Beef exports face ten-week delay

THE resumption of beef exports from the UK - a trade potentially worth £150 million to the Scottish economy - is unlikely before late March 2006, and that date may be optimistic.

Following extensive checks over the summer by EU health and veterinary authorities, it was thought exports would resume early next year. Since March 1996, when it was suggested that there was a link between BSE and variant CJD, only very small quantities of beef have been exported, and then under conditions that made the trade highly marginal in terms of profitability.

In addition, for almost ten years no beef from cattle aged over 30 months has been allowed to enter the food chain. During that period almost six million cattle have been disposed of through the Over Thirty Months Scheme (OTMS). Farmers have been compensated at modest levels for these animals, at a cost to the Treasury estimated at 5 billion.

From 20 January 2006, beef from these older cattle, mostly cows, will be available on the market for human consumption, provided those animals were born before 31 July 1996. But National Farmers Union Scotland (NFUS) says the sluggishness of EU administration means the industry now faces a gap of at least ten weeks from the end of the OTMS to the resumption of exports. There are fears of a price collapse in this period.

David Mitchell, vice-president of NFUS, said: "No-one knows what the market price will be after the OTMS closes, so farmers need to carefully consider the options how they handle these cattle.

"Ultimately they need to make a judgment as to whether they book in OTM cattle to go through the scheme before it closes or hang on to them in the hope of better returns."

NFUS is keen that the European Commission takes action now, in case the market does implode. Mitchell said: "We maintain that political steps need to be prepared, but we know that there are no easy answers.

"Where government can help is by ensuring adequate capacity for the OTMS in the run-up top its cut-off date to handle any increase in the number of cattle booked in. We will be asking Defra and the Scottish Executive to treat this as a priority."