Sheep Carcase (Classification and Price Reporting) (England) Regulations 2025

Considered in Grand Committee

16:51:00

Moved by

That the Grand Committee do consider the Sheep Carcase (Classification and Price Reporting) (England) Regulations 2025. Relevant document: 28th Report from the Secondary Legislation Scrutiny Committee

My Lords, these regulations were laid before this House on 2 June. I draw the Committee’s attention to a correction slip that was issued on 5 June in relation to the draft instrument. This corrected a typographical error on page 20, in Schedule 2, in the heading to the second table, “Table 1”, which should read, “Table 2”. This does not affect the substance or intent of the legislation. Copies of the correction slip have been made available to Members. I probably should declare an interest as sheep are kept on our smallholding. For years, industry has been calling for mandatory sheep carcass classification and price reporting. This instrument will bring the sheep industry in line with the beef and pork sectors, where mandatory carcass classification and price reporting has been in place for many years. This instrument mandates sheep carcass classification and the price reporting of sheep carcasses for larger slaughterhouses—those which slaughter at least 2,000 sheep per week. Smaller slaughterhouses that slaughter at least 1,000 sheep per week can voluntarily decide whether the regulations will apply to them. The legislation will also provide a process for the introduction of a system for the authorisation of automated sheep grading methods for slaughterhouses that wish to use automated carcass classification. The reason we are introducing this legislation is that slaughterhouses are currently able to set their own standards for preparing and presenting sheep carcasses for classification and weighing. As a result, carcass weights across the sector lack consistency due to variations in the way the carcass is prepared, trimmed and presented. This inconsistency leads to a lack of transparency across the industry, with non-comparable prices being quoted or recorded. Consequently, farmers often struggle to achieve the best payment for the quality of their sheep carcasses when they sell their stock. We want to see a more transparent, productive and efficient sheep market. By addressing this long-running supply chain fairness issue, we will both encourage farmers to improve productivity and ensure that they are paid a fair price based on the quality of their sheep. Producers can then also rear lambs that will better fit the market’s specifications and consumer demand. The legislation will also introduce a consistent and robust mechanism for the evaluation of the carcasses of sheep that are aged less than 12 months old at the time of slaughter; this encapsulates the prime lamb market. The instrument requires the use of the EUROP grid, as it is commonly known, to assess conformation—that is, the shape—and the degree of fat cover. The meat industry is familiar with this carcass classification scale through the mandatory schemes for pig and beef carcasses. Several abattoirs have already been using it when voluntarily classifying sheep carcasses. The new system will require operators to ensure that sheep carcasses are presented in a consistent way post-slaughter, at the point of weighing and classification. Regulated slaughterhouses will have to use one of two specified carcass presentations at this point. The regulated slaughterhouses will be required to report the weight of the carcass and its classification details, along with the price being paid for sheep sold on a deadweight basis—that is, where payment for the sheep is dependent on the classification and weight of its carcass. These carcass and pricing details must be reported both to the supplier of the sheep and to the Agriculture and Horticulture Development Board, which will process the information under contract to Defra, as it currently does for beef and pork. The instrument will apply a licensing regime to classifiers and to automated classification methods. The Rural Payments Agency, which will monitor and enforce the regulations, will assess and license carcass classifiers. This means that both manual classifiers and automated classifying technology in regulated slaughterhouses will need to be licensed for sheep classification. Provision is made for automated classification methods to be first subjected to an authorisation testing process, which must be passed before the automated equipment using that method can be put forward for licensing in regulated slaughterhouses. This will ensure that the method being used for automated classification can repeatedly and accurately classify carcasses. The Rural Payments Agency will be given the powers to inspect the regulated slaughterhouses and to take enforcement action where there are breaches to the regulatory requirements. The sheep industry, including farmers and meat processors, has been pressing us to create a mandatory carcass classification and price reporting system for sheep carcasses, which this instrument delivers. I beg to move.

