FARMS Minister George Eustice has stepped into the row over processors plans to impose price penalties on cattle that have moved more than three times in their lifetime.

Asked for his views at The Northern Farming Conference in Hexham on Wednesday, Mr Eustice said he could see no rationale for it.

"They may say there are more risks involved, but if all the regulatory requirements have been met I cannot see why there should be any deduction on the price," he said.

Mr Eustice said the beef summit, which was held a year ago, had drawn up a code of conduct which included transparency in pricing. "I think we do need processors to keep to it," he said.

Guy Smith, NFU vice president who also spoke at the conference, said he understood a movement was a legal transfer of the ownership of an animal, not just a move between holdings.

Meurig Raymond, NFU president, recently challenged all processors that have the 'four residencies' rule to explain the rationale behind the requirement as many producers could not see why it was necessary or justified.

Meanwhile the Livestock Auctioneers Association (LAA) has called on several larger abattoirs who have started penalising beef producers for supplying cattle that have been moved more than three times during their lifetime to clarify exactly what constitutes a "movement."

Chris Dodds, LAA executive secretary, said: "Finishers around the ring will understandably want to know how many times the stores they are buying have moved during their lifetime so as to avoid a deduction when they sell them on to the abattoir.

"But we need to know what the abattoirs consider a movement to be. We know that moves through markets and to abattoirs don’t count, but is the move to a different CPH the same as a change in keepership?

"Auctioneers are keen to disseminate information that adds value to an animal at the time of sale, and to assist buyers around the ring in determining whether the livestock they are bidding on are suitable for their purposes.

"But they can’t afford to provide information that is potentially different to what’s looked for further down the chain, and that leads to a deadweight deduction at the abattoir.

"Until we get clarity, marts will not announce the number of moves animals have completed. Abattoirs need to communicate their needs clearly and consistently as the marts are not prepared to be responsible for potential charges or compensation payments due to errors outside their control."