Tumbling beef prices hitting Shropshire and Mid Wales farmers
Beef farmers across Shropshire and Mid Wales are facing "major problems" with the price being paid to them by retailers still plummeting.
They are being paid up to £300 less per breast than they were just a year ago, Meat Promotion Wales warned as the Royal Welsh Show got under way today.
The price has dropped from an average of £4.02 per kg in July 2013 to £3.55 per kg in June 2014.
The fall has been blamed on foreign imports flooding the market from as far away as South America.
Now Dai Davies, chairman of Hybu Cig Cymru (Meat Promotion Wales) said "the Sword of Damocles" is hanging over the industry.
He said the only way to save the industry is to develop a strong and trusting relationship between farmers and retailers.
"It's not an exaggeration to say that the Sword of Damocles is hanging over the beef industry," he said.
"While the standard of our livestock has never been higher and the quality of Welsh beef is appreciated by consumers here in the UK and across the world, the industry is facing major problems through a lack of strategic planning by some retailers."
Gwyn Howells, chief executive of Hybu Cig Cymru, added: "The beef sector in Wales and across Britain is going through a difficult period, with farmers receiving up to £300 less per beast than they were just a year ago.
"While the interim report is very much a work in progress, it does put forward a range of concepts which need to be investigated further."
Helen Cork, NFU County Adviser for Shropshire, said: "The market is being flooded with imports, we are getting beef shipped in from Ireland and elsewhere and it is saturating the market for our farmers."
