Price deductions for animals coming from the bluetongue 'restricted zone' are being implemented within the processing sector and passed back down to the farmer, according to reports.
Sheep producers are seeing lower prices being offered by abattoirs for animals from within the bluetongue (BTV) restriction zone, which now covers 19 counties and one city authority.
Following the reports, the industry has called for bluetongue related costs to be absorbed by the entire food chain, rather than being passed back down to the farmer.
The NFU said the development was 'unacceptable' and urged for more fairness in the supply chain. It has called on other other processors not to follow suit.
It comes as farmers within the restricted zone - which now covers a large swathe of England - continue to work with Defra to help slow down the spread of bluetongue.
However, being within the zone has challenging implications for businesses, particularly surrounding movement restrictions.
Responding to the reports of price deductions, NFU livestock board chair, David Barton said fairness in the supply chain was essential to a thriving industry.
He said: “We are incredibly disappointed to hear that some farmers in the restricted zone are being unfairly penalised by having deductions taken from some processors in the supply chain.
“Livestock farmers up and down the country are facing a very difficult time with the threat of the bluetongue virus and they are doing everything they can to limit the spread by adhering to biosecurity measures.
"We will continue to raise our concerns with Defra, that the requirements being imposed on processor is adding costs, but we must see farmers within the RZ are treated fairly.”
The NFU has raised the disappointment directly with Defra. The union said it was likely occurring due to the challenges placed on processors by the Food Standards Agency's (FSA) restrictions.
For example, processors must meet strict requirements on lairage and lorry disinfection when taking animals from the restricted zone.
Farmers and livestock keepers in England's restricted zone must follow restrictions on animal and germinal product movements.
Susceptible animals cannot be moved out of the zone without a specific licence, and a general licence to move animals to designated abattoirs is also available. Movements within the restricted zone are permitted.
