T. 07768 654955 E. scott.walker@scconsultancy.uk
Quality Meat Scotland highlights the economic potential of Scotland’s beef sector
Quality Meat Scotland (QMS) highlighted the economic potential of Scotland’s beef sector, current industry concerns and changes on cattle herd at the annual Scottish Association of Meat Wholesalers (SAMW) conference and lunch on Friday 6 September 2024.
QMS Chief Executive, Sarah Millar and QMS Market Intelligence Manager, Iain Macdonald addressed the Scottish red meat processing industry at The Pavilion in Ingliston on the economic opportunities and challenges facing the Scottish beef herd.
Iain Macdonald said: “Our recently published Red Meat Industry Profile report highlights continued strong appetite for beef in Scotland, with an 8% increase in consumer spending on red meat and a rise in red meat processing turnover for a fourth consecutive year by 1% to £975 million. This popularity and the foreseeable demand from a growing UK population is set against a further reduction in the suckler herd, with beef cow numbers down by 2.5% year-on-year in December 2023 and an annual fall in calf registrations of 2.7%, which will have a knock-on effect to prime beef output once these cattle reach slaughter age in 2025.
“We have developed a projections model which shows that if action was taken in three areas of performance – stabilising the beef herd against the long-term downwards trend, boosting productivity of the breeding herd and slowing the outflow of prime cattle to England and Wales – the projected decline based on existing trends could be reversed with potential to generate a significant boost to the Scottish economy.”
The growth scenario includes an extra £76.6 million of output and £17.5 million of GVA added to the Scottish economy through the prime beef sector in 2030 compared to 2023. In addition, output is £143.1 million higher and GVA £36.1 million higher in this growth model when compared against the 2030 baseline scenario. As well as beef production on Scotland’s farms and in its processing sector, this modelling accounts for the additional supply chain effects which help underpin the economic vitality and social fabric of Scotland’s rural communities.
Sarah Millar said: “We are proud to support this crucial conference, which brings together key players across Scotland’s red meat processing sector.
“Scotland’s iconic beef sector is at the heart of Scottish agriculture and food and drink manufacturing, adding economic value across almost every constituency. Our model highlights significant economic opportunities for the Scottish red meat sector which has a positive impact that ripples through our society.
“We must collectively rally to halt, reverse and improve current trajectories which show a further reduction in the number of Scottish-born cattle if underlying trends were to continue. QMS is working closely with key stakeholders from across the red meat supply chain on action to boost productivity and support the case for systemic change for the sector and those industries and communities which rely on its success.”
In addition, QMS shared the initial tranche of results from research it has been undertaking into farmer decision making, further exploring some of the ‘why’s’ behind recent changes in the beef herd.
These findings demonstrate that there is no one single reason across the country that is impacting on suckler herd decline, with a mix of concerns being profitability levels, an aging workforce, availability of labour and confidence in agricultural support payments. Additional factors included increased administrative costs and movements into other sectors such as sheep, dairy and arable farming.
The top factors influencing the cohort which stopped farming were availability of labour and input costs, and, for the cohort which decreased their herd size, profitability was ranked as the main reason.
Sarah Millar also updated the industry audience on QMS’s five-year strategy to 2028 to make Scotland the choice for premium red meat.
By Alistair Donaldson
Neil was a hugely respected stalwart of the meat industry, a point strongly endorsed by the fulsome comments I have received in recent days. Many have said he was always such a supportive and trusted friend. Not only did he build a very successful business in a trade notorious for its meagre profit margins, but he also made a major contribution to meat industry ‘politics’.
Initially this was via SAMW and MLC, of which he was a Commissioner (2002-2008), then latterly with Scotland Food and Drink. He was also closely involved in the formation of Quality Meat Scotland.
I had the privilege of working with him over many years having first met him in the early ‘80s in the auction ring at Bosomworths – when he and Jim Robertson (SAMW President 1987-89) were vying with each other to buy cattle!
We worked closely on the two key crises that hit the industry in the 1990s and 2000s, namely BSE, with both its immediate and long-term impact, and FMD, which was equally devastating for farmers and meat processors.
