T. 07768 654955 E. scott.walker@scconsultancy.uk
Scotland’s meat wholesalers are looking for 2011 to be the year when some major, long-running issues are finally resolved, hopefully placing the production, processing and marketing of Scottish meat on a consistently profitable footing.
Industry leaders also say that the year ahead needs to include the development of a new meat inspection framework which is open and transparent and free from hidden agendas.
“There were many good beginnings for our industry in 2010,” said Alan Craig, president of the Scottish Association of Meat Wholesalers (SAMW). “We were particularly encouraged by the depth of debate surrounding the Pack Inquiry. This showed the level of concern over future supplies which is being felt by almost everyone in the livestock and meat sector.
“However, while accepting that progress was made in 2010, especially in identifying support options for the future, it’s clear we still have a lot of unfinished business on the table concerning this issue. In spite of everything that has been said and written about the Pack Inquiry, the bottom line is that real decisions have still to be taken. Until we reach that point, with everyone buying into a new support structure, there will be no lasting solution to the downward pressure on cattle and sheep numbers in Scotland. While we obviously have to find the most equitable way possible to apply all available support to the farming industry, halting the livestock sector’s slide in numbers remains the number one priority for us all.
“Another piece of unfinished business involves the meat inspection system and the charges for inspection which the Food Standards Agency (FSA) appears determined to pass on to the industry. I wouldn’t want to suggest that we have even had a ‘good beginning’ in this context. Having been personally involved in the detail of this issue now for what feels like an eternity, but is probably near to four years, I can safely say we are no nearer now to a suitable negotiated outcome as we were when we began. The ‘dispute’ has also become personal, some may suggest even dirty! Played out regularly in the trade press and more recently; escalating to mainstream media. The irony is that there’s not a winner in sight, only losers!
“The facts, that we can’t lose sight of, remain: Industry cannot ignore that unwinding a decade of ‘Carte Blanche’ budgeting and management in the Meat Hygiene Service, after the BSE disaster of 1996, does take time and is clearly yielding results, many of which were deemed as ‘impossible’ only two years ago. This effort has gathered a head of steam and will, I’ve no doubt, continue to make substantive savings.
“FSA must accept the industry is not trying to ‘kill off’ or ‘dumb down’ the inspection service. We have always stated, and never altered our view, that we want a ‘consistently professional and practically efficient inspection service’ delivered at a competitive cost. The cost gap between the two ‘parties’ has narrowed, but belittling that difference to a farthing on a packet of mince or a shilling on a pig’s ear is most unhelpful, some would even suggest naive, bearing in mind, in many cases, that this is precisely what the industry survives on. In addition, to recover it, a Bill would have to pass through Parliament compelling consumers to pay those amounts in the form of a tax.
“So what is the answer? Well, it is certainly not the preservation of the status quo. Attitudes, and possibly characters, would need to change. From an SAMW point of view, most of our members favour following a devolved Scottish solution, a view which is attracting empathy from politicians of all denominations and one which is most likely to deliver the negotiated outcome they want. Allowing our members to get back to managing their own businesses, without having to read or listen to this current soap opera, will be a priority for the Association in 2011.
“An area where progress was definitely achieved in 2010 was in lobbying for the EU-based review of TSE controls. SAMW’s consistent position on this has always given top priority to the need for TSE regulations to be reviewed so that they are risk-based, proportionate and cost-effective, while assuring a high level of food safety. Although the latest indications from Brussels regarding possible changes are definitely encouraging on these points, we will be looking for some solid decisions to follow in 2011.
“Another positive development was the appointment of Alan McNaughton and John Craig to the Board of Quality Meat Scotland (QMS). Both are deeply involved in the meat industry on a day-to-day basis in addition to being SAMW office bearers and will, I’m sure, have much to contribute to QMS over the next few years.
“The shaping of a workable approach to sheep EID was another 2010 beginning which we applaud and are confident will produce real benefits for the whole industry in the year ahead. In this context, tribute is due to the willingness of SAMW members and Scotland’s auctioneers to adopt an off-farm EID recording system, a solution which will avoid placing unreasonable burdens on producers. This will, given time, benefit the whole industry practically. It also potentially provides the foundation of a movement management system, if prime lamb is to feature in a future subsidy payment structure.
