The cow jumped over the moon, and organic beef prices are going in the same direction.
Horse-gate has been good news for food businesses whose core values centre on known and proven provenance. Organic certification is by far the clearest way of demonstrating this, but the problem now is that everyone is trying to muscle in on the act. Supermarkets, who for years have paid little more than lip service to organics, treating it more like a loss-making inconvenience they could do without, are all reportedly desperate to re-list as much organic produce as possible – particularly beef. However there just isn’t enough to go around.
Last year’s poor harvest and growing conditions has meant that even low input, extensive organic farmers haven’t had enough fodder (grass, silage and hay) so they’ve turned them out to wait for the sun to shine and the organic spring grass to grow and give them a rich enough diet. Poor supply is compounded by the fact that until recently, premiums for organic beef have been minuscule (as low as 5%) and many farmers have decided that the challenge of producing their herds as fully organic has been too great, so have surrendered their organic certification as a result. If the supermarkets had supported organic farmers over the last five years, rather than giving them the cold shoulder, supply wouldn’t be so tight now. Now the premium has risen to a stonking 30% with no signs of levelling off. Rearing organic beef, even on grass, does cost more money, but not that much. Most farmers would be happy with 12-15%, which I would hope you would be happy to pay. It seems like a small price to pay for the peace of mind guaranteed provenance brings and the good work organic farmers do looking after our green and pleasant land.
At Riverford we have a good relationship with our suppliers. We pay a fixed price based on an average of the last quarter and this has worked well. Obviously they want to make an honest buck, but our farmers would much rather deal with us than buyers for the multiples. Most of them have been around for long enough to have experienced first hand the fickle whims of ‘those who must be obeyed.’ They didn’t start farming, and convert to organic, to see the fruits of their labour disappear into an anonymous black hole to be blended with 25% horse meat.
However, no farmer will go on selling beef for significantly less than market price for long, so we’ve shortened the last quarter by a month to hurry up the process of bringing our prices into line, so we can still pay a competitive price for our suppliers’ organic beef.
I’m afraid the inevitable outcome will be a small rise in our prices for all things beefy, but rest assured, we will keep increases to a minimum. We want to work with, and support our farmers as much as we want to deliver the best priced, best quality food via the shortest supply chain. That’s the Riverford way.