MercoPress. South Atlantic News Agency

Falklands growing meat industry exposed to international market volatility

The Sand Bay abattoir porcessed 57.771 sheep this export season

Falkland Islands meat industry is suffering the pains of growth and of international markets’ volatility, according to the latest number of sheep and cattle processed in the EU licensed local Sand Bay abattoir. However the quality and quantity of lambs produced continues to advance.

The abattoir turnover during the export season reached £2.6 million paid to suppliers, local businesses and government. However the Falklands’ Meat Company manager John Ferguson told farmers this week that the financial loss of £526,000 was higher than projected and was attributable to a number of factors.

The Euro crisis had seriously affected the market with sales prices down 25-30% and an unexpected 11.000 mutton had been processed with little or no notice. Mutton is the hardest to process and result in a loss per head, therefore increasing the required government subsidy.

Last year just £165,000 subsidy was required while the 2010/11 season had resulted in no subsidy at all being needed. Of the £2.6 million of this season £1,174,000 was paid to farmers, £765,000 to Stanley businesses and suppliers, £454,000 to staff and £299,000 to Government.

A total of 57.771 sheep were processed, 27.981 of which were new season or yearling lambs and Mr Ferguson paid tribute to the farmers for the overall quality of the animals. “You people are just getting better and better at finishing livestock,” he said.

North Arm farm manager Steven Dickson, one of the Falklands’ largest landholdings said the season had gone well for him with around 11.000 sheep, grossing more than £200,000 and totalling more than all of mainland West Falkland, sent to the abattoir.

The supply of beef however was not meeting demand with 30 animals per month needed to supply the shops alone. There was still a large amount of beef being imported said Mr Ferguson and he urged farmers to increase the mature cattle supply to meet emerging opportunities.

Demand would increase over the next few years and there was no danger of over supply as any excess could be exported, he said. While one farmer disputed the pricing structure for beef, others said it was fair and a target was needed to improve standard. Prime animals (18-36 months old) obtain a price of around £400 while one farmer had achieved the top price of £670 for a single animal.

Falklands practices an extensive rangeland farming system grazing half a million sheep and 5.000 cattle which added to climate conditions make it ideal for organic production as has been internationally recognized.

The Falklands government hás invested heavily in the abattoir to help improve the quality of livestock in the Islands and make agriculture long term sustainable. (PN/MP).-