A NORTH Yorkshire meat company hit by an EU ban on its products has launched legal action against the UK food regulator it accuses of "keeling over" under pressure from Brussels.

Newby Foods Ltd, based in Newby Wiske, near Northallerton, says it was "effectively put out of business" when the Food Standards Agency (FSA) suspended it from producing its innovative beef and lamb products and reclassified others - under orders from the European Commission.

The company says the FSA accepts its de-sinewed meat carries no health risks and agrees the decision was wrong, but has been "bullied" into kowtowing to the EU amid threats that certain British meat products could be banned from European shelves.

A judicial review into the FSAs decision - which Newby says cost 40 jobs and more than £5m in wasted investment - opened yesterday at London's High Court, with the company arguing that the regulator was wrong to "cave in".

Hugh Mercer QC, for Newby, said: "How does it come about that you have a regulator that keels over and accepts the view of a foreign body? It would not do it if it were any other body than the European Commission."

Mr Mercer said Newby developed an "innovative mechanised butchery process" whereby meat was removed from butchered bones by friction and then pressed through small holes to remove any bone, gristle or sinew.

The resulting product, previously approved by the FSA as a "meat preparation", looks like finely minced meat, the barrister added.

But the Commission refuses to recognise it as such and persuaded the FSA to adopt its interpretation of EU regulations.

The FSA in April last year imposed a temporary moratorium on Newby producing de-sinewed meat from beef and lamb bones.

A further order required Newby to label its pork and poultry products as "mechanically separated meat" (MSM) - which is less desirable and valuable because it cannot count towards the meat content of food products.

"The effect of the decision was to abolish overnight a substantial portion of Newby's business, which had developed in close co-operation with and express approval of the FSA over many years," Mr Mercer added.

The FSA's decision to "close down an industry without due process", was unlawful, as was the Commission's interpretation of EU regulations, the QC added.

Clive Lewis QC, for the FSA, said the regulator had acted lawfully and acceded in order to "bring the UK into line" with the Commission's stance.

He added: "The FSA considered that if the Commission were to seek to impose safeguard measures of any description, that would have a catastrophic effect on the reputation to the UK meat industry."

The hearing continues.