It was when I became SAMW Executive Manager during Neil’s Presidency (2000-2003) that we really developed our working relationship. SAMW’s ability to punch above its weight, becoming a ‘go to’ organisation in the face of many national and international pressures was, in no small measure, due to Neil’s clear, direct and insightful views. He never shied away from stating what needed to be said, a strength which earned the Association respect in the corridors of power in Edinburgh, London and Brussels.
Away from the serious side of the industry there were numerous enjoyable lighter moments, of course, often created by Neil’s pawky sense of humour. Following a particularly sticky meeting in Brussels, for example, the SAMW team was ‘regrouping’ over a couple of beers in airport departures when Isla Roebuck and I decided that Neil’s sterling efforts that day were worthy of the title ‘Lord Pathheid’ of that ilk. The award was duly bestowed and recorded on the back of a Leif Blonde beer mat.
A somewhat greater honour came his way in 2009 when he was awarded an OBE for his ‘distinguished services to the meat industry’. He duly told a local news reporter that he was ‘chuffed to bits’ by the award, a feeling which no doubt also accompanied the FRAgS recognition he was given by his peers in the industry.
I was personally delighted to nominate him as a Liveryman of the Worshipful Company of Butchers, a body of which he became a staunch supporter and an enthusiastic and popular attendee of Court Lunches.
He was in truth a ‘man o’ pairts’ to whom the industry owes a huge gratitude. He will be sorely missed by all of us.
Our thoughts are with his beloved Lyndsey and hugely cherished daughters Kate, Louise and Carol, son-in-law James and grandson Max.
It is with great sadness that we announce the death of Neil Stoddart OBE, a former president of the Scottish Association of Meat Wholesalers (SAMW) and a leading figure across many other Scottish and UK farming organisations.
Neil, who led the Broxburn-based meat business, AK Stoddart, through a sustained period of expansion prior to his retirement as owner in 2015, happily referred to himself thereafter as a farmer. Awarded an OBE in 2009 for his ‘distinguished services to the meat industry’ Neil was also on the board of Quality Meat Scotland, alongside taking roles within Scotland Food & Drink, the Meat & Livestock Commission and as a member of the Worshipful Company of Butchers.
Always providing a clear voice within the red meat industry, Neil will be sadly missed by his former SAMW colleagues and by all others who joined him during many committee meetings and industry-based social gatherings.
SAMW’s Executive team and members express their sadness and deep condolence to Neil’s wife Lyndsey and his family.
The Scottish Association of Meat Wholesalers will hold its annual conference and lunch on Friday, 6 September, at The Pavilion, Ingliston, Edinburgh.
This is a crucial gathering for Scottish red meat processing, bringing the industry together to discuss the current state of the industry, the challenges it faces, and the opportunities that lie ahead.
The success of this event is made possible by generous sponsorship from leading companies within the red meat industry. Their support not only underscores their commitment to the growth and sustainability of the Scottish red meat sector but also enhances the quality and reach of the conference.
We are proud to acknowledge the sponsors for this year’s event, whose contributions ensure its continued success. This year’s sponsors are:
We find ourselves at a pivotal moment regarding the impending increase in FSS meat industry charge rates for the fiscal year 2024/25. The 20% surge in the Official Veterinarian (OV) rate and the 17% hike in the Meat Hygiene Inspector (MHI) rate pose significant challenges to our industry given the current economic climate within which it is operating.
In our recent dialogue with Jenni Minto, Minister for Public Health, we outlined three primary requests:
While FSS has furnished us with a more detailed breakdown of the costs comprising the 2024/25 charge rates, the unresolved issue of the Ministerial discount persists. As the first invoices will soon be issued, we have once again reached out to the Minister, urgently urging a delay in the implementation of these new charge rates.
Considering that a significant portion of the rise in this year’s charge rates can be attributed to Scottish Government policies, including the forthcoming implementation of the 35-hour workweek from October 1st, 2024, and the pay award increases spanning from 2023 to 2025, it’s important to recognise that these factors are beyond the control of our industry. As they do not mirror the commercial realities within meat plants, it becomes imperative to seek additional support through this year’s Ministerial discount funding.
