The lobby group for ranchers this week called on its members to hold the line on the falling price of prime cattle.
In a strongly worded message to the processing sector and to major retailers, the NBA said further price falls would "demonstrate beyond doubt that they hold beef farmers in contempt".
Market prices for beef are nine per cent lower now than this time last year. Income from male cattle is down by at least £200, or 25 per cent, a head according to the NBA.
The price falls are partially a result of the EU's Common Agricultural Policy (CAP) reform, which de-coupled direct beef production support.
Since 1 January this year, beef producers have been free to determine what and how much to produce. Their former direct subsidy entitlements are now paid under varying formulas and country schemes for cross-compliant farming.
The reform in effect removed nearly 40 per cent from beef producers gross profits, according to estimates.
"Finishers are at their wits end because of the losses they are making, breeders are in dread of calf prices at this autumn's sales and large parts of the production sector are already in diredanger of being dismantled," stated the NBA's chairman, Duff Burrell.
The NBA claims that the fall in price, pushed down by heavy competition at the retail level, has lowered cattle production.
In-calf heifer numbers are down by as much as 22 per cent in some regions, Burrell claimed.
He said cow and calf units are being bought by finishers, who are hoping to make a quick profit on a relaxing of the rules relating to bovine spongiform encephalopathy (BSE).
Breeders and the dairy beef bull sector is moving closer to shut down, he claimed.
"Over the last 12 months cattle buyers and beef retailers have ignored repeated warnings that farmers will not accept negative prices and another drop last week was very clearly a step too far,"he stated. "If the trade is serious about maintaining UK supplies it must show that is the case by resisting pressure, from whatever source, to drop purchase prices again."
Beef producers are being hurt by losses due to falling prices and some are considering getting out of the business, he claimed.
"They are no longer prepared to subsidise consumers, retailers and slaughterers by carrying losses themselves and both slaughterers and supermarkets should take this message seriously,"he stated.
Under the EU's 1996 BSE rules British beef cannot be exported to the rest of Europe from any animal more than 30 months old. The embargo, in effect since 1996, also prohibits the UK from exporting beef on the bone.
However, the European Commission last week said the UK has met the two conditions that the it had set out in order for discussions on lifting the embargo.
Back when BSE was at its height, the UK also put in place a rule to ensure that no animal older than 30 months could enter the food chain.
As of 7 November 2005, the UK is replacing the rule with a the testing system used in the other EU countries. This means older animals can enter the food chain, subject to a rigorous BSE testing scheme.
Before the BSE crisis in 1986, the UK's beef exports were worth about £1bn (€1.5bn) compared to £20m (€29m) last year, according to Food from Britain, a consultancy.
