An increase in the price of offal collection is hitting South West slaughter houses and other outlets – with potentially a knock-on effect to farmers.

Environmental charges and fuel increases have been blamed for the need of the hike in prices by specialist companies that collect offal and render it down for use in power stations and other installations.

One of the major operators, J L Thomas, of Exeter – part of the PDM Group – has notified abattoirs that fees will rise to £140 per tonne, plus VAT, from the beginning of next month.

That means a rise of more than 40 per cent in just six months, starting from a base of £98. The current fee is £110 per tonne.

The company says it has been forced to make the increase due to environmental charges and fuel increases

One Westcountry slaughter- house owner commented: "It seems most unfair that this rise should happen, particularly when we are very limited with the outlets which will take the offal, and other parts of animals that we cannot use. Inevitably some of this will be passed back to the farmer."

Though collection charges by the National Fallen Stock Company are fixed for the time being, another sector affected by the rise in collection prices will be the local hunts, which collect fallen stock from farmers for flesh for their hounds and as part of a service to farmers. Larger hunts in the Westcountry send up to eight tonnes a month for rendering.

Philip Simpson, commercial director of PDM Group, said: "Since 2008, the price of animal by-product disposal has decreased significantly. In the meantime, we have faced increases in fuel and energy costs, coupled with falling values of certain finished products. This combination has forced us to review our collection charges. The revised price structure is a market correction back to pre-2008 levels.

"We continue to lobby the Government to implement proposed changes to the Animal By-Product Regulations, which will increase the value of certain ABP materials and thereby achieve reduced disposal costs. We shall continue to monitor our costs and industry changes to ensure that we offer a competitive service to our customers."