NFU members areexpressing concern that abattoir waste charges have risen by more than 60 percent in recent weeks and the NFU is now calling onthose processors that have increased their charges to fully explain the reasonsbehind this.
NFU livestock boardchairman Charles Sercombe said: The picture is not consistent with themajority of processors clearly managing the volatility within processedcommodity markets and to their credit they have not passed these costs back tofarmers. Waste disposal costs are quite clearly an operating cost to theprocessors business and are out of the farmers control. We are convinced thatthese costs should be built into the base price quoted to the farmer, in thesame way as changes to the hide or fifth quarter values are.
We intend to publish theNFUs deadweight market transparency report along with a number ofrecommendations early in the New Year. We have identified that charges varywidely between processors and we need to understand the reasons for this widevariation. We will asking processors to sign up to a code of practice thatrequires them to provide clear information about their companys terms andconditions of trading, and to make this available to their suppliers.
Its also veryinteresting to note that some processors are doubtless ahead of others in theirwaste management, and its encouraging to see 2 Sisters taking the recentdecision to install anaerobic digesters at ten of their plants, which I believewill generate 10,000 MWh of electricity.