My Lords, I thank the Minister for, and congratulate her on, introducing these regulations, of which I wholeheartedly approve. This must be the most consulted-on SI in the history of SIs; obviously, it is a brilliant piece of work, because it was started under the outgoing Conservative Government. I declare my interest in that I own one lot of shares in the Thirsk Farmers Auction Mart. For the purposes of Hansard, that is one lot—a very small group—of shares, not a lot of shares. I am also a patron of the Huby & Sutton Agricultural Society Show, which is not happening this year, sadly, because of the animal diseases that were prevalent earlier in the year. I have a couple of questions for the Minister. I welcome the fact that there is a de minimis rule and that small abattoirs will be excluded. Is there any crossover with the requirements of the BSE and foot and mouth provisions, or are these are entirely separate? This instrument is stand-alone in that regard, I think. My concern is that abattoirs are reducing in number. It is not my fault but the first time that this happened was, I remember, when there was a European directive on abattoirs. It might even have been under a Conservative Government. We gold-plated it, over-egged it and implemented it in a way that was never intended. That was down to the Home Department, I am afraid, which thought that birds flying around an abattoir was not a good idea when, in fact, all the carcasses were washed before they were cut up. Since that time, the number of abattoirs has greatly reduced. The NFU is, as I am sure the Minister is aware, very concerned about the implications of abattoir numbers reducing for livestock farmers generally. Has the department done an impact assessment on where we are with the current number of abattoirs? I welcome the fact that, for one thing, this SI applies only to small abattoirs; and that, as the Minister said, we are equating sheep with pork and beef. If we are not careful, though, all abattoirs will be large abattoirs because there will simply be no small abattoirs left. It is causing great concern among livestock producers, as well as—dare I say it very softly—among the animal welfare lobby, because animals have to travel further to slaughter. Obviously, given the extreme heat that we have seen recently, that is not something to be commended. With those few remarks, I endorse entirely what farmers and the NFU are saying: we need more smaller abattoirs. Are the Government likely to look at this? I know that there was a small abattoir fund up until 2023. Locally, a lot of the Thirsk livestock went to Kilburn abattoir, but that is now gone. This is not acceptable. It is not fair on farmers that they must have this additional worry and the cost of sending their livestock a longer distance. I therefore welcome the regulations and congratulate the Government. I know that there were a number of reasons for the delay, but I would welcome the Minister’s support for small abattoirs; it would be good to see where we are in that regard.

17:00:00

My Lords, I echo my noble friend’s words: this consultation has been going on for a very long time. My noble friend Lord Deben and I absolutely can vouch for these issues being regularly raised but not always sorted in the time between us coming in and out of office. I therefore congratulate the Minister on this achievement. I want to say one really serious thing about the decreasing number of abattoirs. In Norfolk, we now have one and a half abattoirs, if I can put it that way; I will not elucidate, but that is what we have. It means that if, for example, a farmer is selling to a supermarket—Morrisons, say—the abattoirs will be in Manchester, with the obvious consequences for the travel of cattle. In the recent hot weather, this has been intolerable for live animals. We are at risk with the number of abattoirs. I say to the Minister: this has never been a glamorous cause to pursue, but we are at risk of being accused of endangering the lives of animals.

My Lords, I remind the Committee of my interests. First, I let land for sheep; as I have an organic farm, we want the sheep to be there so that we have the proper, natural way of producing vegetables and crops of all sorts. Secondly, I am in the hospitality industry, where we seek to provide locally produced food. I thank the Minister for bringing this hugely important instrument forward. It reminds us that sheepmeat is just as important as beef and pigmeat, although we have not previously treated it in that way. I am also pleased that she made the distinction between the large abattoir and the small one. However, I am very worried about the provision of abattoirs. If you are trying to provide local food in a restaurant or a pub, it is not all that local if it has gone hundreds of miles to be killed then come back again. This is a very serious issue. I am sure that the Minister will not mind me raising the question of climate change. This hot weather will be regular. It has not come just because there is a Labour Government—I want to ensure that the Minister is not blamed for anything she should not be blamed for. We have to be serious about this: the fact is that we are in really serious trouble in terms of how we handle agriculture in a world that is steadily getting warmer. Although I congratulate the Government on the excellent policies being put forward by Mr Miliband, I still do not believe that we are doing enough across the board and that a great deal more has to be done as far as agriculture is concerned. I worry about these decisions. First, what happens when a small abattoir becomes a bigger abattoir? In other words, how does the department deal with the fact that, unfortunately, abattoirs have become bigger? When it comes over the level at which it should be reporting, what arrangements are made for that? That seems relatively important to me. Secondly, now that we are treating the sheepmeat industry properly, is this not the moment for us also to look at the possibility of providing, for example, mobile abattoirs, which will enable sheep to be killed near where they are? I have a long history of trying to distinguish between cruelty to animals and sentimentality about animals. I am deeply opposed to the kind of cruelty that arises if they travel long distances. I have never understood those people who are worried about the export of live animals but do not mind if they go from Suffolk to Manchester—it is a very odd attitude.

Or from Norfolk to Manchester.

