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PA059/A/07 Suckler Beef Supply Chain Project

22 February 2007
A new technology project based at the College of Agriculture, Food and Rural Enterprise (CAFRE) Hill Farm, Glenwherry has been announced to industry representatives.
This project will investigate the future viability of suckler beef in the hills and uplands.  It follows on from a previous project based at the CAFRE Enniskillen Campus.  It will involve the same supply chain partners, namely Aberdeen Angus Quality Beef Limited (AAQB Ltd), Foyle Food Group and Tesco, UK.
Introducing the event, Roy McClenaghan, Deputy Secretary at the Department of Agriculture and Rural Development (DARD), praised the industry for how it had dealt with the many challenges it had faced: “One of the future challenges is to encourage forward thinking, energetic young people into the industry. Marketing initiatives such as Aberdeen Angus beef produced to an agreed protocol, coupled with supply chain programme and benchmarking, provides an opportunity for the future. The principles demonstrated in the management protocol formulated as part of this project will apply or can be easily adapted to suit other supply chains.”
He congratulated everyone involved in the project which started off marketing a niche product that has grown over the last nine years and developed into more of a mainstream production outlet as Tesco has generated consumer demand for a consistent and quality product.
Another major requirement is to benchmark the beef business to balance production costs and returns with labour inputs.  This is vital in a scenario where so many beef and sheep farmers now have off-farm employment.  It is also important to assess the business against the background of future Single Farm Payments and modulation as well as environmental issues and payments to ensure that overall returns are optimised.
Eamonn Kelly, Business Development Manager, AAQB Ltd, outlined the history of the co-operative which was founded in 1998 by a group of pedigree breeders.  The breakthrough came with the start of the partnership with the Foyle Food Group who in turn developed the links with Tesco.  The result was the appearance of the first meat on the Tesco fresh food counters in 2000.
The producers who have supplied increasing amounts of beef to specification have been following the protocols established through the CAFRE Enniskillen project.  The bonus scheme developed in conjunction with the Foyle Food Group has been invaluable in growing the business and strengthening this supply chain.  Eamonn Kelly stated: “To date, producers have collected £2 million in bonuses through the scheme, which has helped them immeasurably to develop and maintain their businesses.”
Terry Acheson, Director, Foyle Food Group commented: “The continued growth in sales of Aberdeen Angus beef is a major opportunity for all in the industry. With the current export sales development potential, along with sales to meat and ready-meal manufacturing companies, there is real scope to further develop this supply chain.”
Commenting at today's event, Cliff Kells, Commercial Manager for Tesco in Northern Ireland, said:  "The partnership built up by Tesco, Foyle Meats, Aberdeen Angus Quality Beef Ltd, and DARD over many years is a great example of how we can all work together across the supply chain.  The result is an excellent range of top quality, farm assured local Angus beef, available from all of the fresh meat serve-over counters in our Northern Ireland stores."
Looking to the future Cliff added: "We now want to bring this wonderful local beef to the attention of many more of our customers, and it will feature over the coming months as part of our ongoing 'Taste Northern Ireland' campaign, designed simply to highlight great tasting local food at Tesco."
NOTES TO EDITORS:
All media queries to DARD Press Office on 028 9052 4619.