The lifting of the beef export ban must be followed by positive signals from buyers to increase the beef price if the all important moral-boosting element of the ban is to be sustained in the industry, says Farm Business Consultants Strutt & Parker.

“The lifting of the ban is a huge confidence booster to an industry which is striving to be optimistic in the face of prices being at least 10% below the cost of production for many producers,” says Richard Taylor, Farm Business Consultant of Strutt & Parker. “But it must be quickly followed by increases in prices or the positive boost will be lost,” he says.

Mr Taylor describes the mood of producers as being fragile, with many looking critically at their beef enterprises. “If nothing positive happens to prices in the first few weeks after the ban is lifted then the renewed optimism will be lost and many farmers will simply pack-up,” he says. “The lifting of the ban will act as the line in the sand over which farmers will decide to stay on or leave.”

He has full confidence in the quality of the beef that UK farmers produce, and believes that there is no reason why continental demand should not be strong enough to increase prices. “We have the lowest cases of BSE since records began, and BSE controls have been in place for ten years. Official figures point to a growing deficit of beef in Europe, indicating that there is demand for our beef,” he says.

“UK farmers have adopted all of the regulations that have been imposed on them, and produce beef under the strictest traceability controls and welfare standards. They will have no problem in producing beef fit for export, and so should not have to endure prices that are significantly different to continental producers. At the moment there is a 30% differential in prices between UK and continental beef producers. That has to equalise, and the speed at which it does so will have a direct bearing on the future make-up and size of the industry.”