I was talking about Suffolk because that is the better of the two counties, but there we are. The truth of the matter of simply this. Can we take this opportunity to give some real support for small abattoirs near to where the animals are? This means—in Suffolk and in Norfolk—having accommodation that just does not exist at the moment. I hope that now is the opportunity for the department to take this up.

My Lords, I start by thanking the Minister for introducing this set of much-needed regulations, which are aimed at bringing the sheep sector in line with the beef and pork industries through the introduction of mandatory carcass classification and price-reporting schemes. These schemes, long established in the aforementioned beef and pork sectors, have provided transparency, accountability and consistency across the market.

17:07:00

Sitting suspended for a Division in the House.

17:29:00

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.

My Lords, I thank noble Lords for their valuable contributions to today’s debate and their strong support for these regulations; it is much appreciated. These regulations are important, so it is very good that we can bring them in smoothly. The key issue raised in the debate is that of small abattoirs: every noble Lord who spoke mentioned the problem of the closure of small abattoirs. One of the reasons we wanted to exempt small abattoirs from the scheme, in order not to put extra administrative regulatory burden on them, is because we know what pressures they face. I am acutely aware that many small abattoirs have closed over, I would guess, the last decade. It is much harder for abattoirs to stay open, and I am very aware of the extra stress that that puts on farmers. Farmers like to know where their animals are going, and with abattoirs becoming more centralised and larger, they do not necessarily know the abattoir and the people running it in the way they used to. As noble Lords have said, animals have longer travel distances, often in hot vehicles, so it is not great for animal welfare. When I was president of the Rare Breeds Survival Trust, we had a campaign around small abattoirs, so this is something I know quite a lot about; it is very close to my heart. In fact, last year, I chaired the Oxford Real Farming Conference session on small abattoirs and talked to people from the industry, as well as to the people running mobile abattoirs, who were represented at that meeting. The noble Earl, Lord Effingham, talked about the small abattoir fund, which Defra was running at that time. That fund was for a fixed period, which has now come to an end. I have been talking recently to the Farming Minister, Daniel Zeichner, about small abattoirs—I know that he has a particular interest in them—and what we can do next to support the industry, because we in Defra are extremely aware that this is particularly challenging in more rural areas. I know that the noble Baroness, Lady McIntosh of Pickering, is from Yorkshire, others are from East Anglia and I am in Cumbria, and we all have the same problem. Our nearest abattoir is probably a two-hour drive in a farm vehicle. One of the issues we are coming up against is the skill set. It is an extremely skilled job, and there is a problem with staffing abattoirs. We need to look at that, because it is all very well having funds, but if we do not have people with the skills to do the job, and people who want to train to do that job in future, we are never going to solve the problem. We are looking at how we can encourage people to look at this as a career choice. It is not always an easy career choice to sell, but it is an important and valuable job and it can be very well paid.

I am grateful to the Minister for raising this matter, because I understand that part of the problem was Brexit—in particular, attracting Spanish vets and people who would have done the job. Are the Government planning to find a means of recruiting people to that role?

Obviously, the EU reset is looking at all sorts of different things and it is not something I can particularly comment on. What I can say, though, on the issue of vets being present, is that we have also been in discussion with the Food Standards Agency on the regulation of smaller abattoirs, the presence of vets, the level of inspection and so on. We are also working with the FSA on that. The simple thing for me to say is that I do not have an answer to how we resolve the issue of the closure of small abattoirs. It is not just about them closing but about how you get them to reopen, because that is really important; the small abattoir fund was only to support existing abattoirs, not to open new ones. It is quite a complex issue, but I reassure noble Lords that it is very well recognised in Defra. We have officials who really know and understand the problems around this, and Ministers who are committed to try to do their best. If noble Lords have helpful information they would like to share with me, I will be very pleased to receive it. On other issues, the noble Baroness, Lady McIntosh of Pickering, asked specifically about whether this instrument is separate from issues around FMD and so on. It is completely separate, just to reassure her on that point. The noble Lord, Lord Deben, asked what happens if a small abattoir gets bigger. The answer is that, if it is then caught by the regulations, the abattoir itself has a duty to report it to the department so that it comes under the regulations properly. Finally, I thank the noble Earl, Lord Effingham, for recognising the broad industry support for these regulations, because it is really important to recognise how important they are for industry. He also mentioned the devolved Governments. We have worked very closely with the devolved Governments, and they are working to ensure that retrospective legislation comes into force at the same time so that we have consistency across the country, because farmers and food processors need to get the value that their products deserve. This instrument is an essential tool in our efforts to increase the fairness of the supply chain. It will establish a much-needed scheme that will result in a more open, fair and transparent sheep market.

Motion agreed.