In the face of escalating costs, our customers rightfully expect us to explore every avenue to mitigate these increases through cost-saving measures. We maintain steadfastly that any cost escalations in FSS charge rates should be met with corresponding efforts to offset them. It is our firm conviction that the burden of increased costs for official controls should not unilaterally fall upon the industry without exhaustive exploration of all operational adjustments to mitigate these escalations. As it stands many plants may simply not pay the increase when faced with the invoices calculated at the new charge rates.
SAMW continue to collaborate with FSS, offering insights and potential strategies that could alleviate the industry’s burden. As we navigate this challenge, we remain committed to advocating for a sustainable future for our sector.
By Scott Walker
At the request of the Scottish Government, Food Standards Scotland (FSS), in collaboration with the University of Edinburgh, modelled the impact of decreasing meat and dairy consumption on the nation’s intake of essential nutrients. This study was prompted by the Climate Change Committee’s suggestion for the Scottish Government to promote a 20% reduction in meat consumption by 2030, increasing to 35% by 2050.
Yet, amidst calls for reduced meat consumption to mitigate climate change, FSS issues a cautionary note. They emphasise that a blanket reduction in meat and dairy consumption could exacerbate existing micronutrient deficiencies, particularly among those already with low intakes. Therefore, their advice regarding the consumption of red and processed meats remains unchanged.
The findings of the research underline the importance of a well-rounded diet that includes Scottish red meat. The research conducted by Food Standards Scotland and the University of Edinburgh indicates the necessity of finding a balance between climate objectives and maintaining people’s health and nutrition. Red meat serves as a significant source of vital nutrients crucial for overall health, including iron and selenium for immune function, B vitamins for energy, zinc for children’s growth, and vitamin D for bone density.
Issuing a blanket public health recommendation to decrease meat consumption could disproportionately affect the nutrient intake of women and girls, many of whom already struggle to meet dietary recommendations. In Scotland, average consumption of red meat now falls below the recommended daily limit of 70g set by government experts, with women showing lower consumption than men. This suggests that most individuals are already consuming an appropriate amount of red meat for their health and well-being.
So, what’s the takeaway from this debate? Moderation is key. Incorporating Scotch Beef, Scotch Lamb, and Specially Selected Pork into a diet alongside other nutritious options, red meat remains an integral part of a healthy eating plan.
Scotland is renowned as one of the most sustainable regions for producing high-quality, nutritious red meat. Farmers consistently operate in harmony with the environment, particularly within the beef supply chain, actively working to reduce emissions in accordance with government policies. Quality Meat Scotland (QMS) supports Food Standards Scotland’s aim of encouraging adherence to the official Scottish Dietary Goals. Red meat can be a component of a healthy, balanced diet, especially when consumers opt for brands such as Scotch Beef, Scotch Lamb, and Specially Selected Pork, which adhere to evidence-based welfare and environmental standards.
Rather than setting targets for reduced meat consumption solely to address climate change, there should be a concerted effort to achieve all of the Scottish Dietary Goals and support a greater number of people in adopting the Eatwell Guide dietary recommendations.
Lively Discussion on Recruitment, Perception, and Future Hopes
Kicking off the New Year, industry leaders gathered for a thought-provoking panel discussion at SAMW’s New Year Lunch 2024. The conversation delved into pressing issues facing the meat industry, from recruitment challenges to changing perceptions and hopes for the future. The lively discussion saw Marion MacCormick, Scotland Food & Drink Board Member; Jack Brown, Kepak management trainee; Scott Walker, SAMW Executive Manager; Emma Hodge, AgriScot beef farm of the year 2023; and Andrew Duff, MacDuff 1890, sharing their insights and experiences.
NYL Panel (Left to right): Marion MacCormick, Scotland Food & Drink Board Member; Jack Brown, Kepak management trainee; Scott Walker, SAMW Executive Manager; Emma Hodge, AgriScot beef farm of the year 2023; and Andrew Duff, MacDuff 1890.
Question One: Embracing What We Love and Driving Change
The discussion began with a reflection on the industry’s positive aspects and desired changes. Participants unanimously expressed their love for the Scottish meat industry while highlighting the need to cut red tape that has increasingly burdened farmers. Addressing misconceptions surrounding the industry and promoting a proper appreciation for the rich offerings in our larder were key goals. The call for change echoed in the desire to dispel inaccurate claims perpetuated by the non-meat lobby.
