NFU dispels Fallen Stock Scheme Myth
01/03/05

The NFU in Cumbria is trying to dispel myths within the farming community that the National Fallen Stock Company (NFSCo) dictates the prices that collectors are now charging.

In Cumbria, members have raised concerns regarding the price being charged for collection. Three collectors are offering a service in Cumbria offering collection on identical pricing scales for the different species and categories.

An NFU meeting took place with local farmers where NFSCo chairman, Michael Seals, was in attendance. As a result he has this week written to the collectors operating under the scheme in order to clarify the situation in regards to the cost of collections.

Mr Seals, said: "One of the concerns that was raised with me at a recent meeting with Cumbrian farmers was the pricing for collection of livestock under the scheme by the region's companies.

"Those present expressed concern at the similarity of the prices being charged and wanted reassurance from me that NFSCo was not dictating prices. I can categorically say that we are not."

Mr Seals promised to get those present an answer as to why the prices were similar and said he wanted them to have a choice in regards to price.

NFU Cumbrian County Chairman, Alistair Mackintosh and NFU Livestock Commodity Board Chairman, Thomas Binns are pleased that Mr Seals is attempting to restore clarity to the situation and have said they will help in any which way they can. Although Mr Mackintosh told Mr Seals that he felt the NFSCo should be accountable to its members and that it should make sure it is more proactive with managing the price structure so that its members get value for money.

So how has this problem occurred? Well, initially government predicted that the alternative disposal of animals in the UK would cost somewhere in the region of £25 million per year.

The National Fallen Stock Company was established with the task of designing a scheme, to incorporate £30 million in government monies, via which farmers would have access to these alternative disposal methods.

In their attempts to do so, the actual cost of disposal has been placed at a figure of £47 million. So as a result of this legislation everyone in the livestock sector has a cost to bear that they did not originally have. It also became apparent during their investigations that the historic migration of livestock from the east to the west coast has resulted in variation in the infrastructure of collectors across the UK in terms of availability.

Collectors up and down the country were invited to tender for participation in the scheme. The tendering process requested a list of the postcode areas a collector wished to operate in and a list of their prices they would charge for the various categories of animal.

The NFSCo chairman, Michael Seals has asked that members reiterate this point to the collectors when they suggest that the company set the prices.

The intention was that through the tendering process the level of competition from collectors should have resulted in competitive pricing dependent upon the level and number of tenders received.

The tenders for participation in the scheme are submitted on a six monthly basis, at present, and as the scheme began in November, the tendering process for contracts to the scheme from May to November 2005 will take place in April.