The FSA (Food Standards Agency) recently announced an uplift in official meat charges for meat premises for the 2026/27 financial year, placing further pressure upon small and medium-sized abattoirs struggling with rising costs and regulatory burdens.
The hourly rate for OVs (official veterinarians) is set to rise by 20.8% from £65.90 per hour to £79.60.
The hourly rate for MHIs (meat hygiene inspectors) will increase by 12.3% from £43.20 to £48.50.
These costs are charged to approved meat premises slaughterhouses, cutting plants, game handling establishments, on-farm slaughtering facilities, and cutting premises.
Discounts on official control costs
The FSA charges by the hour for its staff resources, with some variances for those businesses which use shift working patterns. The FSA provides discounts on these official control costs, but these are changing for 2026/27.
From 30 March 2026, the largest processors will no longer receive a discount for official control costs and there will only be two bands of discounts.
Previously, discounts were applied on a sliding scale ranging from a 90% discount for the smallest slaughterhouses to a 2% discount for the largest operators.
A 90% discount to official controls will be applied for red meat slaughterhouses and game handling establishments operating up to 240 hours annually, and poultry slaughterhouses operating up to 675 hours annually.
A 75% discount will be applied for red meat slaughterhouses and game handling establishments operating between 240 and 792 hours annually, and poultry slaughterhouses operating between 675 and 1,947 hours annually.
Any slaughterhouse/game handling establishment operating for more than 792 hours annually or any poultry slaughterhouse operating for more than 1,947 hours annually will not receive a discount to official control costs.
Inflation causes
The law and HM Treasury guidance requires the FSA to charge the appropriate customer for the functions provided.
The FSA cite direct staff costs as the main reason for the inflation – specifically, the increase in minimum salary requirements for skilled worker visas and the increase to employers National Insurance contributions effective from April 2025.
Rising costs have been mitigated marginally by a reduction in contractor hours.
Significant pressures
With a 20% decrease in approved sheep and beef abattoirs in England and Wales in the five years leading to 2023, the trend of consolidation in the processing sector demonstrates the significant pressures already being seen in the abattoir sector.
Alongside official control costs, difficulties in securing investment, access to skilled labour, the falling value of fifth quarter and animal by-products, and ongoing challenges associated with regulatory burdens are just some of the factors resulting in low margins and difficult relationships with officials that have forced many small and medium-sized abattoirs to close.
Consolidation in the processing sector has significant implications for producers where these businesses provide crucial services for thousands of farmers.
Capacity issues are particularly acute in the south-east of England.
Small and medium enterprises provide essential market competition, offering a wider range of marketing opportunities for producers, including additional services such as private kills that support independent farm shops, retailers and hospitality.
The loss of local abattoirs also increases journey times, which adds cost and risks exacerbating animal travel time.
NFU concerns
The NFU is extremely concerned about the impacts the price increases will have on abattoirs, and how this may affect the wider livestock sector.
The NFU’s concerns were raised with the FSA when these increases were announced last year.
The lawfulness of these charges is subject to a legal challenge, brought by AIMS (the Association of Independent Meat Suppliers), which is due to be heard next month.
The NFU is an interested party in this case, ensuring that our concerns about the legality of the revised charges are heard.