Question Two: Attracting New Talent and Breaking Stereotypes
Recruiting the next generation emerged as a shared concern. Participants pointed to the challenge of changing negative perceptions of meat, especially when schools label it as detrimental to health. The need to engage with schools to provide an accurate representation of the industry and leveraging social media as a communication tool were emphasised. Acknowledging the industry’s ageing demographic, the discussion called for greater involvement of the younger generation in shaping the future of farming.
Question Three: Navigating Livestock Challenges and Ensuring Food Security
Livestock numbers and food security took centre stage in the conversation. Suggestions included revisiting the grading system to reward producers aligning with industry requirements and providing additional financial support to farmers facing rising input costs. Participants stressed the importance of ensuring that government policies understand and support food security requirements. Concerns were raised about potential constraints on livestock production amid ambitious tree planting initiatives, emphasising the need for a balanced approach.
Question Four: Hopes and Aspirations for the Next Decade
As the discussion turned towards the future, panellists shared their hopes for the next decade. Continuous innovation, unity within the industry, and the success of traditional meat production were underscored. The collective aspiration was for ensuring the continued production of the best meat in the world. The sentiment echoed a desire for resilience and growth within the industry.
Editor’s Note: These insights are condensed excerpts from a dynamic debate that included informed contributions from SAMW members and guests. The event not only provided valuable perspectives but also set the stage for a promising 2024 in the meat industry.
One of London’s most talked about new places to eat has credited the Scotch beef it serves for helping win rave reviews. Michelin-starred chefs and top food critics have been some of the first to book a table at The Devonshire, near Piccadilly Circus, since its opening in November.
The Devonshire Beef Room. Photo credit – Mike Taylor
Charlie Carroll, founder of the well-known Flat Iron steak restaurants, who is behind the new venture with business partner Oisin Rogers, commented: “It is very rewarding to be on the radar straight away after opening.”
Selected by three Michelin starred chefs for Sunday lunch in its first week, and applauded by influential reviewers like Giles Coren (The Times), The Devonshire team source their all-important beef from SAMW member, AK Stoddart, prompting Charlie to declare that the Scotch Beef they’re serving stands ‘toe-to-toe with the finest from anywhere in the world’.
Responding to such praise, Sarah Millar, CEO of Quality Meat Scotland, said: “This is a wonderful example of the farm to high-end tables that Scotch Beef, as a brand and a product, can achieve. The team at Stoddart’s has invested great care in ensuring that the meat supplied to Charlie, and his team, is consistently of exceptional quality with a fantastic associated story of dedicated farmers producing livestock to the highest of standards, from the landscapes of Scotland.”
Food Business Operators (FBOs) in the red meat sector have a direct relationship with Food Standards Scotland (FSS) via its official controls, including inspections, enforcement, advice and guidance.
An ongoing dialogue between SAMW and FSS is important to ensure that future regulatory developments are fully reflective of the sector and are developed based on good knowledge and understanding of the red meat sector’s needs, challenges and opportunities.
In order to foster a strategic partnership between the regulated meat industry in Scotland and the regulator a strategic engagement plan has been developed to enhance communication channels and to build a strong and collaborative relationship between the regulator and the industry.
Within the engagement plan are regular technical groups for FBOs to take part in and regular opportunities for engagement between FSS and SAMW.
A Scottish Government spokesman made the following comment to The Courier – https://www.thecourier.co.uk – in response to SAMW’s blog post – Time running out on veterinary declarations.
“This new certification procedure is a direct consequence of the choices made by UK government when it negotiated a hard Brexit.
“The Scottish Government is left with no alternative but to implement these new requirements, reluctantly, as self-certification is not compatible with EU import requirements. We are working to make these changes as simple as they can possibly be and to avoid unnecessary bureaucracy and burdens.
“To support farmers, the Scottish Government is currently exploring an innovative digital solution whereby animal veterinary visits can be recorded and are readily available to certifying official veterinarians. Once initial scoping work has been carried out and initial procedures agreed full guidance will be made available.”
T: 07768 654955 E: scott.walker@scconsultancy.uk
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