T. 07768 654955 E. scott.walker@scconsultancy.uk
The need for ‘real money’ to be invested by government in the revival of cattle numbers in Scotland was one of the dominant issues tackled by SAMW president, Andy McGowan, during his address to Association’s annual conference in Glasgow on Saturday, April 27, 2019
Restoring livestock numbers
“Top priority must be given to restoring livestock numbers to past levels,” the president told members and guests, including Fergus Ewing, the Scottish Government’s Cabinet Secretary for the Rural Economy.
“We’ve been stuck on a downward production spiral for the last 10 years and cannot – must not – allow that to merely kick over into 2020 and beyond.
Andy McGowan
“As someone whose day job is in Scotland’s pig industry, I am encouraged by the 15% growth recorded last year in the country’s pig breeding herd. Much of that growth was due to support from Government that ensured the right processing and marketing structures were put in place to encourage pig farmers to produce better quality stock – and in greater volumes. This was all done with commercial results firmly in our sights, backed by great support from this Government. This deserves our recognition and thanks.
“We desperately need a similar degree of imagination and commitment from government and industry in relation to cattle and sheep production volumes. We’ve had initiatives in the past which have looked promising at the time, such as the Calf Support and Beef Efficiency Schemes, but the reality is that these schemes have proved to be ineffective in reversing Scotland’s falling stock numbers.
“What we need now is for real money to be invested in the revival of cattle production in Scotland and I don’t think we should be ashamed as farmers and processors of asking for a big investment from government to realise our undoubted potential. Investments made now will pay dividends in the years to come.
“A lot is made of the £30 billion industry turnover value set by Scotland Food & Drink as the nation’s target for 2030, but that’s not going to happen without a fair amount of government and commercial investment along the way.
“We need our share of that investment if Scotland’s red meat industry is to play a full part in helping to deliver this lofty ambition.
“Before leaving this point, just a word of support for the Food Processing and Marketing Grants Scheme, which has been well used and appreciated by many SAMW member companies, large and small. I know, of course, that the official line from government is that we’ve seen the last round of awards under this scheme.
“If that’s true, then we will need an even better successor scheme to be developed and launched as soon as possible to enable this sector to continue to invest in processing capacity, equipping us to compete in today’s highly competitive international meat market.”
The pressing need for certainty, collaboration and respect top the 2019 wish list for Scotland’s red meat industry says the Scottish Association of Meat Wholesalers (SAMW).
“It’s now two-and-a-half years on from the-Brexit referendum yet our industry is still in urgent need of clarity as we head into the New Year,” said SAMW President, Frank Clark, speaking on behalf of member businesses whose commitment to the country’s red meat sector underpins trading activities worth £2 billion and the direct employment of 3000 workers.
“Our industry desperately needs a return to political and business certainty, a requirement we share, of course, with all the other sectors of the Scottish economy. However, with such clarity currently seeming to be as far away as ever, 2019 looks set to be another extremely challenging year.
“Thankfully, the fundamentals of our industry remain as solid and reliable as ever. They just need to be given the necessary freedom and support to generate meaningful commercial returns, which will also benefit the rural Scottish economy.
“The basic facts are simple enough. Member businesses source high quality beef, lamb and pork from many excellent Scottish farms, run according to the highest possible levels of traditional breeding and finishing standards, with livestock managed in line with the high health and welfare requirement laid down in Quality Meat Scotland’s world leading assurance standards. This is a production and processing supply chain of which we can all be proud.
“Once processed and packaged, our industry’s products are promoted and marketed strongly within Scotland, sold throughout the rest of the UK and exported around the world. This is also a sales chain and global reputation of which was can all be proud.
“Scottish red meat definitely punches above its weight in all these markets and our desire for 2019 is to be given the platform and freedom to build on this success by extending our reach into new markets at home and abroad.
“While the delivery of future political and business clarity ultimately rests with the politicians in Holyrood, Westminster and Brussels, it is encouraging to note that collaboration between the different parts of Scotland’s red meat supply chain has strengthened over the past 12 months. Joint action, for example, has taken place this year that supports the industry’s long-running ambition for an increase in livestock numbers, most recently in relation to clearing the way for more quality beef for be drawn from the Scottish dairy herd.
“In addition, other joint initiatives are in the pipeline for action in 2019, all designed to make Scotland’s red meat sector stronger and fitter for the future, when the political clouds finally clear and we have a sure way forward for our industry and the broader rural economy.
“Another hope for 2019 is that we will see more respect and recognition given to the producers and businesses whose every day efforts have built Scotland’s red meat industry’s status into the global standing that we now enjoy.
“Regrettably the past year has seen a noticeable rise in the amount of attention given to the anti-meat lobby groups, with the quality of our products and the honest commitment of ordinary hard working farmers and processors often being unfairly portrayed. Everyone has a right to make their own lifestyle choices, of course, including whether or not to eat meat. But what irks us as an industry is when anti-meat lobbyists put forward arguments and so called facts which do not have any independent evidence to underpin their claims.
