T. 07768 654955 E. scott.walker@scconsultancy.uk
Tackling the stagnation of Scottish farm productivity needs prompt action, not more words or further industry analysis, says the Scottish Association of Meat Wholesalers (SAMW).
“The Royal Highland Show has often been the launch-pad for new farming initiatives but this week’s event needs instead to be a dynamic launch-pad for decisive and positive action,” said SAMW President, Frank Clark.
“The recently published agricultural champions report, commissioned by the Scottish Government, said it all in terms of where we currently are as an industry and where we need to get to over the next five to 10 years to secure a sustainable and profitable future for all parts of the supply chain. It also acknowledged that we’ve had too many reports in the past which have contained excellent recommendations but which haven’t always been actioned. As we hurtle towards an uncertain post-Brexit world we simply can’t afford to make the same mistakes again.”
SAMW has been calling for government action to arrest the decline in livestock numbers for a number of years but still with no sign of any sustained improvement in output.
“Thankfully, the ag-champs report hit this issue head-on, using the word ‘stagnation’ to describe the current state of Scottish farm productivity,” said Mr Clark. “It also called for a mind-set change across Scottish agriculture with future funding being targeted to produce results in a progressive, entrepreneurial and resilient manner.
“In addition, dealing specifically with farm output stagnation, the ag-champs said that future income support measures should include headage payments, where appropriate, alongside a major new focus on policies and schemes to support production efficiency. Cutting current levels of wastage due to avoidable animal diseases and production inefficiency was also rightly highlighted as areas which can and should improve.
“Another quote from the report, stated that ‘this time the Scottish Government, with potentially fewer restrictions on its actions in future, has the opportunity to take forward our recommendations and, working with the industry, make a real difference’.
“We could spend a lot more time discussing the details of all this, of course, including who might win and who might lose as a result. For once, however, let’s just get on with it.
“SAMW certainly agrees with that sentiment. We are at pivotal stage for our industry and Ministers and policy makers must grasp the nettle with both hands. As a result, the 2018 Royal Highland Show will hopefully go down in history as the turning point when Scottish livestock production started to grow again. However, if that doesn’t happen, and the stagnation of our flagship livestock sector is allowed go unchecked, we could be looking at the Ingliston showground hosting a much smaller gathering in future years.”
NFU Scotland yesterday met with the SAMW to discuss the need for stability and profitability for the Scottish livestock sector going forward.
The meeting followed the SAMW Annual Conference in April at which there was concern over declining livestock numbers in Scotland. With total abattoir throughput in overall decline in recent years, and continued challenges to farm and croft profitability, SAMW and NFUS believe there’s a clear need for the government to commit to industry in the long-term to ensure stability, given the continuing uncertainty over Brexit.
NFUS and SAMW agreed that the industry must work together to identify opportunities while continuing to promote the positive credentials of Scottish livestock production.
Speaking following the meeting, NFU Scotland President Andrew McCornick said: “It’s clear that all parts of the chain are concerned about the on-going uncertainty over the future of trade and government support. Despite the reasonable stability over the last decade we have seen livestock numbers falling as a general trend.
“Livestock production continues to bring significant economic benefits to the communities of rural Scotland and I believe should play a significant part in Scotland’s ambition of achieving £30 billion food and drink industry turnover by 2030. For this to happen we need to see Government work with industry to bolster Scottish production if we are to stop the decline in livestock numbers in lieu of greater imports from elsewhere.”
SAMW President Frank Clark said “While our members remain optimistic about the future and continue to invest heavily in both processing facilities and sales initiatives, recent trends show we need a step change in collaboration and support to reverse the continued decline in Scottish cattle numbers.
“We need the Scottish Government and its Agriculture Champions to explore new, innovative and forward-thinking proposals that will incentivise farmers to rebuild their herds, ensuring that production is no longer stuck in decline. Without such action, Scotland’s farmers and processors will find themselves facing an increasingly intense period of post-Brexit meat trade competition without the raw materials to either secure sales domestically or contest for business in the international marketplace.
“If we are to truly benefit from the premium nature of Scottish beef, we need to see an increased all-industry focus on production, fully supported by dedicated government resources.”
The urgent need for ‘Brexit Now’ certainty and a call for combined government and industry action to reverse the decline in livestock numbers were the dominant issues tackled by SAMW president, Frank Clark, during his address to the Association’s annual conference in Glasgow on Saturday, April 21, 2018.
Tell us NOW!
Responding to the conference theme of ‘Brexit Now’, the president told delegates that this industry was still waiting for clarity across a range of Brexit concerns, despite having been told by government during last year’s conference that everything would be much clearer by April 2018.
Frank Clark
“Well the truth is that we don’t know a lot more than we did then,” he said, before delivering a list of Brexit Now requirements which are becoming increasingly urgent for SAMW members.
