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

Earl of Effingham Excerpts

Monday 7th July 2025 Grand Committee

[Lord Deben (Con)]

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.

[The Earl of Effingham (Con)]

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.

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[The Earl of Effingham (Con)]

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.

[Baroness Hayman of Ullock (Lab)]

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.