“A welcome and much-needed re-growth of meat exports by SAMW member companies in 2010 was also hugely encouraging. Many businesses made full use of currency exchange rate advantages to re-establish links with previous customers and explore new international sales opportunities. Such export success, of course, is a good reminder of the respect which Scottish meat commands in overseas markets. It’s also another reason why we must continue to work to save, or indeed boost, domestic livestock production. It’s an opportunity for the future which must not be eroded.
“Finally, one area of unfinished business which no one is expecting to be resolved in 2011, concerns the financial challenge facing the whole economy. SAMW’s focus in this context will be on the need to remind political leaders and financial institutions that although food and farming isn’t entirely recession-proof, very few other industry sectors are capable of achieving the levels of sustainability, efficiency or longevity clearly demonstrated by our members for decades. Those leaders also need to review their latest fashionable practice of judging the development needs of businesses based on the size of their turnover. Nobody can argue that SMEs are deserving cases when issuing grant support but many larger companies also need similar opportunities. The message has to be clear; ‘size doesn’t matter’, treat each case on its own merit and allow the sector to compete; enabling Scotland’s many excellent, long-standing meat businesses to continue processing and marketing quality products on domestic, European and global markets. Our industry performed well in 2010 and will again in 2011, especially if we can clear some of the sector’s frustrating ‘unfinished business’.”
Alan Craig, president of SAMW, presents cheques totalling £5000 to the British Heart Foundation, Crossroads Caring Scotland and the Grampian Cardiac Rehabilitation Association.
An additional £1000 was given by SAMW, in an earlier presentation, to the Arbroath branch of the Royal National Lifeboat Institute.
Funds for the presentations were raised during a charity auction at the Association’s annual conference and dinner in Edinburgh in April 2010.
“We’re delighted to be able to support each of these important
charities,” said Mr Craig. “I also wish to thank our members and
sponsors for their continued generosity in enabling us to maintain this
valuable SAMW tradition.”
British Heart Foundation – £2000. SAMW members selected this fund in
memory of Steve Dickson, Sales Manager for Systems Integration who died
of a heart attack last year. Steve was extremely well known and liked
in the industry and was an enthusiastic supporter of the Association’s
annual conference. He is greatly missed. The cheque was received on
behalf of the Foundation by John Graham, Business Development Manager
of Systems Integration.
Crossroads Caring Scotland – £2000. Crossroads seeks to improve the
quality of life of carers by allowing them to take a much needed break
from their caring duties. The cheque was received by Alison Hardie,
Crossroads’ Fundraising Manager. For more details on Crossroads click here
Grampian Cardiac Rehabilitation Association – £1000. The Association
helps people in the Grampian area with cardiac problems to improve
their quality of life by adopting a healthier lifestyle, the
cornerstone of which is participation in regular safe exercise
programmes. The cheque was received by Douglas Pacitti, Association
Director. For more details on GCRA click here
Royal National Lifeboat Institution – £1000. (Presentation made
earlier). For more details on RNLI click here
(l-r) John Graham, Douglas Pacitti, Alan Craig, Alison Hardie & Ian Anderson
The Food Standards Agency’s consultation on proposals to ‘recover’ £32m in charges for meat hygiene and animal welfare is a ‘vengeful and spiteful act’ designed to punish the meat industry for successfully preventing a previous attempt to increase meat inspection charges.
This is the view expressed by Ian Anderson, Executive Manager of the Scottish Association of Meat Wholesalers (SAMW). He also said that the Association would ‘resist this latest move by FSA with every resource available’.
“In 2009, we ran a successful campaign against FSA’s previous attempt to impose swingeing and unjustified increases in inspection charges,” said Mr Anderson. “At this time, however, the FSA Chief Executive said that the industry would ‘pay for its action’. We see this latest consultation as FSA’s revenge, dressed up in sheep’s clothing maybe, but revenge nevertheless.