“We need to know NOW where we’re going to end up the day after March 29, 2019,” he said.
“We need to know NOW what’s going to happen during the 21 months of transition that will follow the UK’s midnight exit point from the EU on that day.
“We need to know NOW what the months and years following December 31, 2020, will offer us as business owners, managers, regulators and product promoters.
“Frankly, we’ve heard and seen a lot about ‘Brexit tomorrow’ over the last two years and quite a bit about ‘Brexit sometime in the future’ but not much about the here and NOW, which is where our businesses are based and where we all earn our living.
“For some business sectors, 12 more months of talking followed by 21 months of transition will sound okay. For everyone involved in the production of red meat, however, it’s hardly enough to cover the production cycle of our raw material and it definitely doesn’t accommodate the planning and investment process which lies behind the farm-to-plate timescale of the industry on which we all depend.
“That’s why we need better Brexit answers than we’ve been given to date, more far-reaching solutions than we’re heard from the politicians siting in Edinburgh, London and Brussels and genuine evidence that those in charge of the whole process understand that March 29, 2019 and December 31, 2020 are starting points not end points.”
Livestock decline warning
The president also highlighted member company worries over falling livestock numbers, warning that a lack of raw material supplies could easily derail the industry’s post-Brexit hopes and ambitions, irrespective of how good the final settlement and future trade deals may turn out to be.
“The continuing decline in livestock numbers in Scotland is having an increasingly crippling impact on our industry,” he said. “Numbers have fallen steadily throughout the past decade with the latest figures suggesting that 2018 will merely produce more of the same. We cannot let this damaging decline continue.”
Calling for a united response to the issue, involving farmers, all parts of the red meat chain and government, he acknowledged that farmers and processors alike would both like to earn more for their work, adding that enhanced government support and higher wholesale prices would translate into a healthier industry all round.
“In contrast, we hear that many influential voices within the UK government would like to spend less on direct farm support, arguing that we already follow free market principles and are set for more market-driven reality in 2021 and beyond,” he said.
“Well – the reality of livestock farming in Scotland is that the sector is not currently ready to face the unrelenting heat of international competition. Our farmers need a helping hand from Government to knock the sector into better shape.
“We appreciate that support has been made available throughout the past decades of CAP, we embraced Beef 2020 opportunities and had the benefit of all the various calf support scheme options, but nonetheless livestock number continue to drop year after year. It’s time for Government and all the stakeholder groups in Scotland to go back to the drawing board and devise a support package which will reverse this decline.
“If we’re going to get out of today’s livestock supply mess – and there’s no other word for it – we’re all going to have to get involved.
“Perhaps that means farmers becoming more efficient and effective at keeping the calves which are born, alive and productive, rather than accepting losses to disease and illness which could be avoided.
“Perhaps that means our part of the chain becoming more efficient and effective at what we do, with the retail end of the process committing a greater share of their profits to product purchases.
“Perhaps that means government finding the resources to properly fund the whole red meat supply chain in such a way that the post-Brexit export successes we’ve been promised become a government-driven reality rather than an industry-based responsibility.
“I’m optimistic about the future but it’s not going to be easy. Business growth for Scotland’s livestock and red meat chain won’t happen unless we have livestock to sell to all the new customers out there who are waiting for Scotch beef, lamb and pork.”
Ian Anderson (right), retiring after 10 years as Executive Manager of the Scottish Association of Meat Wholesalers, is presented with a memento of the Association’s appreciation by SAMW president Frank Clark.
A strong line-up of speakers will address SAMW’s annual conference in Glasgow on April 21, tackling the event’s core theme of Brexit Now.
“Almost two years on from the EU referendum, it’s time to take stock of developments and consider the implications for the red meat processing sector,” said SAMW president, Frank Clark.
“Key ‘Brexit Now’ issues include the supply of livestock, the availability of labour and trade and market opportunities beyond 2019, all of which will be addressed during our annual conference programme.”
Keynote address:
• Lord Ian Duncan, Under-Secretary of State for Scotland, Scotland Office.
Other speakers:
• Peter Hardwick, Director of Exports at the Agriculture and Horticulture Development Board
• Richard Brown, Director of Gira global market research consultancy
• Lucy Chapman, Consumer Insight Director of Kantar Worldpanel.
Full conference and dinner dance details:
Date – Saturday, April 21, 2018
Venue – Marriott Hotel, 500 Argyle Street, Glasgow
Conference times:
9.45 – coffee
10.15 – Conference opening by SAMW president
13.00 – Lunch
Dinner & Dance
19.00 start
Seven new sponsors will be involved in this year’s annual SAMW conference and dinner in Glasgow on April 21, alongside 14 companies who have given valued support to the association over many years.
