Contribution
My Lords, these regulations were laid before this House on 2 June. I draw the Committee’s attention to a correction slip that was issued on 5 June in relation to the draft instrument. This corrected a typographical error on page 20, in Schedule 2, in the heading to the second table, “Table 1”, which should read, “Table 2”. This does not affect the substance or intent of the legislation. Copies of the correction slip have been made available to Members.
I probably should declare an interest as sheep are kept on our smallholding.
For years, industry has been calling for mandatory sheep carcass classification and price reporting. This instrument will bring the sheep industry in line with the beef and pork sectors, where mandatory carcass classification and price reporting has been in place for many years.
This instrument mandates sheep carcass classification and the price reporting of sheep carcasses for larger slaughterhouses—those which slaughter at least 2,000 sheep per week. Smaller slaughterhouses that slaughter at least 1,000 sheep per week can voluntarily decide whether the regulations will apply to them. The legislation will also provide a process for the introduction of a system for the authorisation of automated sheep grading methods for slaughterhouses that wish to use automated carcass classification.
The reason we are introducing this legislation is that slaughterhouses are currently able to set their own standards for preparing and presenting sheep carcasses for classification and weighing. As a result, carcass weights across the sector lack consistency due to variations in the way the carcass is prepared, trimmed and presented. This inconsistency leads to a lack of transparency across the industry, with non-comparable prices being quoted or recorded. Consequently, farmers often struggle to achieve the best payment for the quality of their sheep carcasses when they sell their stock.
We want to see a more transparent, productive and efficient sheep market. By addressing this long-running supply chain fairness issue, we will both encourage farmers to improve productivity and ensure that they are paid a fair price based on the quality of their sheep. Producers can then also rear lambs that will better fit the market’s specifications and consumer demand.
The legislation will also introduce a consistent and robust mechanism for the evaluation of the carcasses of sheep that are aged less than 12 months old at the time of slaughter; this encapsulates the prime lamb market. The instrument requires the use of the EUROP grid, as it is commonly known, to assess conformation—that is, the shape—and the degree of fat cover. The meat industry is familiar with this carcass classification scale through the mandatory schemes for pig and beef carcasses. Several abattoirs have already been using it when voluntarily classifying sheep carcasses.
The new system will require operators to ensure that sheep carcasses are presented in a consistent way post-slaughter, at the point of weighing and classification. Regulated slaughterhouses will have to use one of two specified carcass presentations at this point.
The regulated slaughterhouses will be required to report the weight of the carcass and its classification details, along with the price being paid for sheep sold on a deadweight basis—that is, where payment for the sheep is dependent on the classification and weight of its carcass. These carcass and pricing details must be reported both to the supplier of the sheep and to the Agriculture and Horticulture Development Board, which will process the information under contract to Defra, as it currently does for beef and pork.
The instrument will apply a licensing regime to classifiers and to automated classification methods. The Rural Payments Agency, which will monitor and enforce the regulations, will assess and license carcass classifiers. This means that both manual classifiers and automated classifying technology in regulated slaughterhouses will need to be licensed for sheep classification. Provision is made for automated classification methods to be first subjected to an authorisation testing process, which must be passed before the automated equipment using that method can be put forward for licensing in regulated slaughterhouses. This will ensure that the method being used for automated classification can repeatedly and accurately classify carcasses. The Rural Payments Agency will be given the powers to inspect the regulated slaughterhouses and to take enforcement action where there are breaches to the regulatory requirements. The sheep industry, including farmers and meat processors, has been pressing us to create a mandatory carcass classification and price reporting system for sheep carcasses, which this instrument delivers.
I beg to move.