals would follow suit in future. It already sources all its beef in the UK and Ireland and wants to buy more pork and lamb closer to home. | Tesco offered the first sign of a potential boost for British farmers as it pledged that it would buy all its fresh chicken from the UK by July and that frozen and ready meals would follow suit in future. It already sources all its beef in the UK and Ireland and wants to buy more pork and lamb closer to home. |
| "As market leader in the UK it is our responsibility to lead the way out of this crisis," Clarke said. | "As market leader in the UK it is our responsibility to lead the way out of this crisis," Clarke said. |
| He admitted that Tesco had not always treated its suppliers well and promised a "root and branch review" of its supply chain with the help of external experts. | He admitted that Tesco had not always treated its suppliers well and promised a "root and branch review" of its supply chain with the help of external experts. |
| Farmers welcomed the move and Tesco's promise to sign longer-term contracts with farmers that would give them more security. | Farmers welcomed the move and Tesco's promise to sign longer-term contracts with farmers that would give them more security. |
| However, Tesco is playing catch-up as the supermarket currently sources 30% of its chicken outside the UK. It trails its rivals Sainsbury's and Waitrose, which already source all their own-label chicken in Britain, while Morrisons buys the majority of its chicken in the UK apart from some sold under its cheaper Hemsley range introduced in November. | However, Tesco is playing catch-up as the supermarket currently sources 30% of its chicken outside the UK. It trails its rivals Sainsbury's and Waitrose, which already source all their own-label chicken in Britain, while Morrisons buys the majority of its chicken in the UK apart from some sold under its cheaper Hemsley range introduced in November. |
| Peter Kendall, president of the NFU, said a survey carried out by the organisation had found more than 86% of people wanted to buy traceable food produced on British farms. About eight in 10 people polled said they wanted supermarkets to sell more food from British farms. | Peter Kendall, president of the NFU, said a survey carried out by the organisation had found more than 86% of people wanted to buy traceable food produced on British farms. About eight in 10 people polled said they wanted supermarkets to sell more food from British farms. |
| "Farmers have been furious about what has happened," he said. "We now need the supermarkets to stop scouring the world for the cheapest products they can find and start sourcing high quality, traceable product from farmers here at home." | "Farmers have been furious about what has happened," he said. "We now need the supermarkets to stop scouring the world for the cheapest products they can find and start sourcing high quality, traceable product from farmers here at home." |
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