“It is also totally irresponsible of a government agency to bring forward such proposals at a time like this. If implemented as they stand, they would seriously damage many currently successful businesses. In some cases their impact could even prove fatal. Our industry generates sales worth many billions, both at home and abroad, contributing hugely to the UK economy and providing widescale employment in rural areas across the UK. This is, however, an industry run on extremely tight margins, far tighter than FSA have ever managed to apply to their operation. We do not appreciate, therefore, such an ill-timed attack on the viability of the meat chain at a point when the entire industry is working hard to protect sales, margins and jobs.”
The Executive Manager also said that he believed there were many questions to be answered by FSA before the organisation could be taken seriously and its proposals addressed as they required. This included a number of ongoing developments on meat inspection which could alter the way the process works and the cost structure involved.
“We would prefer to ‘see the colour’ of FSA’S money on these changes,” he said, “before discussing who should pay for what. It’s also important to remember that what is being talked about in this consultation is only part of the potential added cost for the industry with TSE charges also set to be transferred by the government, adding maybe another £8m burden to the meat chain.”
Mr Anderson also took issue with FSA’s lack of openness on its own expenditure.
“FSA claims to be an open organisation but the evidence suggests otherwise,” he said. “SAMW has asked FSA for nearly three years for a breakdown of its overhead costs. While a response has been promised on many occasions, including by the chief executive, nothing worthwhile has ever been provided. We can only assume, given their excessive size, that they’re too embarrassed to tell us the truth. The only conclusion we can draw is that FSA’s commitment to grossly expensive public sector pensions, a staff absentee level which is well in excess of the national average level, plus over-generous employment benefits, terms and conditions, forces them to remain silent.
“It’s against this background therefore that SAMW takes the view that this new consultation is a work of fiction, is devoid of realism and is extremely naive. It’s also totally out of step with the needs of the meat industry and the consumers for whom the meat inspection process is designed.
“Frankly, our response today is that this is a tawdry consultation which confirms that the FSA chief executive and board are not longer ‘fit for purpose’. They display little knowledge, understanding or feel for the industry, contenting themselves instead with either a myopic view of the meat business or, more likely, downright prejudice against the industry.
“SAMW cannot see any future for FSA in Scotland and will oppose the proposals in this consultation with all the resources at our disposal.”
Full details of the consultation are available on the FSA website. Click here to access.
Alan Craig, President of the Scottish Association of Meat Wholesalers, said: “We are generally supportive of the majority of the Report, which is good value and contains abundant evidence of subsidy being targeted at livestock production activity. However, our Association is concerned at the proposed removal of the calf-based payment for those farming non-LFA land. This accounts for 15% of Scotland’s most productive farmland, which is home to 18% of the country’s suckler cows and 41% of all finished cattle. These areas have many highly efficient and progressive cattle breeders and finishers whose specialist skills in the production of quality Scotch meat may be put at risk as a result of this proposal.
“While understanding the theory behind committing the country’s ‘more productive’ land to area based subsidy and the flexibility of the marketplace, we believe this move, in the short to intermediate term, is very high risk. We therefore urge that consideration be given to retaining a modest ‘base’ rate across all calves, regardless of their place of birth, with a subsequent increase for those raised in less favoured areas.
“We have consistently called for potency in the delivery of a calf payment scheme and today’s announcement certainly delivers this. Together with the movement for dairy traits, and the increased overall funding, the message is positive. We do, however, question the balance which is proposed between hill and low ground areas.
“The lamb payment initiative, which has come as a welcome surprise, demonstrates the importance of retaining critical mass within the sector as well as keeping flocks and production on land which is not suited to alternative uses. How these payments are executed, however, may prove problematic.
“We find the labour payment trigger to be quite ingenious; again targeted at production activity. Here again, agreeing the necessary procedures will no doubt prove challenging but should be well worth the effort. We also welcome
the initiative to bring ‘new entrants’ into the subsidy system.
“We will, of course, work closely with government and other industry bodies to ensure today’s report is subjected to full examination by those at the sharp end of producing Scotland’s food. We are all looking for solutions which will deliver increased supplies of quality meat in a way which is fair to those who are working hard within our industry, from plate to consumer. In that context, we wish to record our considerable appreciation to the Pack Committee for their work, despite the reservations we have expressed.”
Full details of the Pack Inquiry final report are available on the Scottish Government website. Click here and follow the site directions.
