10 January 2008, 19:41 PM
  • British organic beef producers are being paid less than market value by supermarkets and processors, a new report by the Soil Association reveals.

In 2006, the average farmgate price of organic beef was £2.90 per kilo compared with a cost of production of £3.30 per kilo. This represents a loss of 40p per kilo of meat sold. The situation is made even worse when considering that 70% of the organic beef consumed in the UK is bought in supermarkets.

The report, called Where’s the Beef, shows producers are not paid enough to cover the production costs and that major retailers prefer to import meat even though there is enough supply in the UK. This, the Soil Association says, not only endangers the development of organic production in Britain, it also leads to unnecessary carbon emissions.

The study also found evidence of rising imports at a cost to the environment and against the recommendations of the Government’s Organic Action Plan, which aimed to ensure that more of the organic food consumed domestically comes from UK farmers. From 2005 to 2006 the proportion of organic red meat from UK producers sold through UK supermarkets fell from 85% to 79%.

Phil Stocker, head of food and farming at the Soil Association, says, “There is a clear and urgent need to relocalise food production and distribution, given the challenges we face from climate change and peak oil. Countries like the UK should be building their food supplies around their indigenous population, with limited trade to fill the gaps.

“Organic farmers should play their part by joining organic marketing groups, if they have not already done so. This approach is essential to give greater collective activity and organisation in the market place - smaller scale spot trading into national markets is not sustainable or desirable for anyone in the longer term.”