“That is why we as an industry appreciate and applaud the good work done by Quality Meat Scotland and others who apply sound scientific facts and figures to counter these unfair attacks on our industry. I repeat, we have an industry of which we can all be proud and one which has a strong future.”
Mike will be greatly missed by everyone who knew and worked with him throughout his many years as a deeply committed and loyal member of the Scottish Association of Meat Wholesalers.
One of the founding fathers of the association, his long-standing involvement in our executive board was appreciated by all the presidents he served, each of whom knew they could always count on his support and his wise counsel whenever a difficult or challenging issue arose.
A strong advocate of the quality and integrity of Scotland’s red meat industry, Mike rarely involved himself in the politics of our industry, preferring instead to concentrate on producing a top class product for his customers.
For many years, he was also the reliable supplier of simply the very best beef for our annual conference dinner, a role which we all enjoyed to the full.
He was, in short, a true gentleman of the highest order.
Scottish red meat and dairy interests are committed to maximising the potential for beef production from the dairy herd in Scotland. Looking at the opportunities and challenges ahead for the beef sector in Scotland, stakeholders are keen to develop the role that dairy cross beef can play.
NFU Scotland facilitated a recent meeting to consider how the beef sector can fully utilise the potential of the dairy sector. It involved contributions from Scottish Government officials, the Agricultural and Horticultural Development Board (AHDB); Quality Meat Scotland (QMS), the Scottish Agricultural Organisation Society (SAOS), the Scottish Association of Meat Wholesalers (SAMW), beef processors Scotbeef and ABP, the Scottish Dairy Hub and SRUC, demonstrating the importance of collaboration.
The key message was that all are committed to working together to increase the quality and quantity of cattle from both the dairy and beef herds that are being presented for processing in Scotland.
Beef production and processing in Scotland faces challenges including, first and foremost, levels of profitability that are, at best, marginal. That has seen a decline in overall beef production and processing capacity and risks to critical mass.
All parties agreed that, with the UK only 75 percent self-sufficient in beef, the opportunities are there for both import substitution as well as increasing exports. That is feasible given the strength of the Scottish brand, backed by the work and reputation of farmers, processors and QMS.
Speaking after the meeting, NFU Scotland Vice President Gary Mitchell said: “The key focus of this meeting was to assess the potential for increased production of quality of beef from the dairy sector to complement beef from the suckler sector.
“There was agreement that dairy has the potential to provide significant numbers of beef bred animals for beef production if the breeding and systems on dairy farms can deliver the right product to rearers, finishers, and processors, while meeting the needs of the final customers.
“The group agreed there is merit in exploring existing supply chain initiatives; assessing the potential in Scotland to develop pilot schemes; assessing breeding, feeding and management systems; considering the potential to develop calf rearing systems with professional expertise and initiatives to streamline efficiency and collaboration.
“The encouraging aspect of this meeting was the acceptance by all, including Scottish Government, that beef production is an iconic sector in Scotland, and that collaboration from all players could build on the important contribution made by beef from our dairy herd.”
Gift support totalling £12,000 has been presented by the Scottish Association of Meat Wholesalers to four charities, drawing on the proceeds of a fund-raising auction at the Association’s 2018 conference and dinner, held in Glasgow.
“Thanks to the generous contributions made by association members and guests, we’re delighted to once again be able to support these important charities,” said SAMW president, Frank Clark.
The four charities to receive SAMW support this year are RSABI (Royal Scottish Agricultural Benevolent Institution), UK Sepsis Trust, Teenage Cancer Trust and Saving Sight in Grampian.
SAMW’s presentation to the charities supported in 2018 featured (l-r): Michael Hastie, Sight Savers Grampian; Vanessa Todd, Teenage Cancer Trust; Martin Morgan, SAMW executive manager; Frank Clark, SAMW president; Emma Low, UK Sepsis Trust, and Margo Wills, RSABI.
RSABI (£3,000)
RSABI is a unique Scottish charity providing emotional, practical and financial support to individuals and their families across the agricultural sector including farming, crofting and growing.
“We support many hundreds of people in Scottish agriculture who are struggling to cope, at an annual cost to RSABI of around £500,000,” said RSABI’s development manager, Paul Tinson. “With no sign of a decrease in demand for our services, donations remain vitally important to allow us to keep delivering.
“RSABI has a confidential helpline (0300 111 4166) operating 7am – 11pm every day of the year. Callers should not wait for a problem to become a crisis, with support available for a wide range of issues such as money worries, illness, anxiety, stress, fuel poverty and mental wellbeing.”
The UK Sepsis Trust (£3000)
The UK Sepsis Trust was founded in 2012 with the aim of ending preventable deaths from sepsis and improve outcomes for sepsis survivors. Sepsis, also known as blood poisoning, is the immune system’s overreaction to an infection or injury. It’s the third biggest killer in the UK, affecting 250,000 people every year, of which 44,000 lose their lives and 60,000 suffer permanent, life-changing after-effects.
