Revelations that the Food Standard Agency plans to increase its meat inspection charges to reduce their pension deficit of £103 million have outraged the Farmers’ Union of Wales and been labelled as a “disgrace” by president Gareth Vaughan at today’s meeting of the union’s grand council.
The union learned at a recent stakeholders meeting in York that nearly 15 per cent (£4.7 million) of the FSA’s proposed meat inspection charges for 2011/2012 are required to reduce its pension.
“The overall proposals are clearly a disgrace, but to pass on pension deficits to the industry and call them ‘costs’ beggars belief, and are something we will be writing to the European Commission about, as we believe this breaks EU rules,” said Mr Vaughan.
The majority of small and medium-sized slaughterhouses in Wales could close if their operators are forced to pay for bureaucratic and costly meat hygiene inspections, and face the additional £32 million burden.
“It is unlikely that cost increases will be passed on to customers rather than primary producers. Therefore, the proposals will have significant consequences in terms of farm incomes,” said Mr Vaughan.
“But perhaps the biggest concern is that the proposals come as manna from heaven to the supermarkets, and will increase their already massive control over the supply chain. It is estimated that over 50% of cattle and 70% of sheep are slaughtered in the independent, small and medium sized plants which are most threatened by these plans.
“To put it bluntly, the FSA is planning to hand over what is left of the independent meat industry to the supermarkets, and this is something that FUW will fight tooth and nail to prevent,” added Mr Vaughan.