Small Abattoirs

Robbie Moore Excerpts

Thursday 8th May 2025 Westminster Hall

[Robbie Moore (Keighley and Ilkley) (Con)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I thank the hon. Member for Glastonbury and Somerton (Sarah Dyke) for securing this incredibly important debate. As has been indicated in all the contributions, we realise that small abattoirs are a vital part of our food supply chain and, therefore, of our national food security.

The benefits of encouraging a diverse range of abattoirs of all sizes are incredibly important not only for food supply but for supporting the rural economy. Farming businesses rely on them. If they are not there, opportunities for our farmers, our rural economy and our consumers are significantly reduced.

Small abattoirs bring greater market competition, helping our farmers to secure the best price for their produce. They often provide specialist services, such as slaughter for horned cattle or outdoor pigs, which is not always offered by larger establishments, as we have heard. We do not always hear in this House about how the opportunities provided by small abattoirs are incredibly important for many in our farming community. Private kill services, which farmers looking to diversify increasingly rely on, are also a speciality of our smaller abattoirs.

With regard to animal welfare, smaller abattoirs are well suited to ensuring that each animal receives humane treatment. Reduced travel distances mean that animals arrive less stressed than they would after a longer journey. Those shorter travel distances also cut down on haulage costs and emissions in our meat sector, as my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) indicated in his intervention.

In rural communities across the country, small abattoirs ensure that more business is done locally by providing jobs and a local supply of produce for businesses further down the supply chain. However, we have unfortunately seen a decline in small and medium-sized abattoirs across the country, with areas such as northern Scotland, northern England and the south-east in particular experiencing a short supply of small abattoirs. A survey of farm businesses recently showed that 51% of respondents had to find new abattoirs after the closure of their original provider. Between 2018 and 2022, smaller red meat abattoirs declined by around 25% and smaller poultry abattoirs declined by around 40%.

A survey undertaken by National Craft Butchers indicated that 59% of abattoirs processing less than 1,000 livestock units a year would close within two to five years without any Government intervention. In 2023, that analysis was unfortunately on track. The previous Government decided to act on that by introducing the smaller abattoir fund. However, the costs to our smaller abattoirs have significantly increased. As has been mentioned, energy costs are often much higher for smaller abattoirs. The employer national insurance increase, the minimum wage increase and the challenges around skills are increasing those challenges.

The previous Government understood the problem and delivered the £4 million smaller abattoir fund, with 42% of eligible businesses applying. It delivered critical investment into the sector, making it more productive and improving produce quality and animal welfare standards. I urge the Government to continue rolling out that fund, which provided funds from £4,000 to up to £60,000. That was increased from an intervention rate of 40% to 50%, with the upper limit increasing to £75,000 to cover off some of the challenges.

Specific issues were picked up by colleagues in their contributions. My hon. Friend the Member for Bexhill and Battle (Dr Mullan) mentioned the challenges in the south-east. I know that he and my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) had specific challenges associated with their abattoir in Henfield. My hon. Friend the Member for Arundel and South Downs met the chief executive of Horsham district council and managed to secure a £300,000 grant to help keep the abattoir open. That illustrates the nature of the challenge. The changes to employer’s national insurance have been exacerbated by the additional costs associated with energy and running a small abattoir, so sometimes the Government need to intervene and assist.

We also need to get to a position of fairness throughout the whole of the supply chain, as was rightly suggested by my hon. Friend the Member for Weald of Kent (Katie Lam). Farmers want fairness, not favours. We must get to a position where there is fairness in the supply chain. Government intervention sometimes helps the small abattoirs that provide a much better level of service to our rural economy, rather than farmers having to rely on larger abattoirs. Sometimes intervention helps, so I reiterate the calls on the Government to roll out the smaller abattoir fund again.

We also delivered the Animal Welfare (Livestock Exports) Act 2024, which banned the export of live animals for slaughter. Not only did that end an often inhumane practice, but it provided further reassurance for the sector. The first thing that the Government could do is unequivocally recognise the importance of smaller abattoirs, primarily focusing on the supply chain. The Government should ensure that the supply chain—and abattoirs—are encompassed within their food strategy. Part of the review should include looking closely not only at a second round of the smaller abattoir fund, but at whether there are circumstances in which smaller abattoirs do not need the additional costs of energy.

What plans does the Minister have for regulatory reform in the abattoir sector? At a time when the Government are advocating for greater alignment with Europe, does he recognise that many of the EU directives still in force in this country did great damage to our smaller abattoirs? There is also growing concern about the financial burden placed on our smaller abattoirs by the Food Standards Agency, to which Members have referred. What steps is the Minister taking to ensure that smaller abattoirs are not disproportionately affected by the rise in inspection costs? More broadly, what is he doing to ensure that the FSA delivers value for money?

The debate has rightly acknowledged the FSA’s rollout of increased charges. The uplift from March 2025, which impacts our smaller abattoirs, will have a direct impact in this financial year and the next. The Opposition agree with the National Farmers Union that the further pressure on the small and medium-sized abattoirs that are struggling with additional costs and regulatory burdens has been exacerbated by the implications of the FSA’s additional charging.

Furthermore, we want clarity from the Government about what they intend to do on the 5% rule, which would significantly reduce the regulatory burden for the smallest abattoirs. As we know, if such a rule was in place it would enable smaller abattoirs to slaughter up to 5% of the total national throughput without triggering a full veterinary presence and therefore without the additional costs associated with their going above 1,000 units and having veterinary officers present. Will the Minister indicate the Government’s intentions on the 5% rule?

The Government must also consider the benefits to small abattoirs of future food labelling reviews. Will the Minister tell us the Government’s intentions? Better consumer awareness through food labelling would help smaller abattoirs to sell their produce as more humane, more local and better placed for the consumer. I would appreciate it if he outlined the Government’s intentions in that regard.

To summarise, our rural economy has faced additional pressures not just through the family farm tax and the removal of the SFI but through the dramatic reduction in de-linked payments to £7,200. It is being further hit by the dramatic reduction in small abattoirs and consequently the reduced ability to slaughter produce at a local facility. I call on the Government not only to roll out additional incentives nationally through the smaller abattoir fund but to take on board the many contributions that have been made in the debate, so they can ensure that our farmers and our rural economy continue to thrive.