SAMW has written to the Veterinary Medicines Directorate welcoming their decision not to increase charges for the surveillance of residues of veterinary medicinal products and other substances.
“The Association is very pleased that there will be no increase in charges this year,” wrote Executive Director, Ian Anderson. “Our remaining concern, however, is the revision of Council Directive 96/23.
“Our view is that testing could be better targeted towards foodstuffs carrying the greatest risk and we are pleased to note that work on reviewing 96/23 is now under way. I would be grateful to know the timescale for this.”
He then added: “Until this Directive is changed there should be no further increases in charges to the industry.”
Click here for details of Council Directive 96/23
August 24 2010
Scotland’s meat wholesalers have challenged the Food Standards Agency
(FSA) to address meat inspection ‘enforcement problems’ as a matter of
urgency.
The call, contained in a letter to FSA from the Scottish Association of
Meat Wholesalers (SAMW), follows the publication of a detailed
enforcement review by a leading industry figure who concluded that the
Agency’s current approach to enforcement was extremely ‘heavy-handed’
in its reliance on the use of criminal law to deal with issues which
were, at worst, civil law matters.
The enforcement review, carried out by Alan Kirkwood, a highly
respected figure in the Scottish industry with experience of both
running abattoirs and policy development, acknowledged the crucial
importance of enforcement during the early days of the BSE crisis. The
subsequent introduction of FSA in 2000 had also helped build consumer
confidence.
However, Mr Kirkwood also points out that while BSE has all but
disappeared from the UK, the regulatory regime from the peak years
largely exists to this day. He is extremely critical of the way in
which today’s regulations are being applied to the industry with FSA
behaving like a police force, ready to bring criminal cases against
companies when no actual risk to human health is evident.
“This is damaging, both to industry and the reputation of a Government
publicly committed to reducing bureaucracy and red tape,” he said.
“There has to be a line drawn so that industry is subject to
proportionate treatment and reasonable costs and FSA can become a
modern proportionate regulator subscribing to mainstream Government
business policy and practice.
“The biggest stumbling block to a more consensual, risk-based approach
would appear to be the fact that although, publicly, the FSA is making
some encouraging noises about working together, the common reality is
that unnecessary conflict with the meat industry is still far too
evident.”
Mr Kirkwood’s overall conclusion identifies three options on
enforcement: (a) do nothing, (b) scale back legislation or (c) leave
controls in place, but curtail legal prosecutions on all incidents
except those involving conscious gross negligence.
In favouring the third option, he adds that this would protect public
confidence in the knowledge that the industry was still under
independent publicly controlled supervision while at the same time
wiping away the ‘one size fits all’ approach to enforcement which
polices the industry to the lowest common denominator and with the
constant threat of prosecution.
Alan Craig, SAMW president, welcomed the review, adding: “For too long
the FSA has espoused partnership working with abattoirs to deliver
proportionate, risk-based controls, whilst falling well short of these
aspirations in practice. We have had members dragged through the courts
and criminalised for miniscule breaches of regulations which were not
in any way negligent or a tangible threat to meat hygiene or public
health.
“I agree entirely with Mr Kirkwood that the FSA need to seriously
review their approach to enforcement. The current draconian approach,
which they claim is the only course of action open to the agency, does
nothing to promote the harmonious and pragmatic working relationship we
all strive for and indeed, the public deserve.
“Imagine, for example, a typical abattoir slaughtering say 1000 cattle
a week and commanding an unblemished record on the removal of spinal
cord for four years. That’s a case of successfully dealing with 388
miles of spinal cord! If, however, an operative failed to remove the
equivalent of a one human fingernail sized piece of spinal cord, the
owner/manager would be prosecuted, with FSA claiming that this is their
only option.”
END
SAMW responded to a P&J request for comments on a recent exports report issued by the National Beef Association. Click on this post to read the full article.
The Scottish red meat industry has grasped an opportunity to convert by-products, which in recent years incurred heavy disposal costs, into saleable materials. As well as reducing waste, these products are now generating a valuable income stream for the industry.
During the past two years (from 2008 – 2010) Scottish red meat processors have turned the £2.2 million cost of safely disposing of non-carcase parts into a £13.3 million revenue stream – a £15.6 million improvement.
