Inspection charge proposals threaten primary meat processors

Small abattoirs and primary meat processors fear that plans by the Food Standards Agency (FSA) to raise the level of charges imposed for inspections will force them out of business.

The abattoirs are worried additional cost burdens will tip them over the edge, given their already increased meat supply costs - up between 25% and 50% over the past year - and tighter margins. They are responding to an FSA consultation exercise on Meat Hygiene Service (MHS) charges.

Speaking at a consultation meeting in Warwickshire last Friday, small butcher and abattoir owner John Mettrick, who employs around 50 staff, said: “We could see the end of small abattoirs.”

He added: “We need to get the risk-based system that we want - in small abattoirs I would like the vet out … If specified risk material controls were relaxed, what’s wrong with local authorities taking charge of meat inspections?”

Three charging options have been proposed within the consultation document: increasing rates by 4%, 6% or 9% (the latter preferred by the FSA) - all including inflation. Increasing charges by 9% would raise the meat sector’s contribution to £28M from an estimated total cost of controls of £54M a year.

The government would ultimately like all costs passed on to the private sector. But FSA chief executive Tim Smith said £10M of public funds would be retained to ease the burden on small businesses.

British Meat Processing Association director Stuart Roberts added: “The imposition of a 9% increase will make it even harder for industries to survive.” He pointed out that nobody in the meat supply chain was making much money at the moment.

National Farmers’ Union deputy president Meurig Raymond argued: “This increase will have to be transferred down the supply chain, not up to primary processors.” But the big retailers - which were noticeably absent from the meeting - are unlikely to consent to passing on further cost increases to already cash-strapped consumers.

Under the FSA proposals, there are also plans to move to a “time-based” charging regime for inspections, which would allow food businesses more flexibility and the opportunity to reduce their overall costs. Smith described this as a “cornerstone” of the reform. However, he attempted to reassure companies by adding: “We are absolutely determined to get this [consultation] right.”

The MHS is undergoing a major restructuring designed to reduce costs, following the decision last year to abandon plans to privatise​ the service. But many meat processors argue that costs are still too high and the inspection regime too onerous and would like to see a more “proportionate”, risk-based approach to inspection. However, this would require changes to European legislation, which would be unlikely for a number of years given the resistance of a number of other EU Member States.