Petition warns of falling chicken sales due to VAT

Farming correspondent

Saturday 16 March 2013

The British Poultry Council (BPC), retailer Morrisons and a cross-party group of MPs delivered a petition of more than 50,000 signatures to the Treasury this week.

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The petition – which secured strong support between September 10 and October 28 last year – was delivered a week before the Budget to express concern at how widely the introduction of VAT on rotisserie chicken was felt by consumers, food producers and farmers alike.

The BPC and Morrisons are urging the Chancellor to remember British poultry producers and retailers in next week's Budget.New figures from the BPC show sales of rotisserie chicken have been seriously affected by the UK Government's introduction of VAT on hot foodstuffs from October 1, 2012.Before this date, approximately 40 million rotisserie chickens were sold annually in the UK (around 770,000 a week). In the 23 weeks since the addition of 20% VAT came into force, sales have fallen by around 18%, with 3.2 mil-lion fewer chickens being sold over the period.The introduction of the tax has led to the average price of a hot, large plain chicken going from £4.65 to £5.55 – an increase of around 90p.It has resulted in supermarkets selling approximately 138,000 fewer chickens every week, or around 7.2 million fewer a year. The Treasury has earned £13.35 million on sales across this period.Peter Bradnock, chief executive of the BPC, said: "In a market where virtually all chickens sold are British, this is clearly having a detrimental effect on our farmers."Market round-upUnited Auctions sold 7541 prime hoggs at Stirling on Thursday to a top of £123 per head and 280p per kg to average 207p (+15.1p on the week).There were also 1351 cast sheep forward that sold to £145 for a Texel ram, while ewes peaked at £122.50 for Texels and £61.50 for Blackfaces, with the overall average levelling at £58.76.The Cumberland & Dumfriesshire Farmers' Mart had an unbelievable show of 10,172 prime hoggs in Longtown on Thursday –the largest number in more than a decade. Top prices on the day were £129.50 and 326p with the final average levelling at 219p (+17p).The firm's annual show and sale for both Hill Cheviots and North Country Cheviots, when 30 pens of 20 were presented, was incorporated into the day's proceedings. The Hill Cheviot championship went to T Aitchison, of North Shortcleugh, for a pen of 46kg hoggs that sold for £108 each.In the NCC section, the championship was awarded to Messrs Martindale, Lands, Ecclefechan, for a pen scaling 52kg that went on to fetch £118.There were also 4489 cast sheep forward with heavy ewes selling to £128.50 for Texels and averaging £75.74 (+£6.29), while light ewes peaked at £70.50 for Cheviots and levelled at £39.72 (+£5.54). Rams sold to £106.50 for a NCC and averaged £66.28 (+ £4.82).

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Petition warns of falling chicken sales due to VAT

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