This success story for the industry has been aided by a Quality Meat Scotland project, with £300,000 funding from the Scottish Government, to rekindle the trade in these fifth quarter products, such as edible offal, pet food and rendering materials. At the same time, the volume of unsaleable materials and costs has been reduced.
The project, which was recently completed, saw specialists providing expert advice on the recovery of non-carcase parts, for example offal harvesting and preparation to meet customer specifications, which have been unused in recent years. A range of publications offering practical guidance on how to optimise the recovery of the parts was also produced by QMS.
When the project started, QMS estimated that adopting the processes could help generate an extra £3 million a year for the Scottish red meat industry. However, the ability of the industry to adopt the latest techniques, along with advice on making the most of the fifth quarter, saw a very positive response.
Scotland is now leading the UK in capitalising on fifth quarter opportunities, observed Donald Biggar, Chairman, Quality Meat Scotland.
Speaking during an industry breakfast at the Royal Highland Show today (Thursday 24th June) Mr Biggar said processors had also been successful in kindling additional export opportunities for the products.
“Every part of the animal – from the most to least valuable parts – has been raised to the same world leading assurance standards, so it’s a real waste for companies to be paying to dispose of parts of the animal which are recoverable and marketable.
“At a time when we are seeing a squeeze on the profit margins of our processors, it is of critical importance for companies to see where they can increase income, increase efficiency and cut costs.
“By embracing the opportunity to recover and sell fifth quarter products processors are gaining vital cash-flow from utilising the non-lean meat parts of the carcase. This is also saving the industry expensive disposal costs and assisting with sustainability targets.”
Alan Craig, President of the Scottish Association of Meat Wholesalers, commented: “The timing of this work could not have been better, coinciding with a period of negative returns for the meat sector when our markets have been running at extremely low levels. This is therefore a valuable response from QMS to requests from our Association for technical assistance in rebuilding non-carcase markets, both domestic and export.
“I also wish to pay tribute to our own Association members for their part in this development. Many businesses have made significant infrastructure investments in response to a slow, but valuable, uplift in global non-carcase prices, particularly for hides. As a result, the losses suffered in other parts of the industry in recent months have been cushioned to a certain extent. As such, this project highlights the importance of partnership working both with QMS and the Scottish Government. We would welcome further opportunities to explore other areas of growth in the future.”
Rural Affairs Cabinet Secretary, Richard Lochhead, said: “It is very rewarding to see that this support from the Scottish Government has played a part in giving processors the opportunity to realise millions of pounds of much-needed extra revenue.
“This project also shows our commitment to enabling businesses to cut waste. Maximising the full economic value of carcases makes sense on all levels – it generates additional income and reduces waste, thereby helping to deliver our goal of a sustainable future for the Scottish red meat industry.”
The serious decline in livestock supplies to the Scottish meat sector has been given added weight by the release of new survey details by Quality Meat Scotland (QMS).
Independent analysis by QMS, undertaken in response to requests by the Scottish Association of Meat Wholesalers (SAMW), seeking an accurate and independent assessment of livestock supplies, has revealed a 9% decline in the Scottish suckler herd during the five years to December 2009. The QMS work bears out what SAMW has been saying for the last two years.
Red meat processing has traditionally been a low margin, high volume industry, needing suitably high volumes of livestock going through abattoirs. SAMW has warned for a long time that the decline in livestock production, brought about by the reform of the CAP in 2004, is threatening the security of one of Scotland’s major industries. In light of the QMS findings, the Association has warned that Scotland Food and Drink’s target of increasing Scottish food and drink production to £17 billion is in jeopardy.
Survey findings:
Commenting on the survey, Alan Craig, SAMW President, said: “This is a very valuable piece of work by QMS. It provides the evidence to back up what we have been saying for more than two years. We have pleaded our case to the Scottish Government, to the CAP Health Check, to the Brian Pack Review, as well as to Brussels through the European Meat and Livestock traders’ Union (UECBV), all so far without an adequate response.
“Whatever the outcome of the CAP process both pre and post 2013, there is no doubt that production incentives are vital to underpin Scotland’s reputation as a serious country of quality meat production in both home and export markets.”
T: 07768 654955 E: scott.walker@scconsultancy.uk
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