Ref. Ares(2016)1889217 - 21/04/2016
Ref. Ares(2016)5579867 - 27/09/2016
From:
(CAB-HOGAN)
Sent:
Thursday 21 April 2016 9:50
To:
CAB HOGAN ARCHIVES
Subject:
FW: Agricultural Ombudsman
Attachments:
ombudsman (1).docx; ATT00001.htm
For registration and invites table please.
Thanks a mil.
From: TYNAN Tom (CAB-HOGAN)
Sent: Thursday, April 21, 2016 7:59 AM
To:
(CAB-HOGAN)
Subject: FW: Agricultural Ombudsman
For ARES
and invites list
Thanks
Tom
From: HOGAN Phil (CAB-HOGAN)
Sent: Thursday, April 21, 2016 1:10 AM
To: TYNAN Tom (CAB-HOGAN)
Subject: Fwd: Agricultural Ombudsman
Sent from my iPhone
Begin forwarded message:
From:
Date: 20 April 2016 at 20:37:09 GMT+9
To: <xxxx.xxxxx@xx.xxxxxx.xx>
Subject: Agricultural Ombudsman
Dear Mr Hogan,
I am emailing you in my capacity as
of the National Beef
Association, a UK wide trade association representing the beef industry and
with a large membership of commercial and pedigree farmers.
The primary producers of milk, beef, lamb etc are all suffering a sustained
period of poor pricing and are liquidating their assets to scrape by. The beef
industry is dominated by a few large processors, they by their size have an
undue influence on the market and pricing. The individual producer has little
or no influence regardless of the size of their business.
Beef prices in the UK have now dropped to a five year low and yet the retail
price has remained relatively static with a 1-2% increase.The idea of price
fatigue amongst consumers is often mentioned, i.e. beef is just too
expensive, this would hold more water if retail price had moved downwards
with the cattle price. The truth is retail price has moved up 1% whilst on farm
prices have been slowly, week by week, coming back to this point where
farmers are getting around 46% or less of retail price, there is room for
retailers to bring back shelf price and stimulate sales.
The recent in-store marketing of beef has been either abysmal or non
existent with product poorly displayed with price promotion mainly on
imported product.As well as price as a factor of sales there needs to be
promotion of the product, in recent years beef promotion has been obvious
by its absence. Who has the responsibility to market our product, of course it
starts with the producer ensuring quality but once it leaves our hands? AHDB
has a responsibility as our levy body to allocate a share of our levy to keeping
beef in the minds of consumers, but what is the responsibility of the
supermarkets, at the moment they seem to have no interest in UK beef, their
only interest is to return a profit and at the moment that is at the cost of the
producer. The loyalty of retailers does not last beyond the last horse burger
been eaten.
As someone with personal experience you will agree that family farms do not
have the ability to continue to subsidise falling supermarket profits any
longer. Retailers need to give a fair share, 54% of the retail price to the
producer, market the product better and more clearly and most importantly
stop controlling and interfering in the businesses of their suppliers.
We have seen the large processors enforce deductions on cattle that are
unfair and restrictive of trade. The processing sector does not seem to realise
that destroying the supplier of their raw material suppliers will have an
adverse affect on their own survival. We of the NBA feel there is a need for a
European wide ombudsman to arbitrate fairly the relationship between the
primary producer and the processor, for all our food products.
The NBA like their Irish counterparts have also great concerns over future
Mercosur trade agreements and how this will affect the future sustainability of
the European beef industry.
l have attached a starting paper on the need for an ombudsman.
The NBA would welcome the chance to meet with you in your capacity as
European Commissioner for Agriculture and Rural
Development to discuss our concerns
Kind Regards,
National Beef Association