Processor code for cattle sales introduced

The voluntary code is aimed at increasing transparency and trust in the supply chain, and was one of the items agreed at last year’s Beef Summit.

It does not cover prices, but commits processors who sign up to providing clarity about their terms and conditions and giving 12 weeks’ notice of changes to these terms and conditions.

Cattle processors across the UK - whether or not they are member companies of the BMPA - are now being encouraged to sign up to the code.

Other parties in the beef supply chain, including retailers, food service companies and renderers, are urged to operate according to the principles and in the spirit of the code in order to help to minimise volatility and uncertainty in the supply chain.

NFU Livestock Board Chairman, Charles Sercombe said: “This is a welcome step in the right direction as we continue to seek more openness and transparency in the supply chain. What is critical to our members is the stability that this code should bring, which will allow producers to plan ahead and market their cattle without sudden or unexpected changes to conditions of sale.

“We hope this will help beef producers to manage the volatility we have seen in recent years and provide a clearer understanding of the terms and conditions that are on offer”.

BMPA President, Peter Mitchell, said: “Responsible and forward-thinking processors understand the need to be open about their terms and conditions of trading with their producer suppliers and to give reasonable notice of changes to them.

“Signing up to the code is a visible sign of this recognition, and a commitment to constructive relations with beef producers in order to improve the efficiency of the beef supply chain and so together we can better meet the needs of the marketplace.”