“The money received from SAMW will go towards our ‘Streets Against Sepsis’ campaign, which aims to raise awareness and vital funds within communities by encouraging and supporting community action,” said the charity’s communications manager, Isabella Wilson. “We want everyone to learn the signs of sepsis so they can look out for their friends, families and colleagues and ‘Just Ask: Could it be sepsis?’ Together we can change the way sepsis is handled in the UK.”
Teenage Cancer Trust (£3000)
Teenage Cancer Trust, which exists to make sure young people don’t face cancer alone, provides world-class cancer care and support in specialist units, local hospitals and in homes across Scotland and the UK. The charity is involved at every stage, from diagnosis through treatment and after treatment.
“Every day seven young people aged 13-24 are diagnosed with cancer,” said the charity’s regional fundraiser, Vanessa Todd. “We see the young person first and the cancer patient second.
“SAMW’s donation will help as we need funding to grow our team of Clinical Nurse Specialists across Scotland, who can treat young people at local hospitals and in their own homes. Clinical Nurse Specialists will also provide support, education and development opportunities for NHS staff at local hospitals to raise awareness of the complex needs of this age group. In 2018, we are expanding our team to include four new Clinical Nurse Specialists based in Aberdeen, Dundee, Inverness and Edinburgh, who will work across their wider local area.”
https://www.teenagecancertrust.org/
Saving Sight in Grampian (£3000)
Saving Sight in Grampian (SSIG) was founded by the late Dr Iain Fraser in 1989 in grateful response to the treatment he received following a severe eye condition. The charity, which has already raised over £3.5m, is currently working to raise another £1.5m to further capitalise on the world-wide reputation of the Aberdeen-based SSIG research laboratory.
“The sums being raised will be directed to the recruitment and employment of additional people to enhance and expand the capabilities of our existing team,” said SSIG chairman, Michael Hastie.
“Future research will focus on inflammation and infection in conditions which could cause, or identify, the early the symptoms of Parkinson’s disease and Alzheimer’s, amongst others. SAMW’s donation will be well directed in support of this work.”
SAMW is now an official business supporter of RSABI (Royal Scottish Agricultural Benevolent Institution). Thank you to SAMW members for their generous giving.
Beef farming sector writes to Cabinet Secretary
Scottish beef industry representatives have written jointly to Scotland’s Cabinet Secretary for Rural Economy Fergus Ewing raising their concerns about the prospects for the Scottish suckler beef herd.
Considering the reduction in cattle numbers over the last decade and more, NFU Scotland, the Scottish Beef Association (SBA) and the Scottish Association of Meat Wholesalers (SAMW) met in Stirling last week to discuss the issue.
The number of finished cattle passing through Scottish abattoirs has declined from more than 520,000 cattle in 2005 to under 400,000 in 2017, as part of what has been a long-term trend. The major factor in this reduction has been the challenge of profitability impacting the on-going viability of beef production.
Speaking after the meeting, NFU Scotland Livestock Committee chairman Charlie Adam, a beef producer from Aberdeenshire, said: “All three organisations welcome that the Scottish Government has now produced its post-Brexit proposals in the form of the ‘Stability and Simplicity’ consultation. Importantly, that allows for a rural funding transition period and we will submit our full responses in due course.
“However, greater returns from the marketplace for beef in the future will be limited due to the fierce competitiveness of the food retail market. Our reputation for quality and our PGI status will play a vital role in leveraging the necessary premium for Scotch Beef over our competitors, but despite that premium being in place for many years, the beef sector has still seen a substantial decline in numbers.
“Therefore, with limited market returns, it is vital that any future support for the sector is developed in a way which enhances production levels of iconic Scotch beef.
“The existing Scottish Suckler Beef Support Scheme (SSBSS) has been a positive driver of on-farm productivity, encouraging some farmers to invest in the production of profitable stock. However, it has at best only slowed down the decline in stock numbers rather than achieve its policy aims to stabilise beef cow numbers and then return the size of the national herd back to historical levels.
SBA President, Neil McCorkindale added: “Many livestock farmers and crofters are managing to maintain stock numbers only by squeezing the life out of existing assets, leaving them unable to make much needed investment in new machinery, equipment and facilities. This situation has led to levels of inertia in the sector that discourage young people, and which stands in the way of production and progress.
“While the Beef Efficiency Scheme has been another avenue to deliver support to the sector, in its current form this scheme has been perceived by many producers as impractical and overly-burdensome which has restricted its potential to initiate meaningful and lasting changes on-farm. We therefore hope that the Scottish Government can commit to simplicity when developing similar future support mechanisms to make them more user friendly, attractive and, most importantly, enabling all livestock farmers to achieve productivity benefits.
SAMW President Frank Clark said: “It is obvious from discussion with farming bodies that production-driven support is needed in the immediate future to arrest the decline in cattle numbers, hopefully reversing the present downward trend into growth.
“While our members are currently investing in their plants and have additional future investments in mind to ensure processing facilities in Scotland remain of the highest standard, we need an increase in raw material supplies going forward. Otherwise, we will not be able to capitalise as an industry on future sales opportunities.”
T: 07768 654955 E: scott.walker@scconsultancy.uk
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