CONSUMERS appear to have regained confidence in beef more quickly than farmers, Don Currie, chairman of the Meat & Livestock Commission, said yesterday.
Speaking in Perth at the close of a two-day tour of the industry in Scotland, Mr Currie said household consumption figures exceeded those of two years ago. That suggested a return of consumer confidence.
One unresolved issue was the crisis of confidence experienced by farmers. Many were concerned about the long-term security of their beef
enterprises.
''Farmers are uncertain about whether they should continue in cattle finishing,'' Mr Currie said.
''The proposals for changes in support outlined in the Agenda 2000 document are also a matter for concern.'' The abattoir sector, in turn, was worried about long-term supplies of beef to meet customer requirements.
The two added up to an issue of confidence for the whole beef industry.
Mr Currie questioned whether the fall in farm gate prices, compared with two years ago, could be blamed entirely on BSE.
''In my view, we would have reached the price levels we are at today in any case because of the revaluation of sterling,'' he said.
''The strength of sterling is the main influence on prices for both cereals and beef and there is no immediate sign of sterling losing its value.
''As a farming industry we are having to adjust to this new scenario.''
Mr Currie suggested that the present flow of calves into the calf processing scheme would be reduced if it became economic to consider finishing them for beef.
Prior to the BSE crisis Britain exported about 500,000 calves a year but the processing scheme has been attracting about 700,000, prompting fears of a future shortfall in supplies of animals for the beef trade.
With the cuts in prices paid under the scheme, stemming from the strength of sterling, and with barley at #80 a tonne it could become economic for producers to buy in calves for finishing under a barley beef system, he said.
Mr Currie's advice to finishers purchasing stock at the autumn sales was to act with caution.
''I cannot see the prospects for selling cattle in the early part of next year being any better than they were this year,' he said.
''Finishers should not budget on getting any higher prices and buy their stores accordingly.''
The lifting of the European export ban remained a top priority and there would be serious pressure on the Government and the Council of Ministers to achieve a solution, Mr Currie forecast.
Agriculture Minister Dr Jack Cunningham had been sympathetic to the argument that cattle born after July last year should be considered eligible for export.
At a European level, he said, it was important not just to look for ways of cutting back beef supply in order to balance the market.
There had to be stimulation of demand and the MLC was encouraging the European Commission to increase funding for promotional activities.
It was hoped that European support for marketing in Britain would be almost doubled to #2m this year.
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