Contribution
My Lords, these schemes, long established in the aforementioned beef and pork sectors, have provided transparency, accountability and consistency across the market. It is only right that the sheep sector now be afforded the same standards.
The proposed regulations, based on the existing Carcase Classification and Price Reporting (England) Regulations 2018, would require regulated slaughterhouses to submit weekly reports detailing price data by carcass classification for individual sheep under 12 months of age. Not only is this move logical, it is also timely. It will enable producers to better understand whether the prices they receive reflect the true value of their animals. It will also support better forward planning, evidence-based policy-making and market monitoring.
As it stands, the absence of a mandatory classification and pricing system has created a fragmented and inconsistent marketplace. While some abattoirs have voluntarily adopted classification systems and reported prices to the Agriculture and Horticulture Development Board, others have used their own internal standards for trimming and weighing carcasses. This misalignment of practices has led to inconsistencies in carcass weights and a lack of price comparability, leaving many sheep farmers at a disadvantage.
Non-standardisation presents real-world consequences. It means that farmers often struggle to negotiate fair payment for the quality of their livestock and lack the data needed to make informed decisions that may improve both their businesses and productivity.
The proposals put forward today have been supported by a consultation held by Defra and the Welsh Government last year, which found broad support from stakeholders. Notably, the National Farmers’ Union, which has long campaigned for the reform, welcomed the proposals. David Barton, chair of the NFU livestock board, greatly looked forward to the proposals, which will benefit farmers, processors and customers all across the wider supply chain. The Meat & Livestock Classification has also voiced its support, recognising the potential of these changes to promote transparency and high standards in the British sheep industry.
Those processing 2,000 sheep or more weekly will be required to comply, and smaller abattoirs slaughtering between 1,000 and 1,999 sheep weekly on a rolling annual average will have the choice to opt in. This threshold strikes the right balance, capturing approximately 85% of all sheep slaughtered, while avoiding unnecessary regulatory pressure on smaller operations.
The instrument also includes a licensing regime for classifiers and automated classification methods, with an authorisation process in place to ensure the reliability of automated systems before they are approved for use.
I shall briefly touch on the subject of mobile abattoirs and smaller abattoirs, as referenced by my noble friends Lady McIntosh, Lady Shephard and Lord Deben. I know from personal experience that abattoirs are on the decline; I do not know the exact statistics, but the decline has been significant. Will the Minister come back to us on what has already been asked, but also on the small abattoir fund, a fund that we introduced, of around £4 million? What are the Government’s plans for that fund? Will it remain? Will the funding be increased? How are the Government promoting it to smaller abattoirs? What regulations can we look at changing in order to make mobile abattoirs easier to be set up and used throughout the country?
In conclusion, we welcome today’s statutory instrument, which seeks to ensure that sheepmeat producers get a fair price for the product. It is a sensible, proportionate and long-overdue step towards a more transparent and equitable marketplace. It gives sheepmeat producers the clarity and confidence they need to ensure that they are receiving a fair price, and it should result in the system operating to a higher standard.