Meat Industry Brexit Impact Report

British Meat Processors Association
British Meat Processors Association

EFRA Committee stand up for producers and processors in ASDA/Sainsburys deal

Recently the Environment Food and Rural Affairs (EFRA) Committee has been questioning the Sainsbury’s and ASDA chiefs on their proposed merger. And, Chairman Neil Parish MP has demonstrated a fierce commitment to extracting answers to some hard questions that will be close to the British meat industry’s heart.

From the beginning of the first session, Mr Parish launched a robust interrogation into exactly how the supermarkets would achieve the promised 10% savings to customers, asserting to ASDA CEO Roger Burnley that savings will be achieved “at the expense of those that supply you” adding “when you buy cheaper, it’ll be the producers, the processors: everybody will pay the price”

You can view the full session here

Mr Burnley stressed that their plan was not to reduce the price they pay suppliers across both businesses but rather to buy Sainsbury’s products at ASDA prices to achieve an overall saving. Mr Burnley also pointed out that dealing with just one set of packaging and product specifications rather than two would offer cost savings to suppliers.

Mr Parish launched a robust interrogation into exactly how the supermarkets would achieve the promised 10% savings to customers

However the Committee dismissed this, saying that those savings would not balance the losses from having to trim prices. Mr Parish also challenged the ASDA chief to explain why they could not improve efficiencies in order to become more competitive (much like Aldi has done) rather than pressuring farmers and suppliers to become more competitive.

Nick Allen, CEO of the British Meat Processors Association, has been meeting with Neil Parish and DEFRA officials over the last several months to raise concerns and offer industry intelligence on the position of the British meat industry. Through these meetings, BMPA has been able to offer an insight into the challenges we’re facing as an industry both as a result of this merger activity but also surrounding the effects of Brexit.

We’ll watch with interest as the inquiry progresses and will continue our constructive dialogue with all parties from Government, the meat and livestock industry and the retail sector to push for outcomes that work for everybody.

About BMPA

The British Meat Processors Association (BMPA) is the leading trade association for the meat and meat products industry in the UK.

Latest

Cows in a field

Lucas Daglish introduces BMPA’s sustainability agenda

My name is Lucas Daglish and I have the privilege...

Meat plant workers

White Paper calls for more reviews on labour shortage when what’s needed is action

Reading the Government’s new Food Strategy White Paper, it’s clear...

Lucas Daglish - BMPA Sustainability Manager

New Sustainability Manager joins the BMPA team

The British Meat Processors Association (BMPA) has appointed Lucas Daglish...

Pigs on a farm

Government uncover key obstacles and issues in ongoing pig crisis

Defra minister Victoria Prentis recently convened a second meeting with...

New EFRA Chair Robert Goodwill explained to BBC Radio the unique recruitment challenges that meat companies face, particularly at a time of record low unemployment.
He said to Govt. "you just don't get it" and said their response is "wholly inadequate".
https://bit.ly/3AckdLD

Tomorrow Nick Allen will speak at the APPG Westminster Forum for parliamentarians and policy makers to voice industry concerns and ideas on how to strengthen the UK's food security and deliver improved sustainability and productivity.
Register: https://bit.ly/3mShmQd

Next Wed 29 June Nick Allen will speak at the APPG Westminster Forum for parliamentarians and policy makers to voice industry concerns and ideas on how to strengthen the UK's food security and deliver improved sustainability and productivity.
Register: https://bit.ly/3mShmQd