The newcomers are: University of Bristol Vet School, Dalziel Group, Levy & McRae, Margaret Hodge Recruitment, Merit Projects, Robert Burns and UV- Safe.
The long-termers are: BDA Plus, Primestaff, CRT Packaging, Acoura, McLaren Packaging, NCH Biohygenic, Meatsnacks Group, Systems Integration, Century Installations, Omega Proteins, Dundas Chemical Co., Quality Meat Scotland, Marshall Farmer and Sealed Air.
“These 21 companies and organisations add greatly to the commercial value and importance of our annual conference,” said SAMW president, Frank Clark. “We’re grateful for their commitment to our industry and the services they provide.
“It’s obviously pleasing to have seven new names on the sponsors list this year but equally satisfying to once again welcome our long-term supporters to the Association’s annual flagship occasion.”
Scotland’s red meat industry mantra heading into 2018 is ‘livestock, livestock, livestock’ a simple and direct request which has hinted at being met in recent years but remains frustratingly out of reach as the old year comes to an end and a new one begins.
“Just as house buyers are encouraged to think ‘location, location, location’ when considering a new investment, our members see a sustained and reliable upturn in livestock numbers as the number one requirement for the future success of Scotland’s red meat industry,” said Frank Clark, President, Scottish Association of Meat Wholesalers.
Frank Clark
“The fact that an increase in livestock numbers is also our second and third most important 2018 requirement, puts everything else our industry will face next year into its proper context, including Brexit.
“We would obviously welcome a good red meat deal on Brexit, ideally agreed in 2018; alongside a reduction in red tape; a more collaborative approach from the regulatory authorities and a few other things as well. For most of our members, however, the over-whelming need for a stronger supply of Scottish livestock is the issue which overhangs red meat business planning and investment decisions as never before.
“While Brexit continues to dominate the business and political landscape, generating questions over future trading routes, tariffs and market access, it’s the persistent and damaging shortfall in domestic livestock supplies which is actually posing the biggest threat to the future of Scotland’s red meat industry.
“We’ve said all along that with the right settlement deal Brexit could deliver new opportunities for red meat exports from Scotland and this is still our position today.
“The negotiations in London and Brussels continue to progress slowly, but are now starting to yield a few hints of encouragement, not least the agreement reached over the secured status of EU nationals currently working in the UK. This includes many valued employees on which SAMW member companies rely. Our post-Brexit requirement for sustained access to EU workers also needs to be addressed, of course, and we will keep arguing that case. Nevertheless, we do seem to be moving in the right direction on this issue.
“Ultimately, however, our greatest business strength lies in the fact that our end product is as superb as ever with a great global reputation and definite scope for growth. Sadly, securing new markets in the post-Brexit era won’t be possible, irrespective of the agreed exit terms, unless we also have an increased supply of necessary raw materials on which to stamp our renowned Scotch brand. Imagine the frustration for our members if we actually get a good final deal with Brussels and then have nothing to sell on the back of it.
“Turning today’s livestock production decline around is going to take serious government involvement, starting with more political energy being put behind the country’s beef efficiency scheme, alongside a significantly enhanced approach to the introduction and use of additional production incentives.
“Farmers currently have CAP support as part of their income flow, of course, with much being made of what the industry might lose in funding terms after the end of post-Brexit transition.
“While we understand why such warnings are being issued, the challenge from SAMW is for both the UK and Scottish governments to also view March 29, 2019, as their opportunity to do even more to stimulate production. It’s time to start making sure the post-Brexit positives outweigh the negatives.
“As a business sector we secured good progress in 2017, headlined by Scotland gaining BSE negligible risk status in July 2017, the lowest risk level rating available.
“We also secured a 9% growth in beef export values, alongside a 4% increase in export volumes, both excellent figures in the midst of a volatile year for the national economy.
“We know we can do more, however, both despite Brexit and because of Brexit. Challenge and opportunity always come together and we’re ready for both. We just need sufficient raw materials to work with and for the government to create a positive structure going forward.”
Three charities have shared gift support totalling £9,000 from the Scottish Association of Meat Wholesalers, drawing on funds raised during a charity auction at the Association’s 2017 conference and dinner, held in Glasgow.
“It’s always a privilege to be able to distribute the generous contributions made by association members and guests to such deserving causes,” said SAMW president, Frank Clark. “This year’s charities, specially chosen by individual members of our executive committee, are each fulfilling a vital role in their selected fields and we’re delighted to be able to play a small part in assisting them.”
l-r: Craig Stockton, CEO of MND Scotland; Karen MacFarlane of Kidney Kids Scotland; Frank Clark, SAMW president; Chris Paterson of Combat Stress, and Ian Anderson, SAMW Executive Manager
This year’s charities are:
MND Scotland (£3,000)
MND Scotland is the only charity in Scotland supporting people affected by Motor Neurone Disease, as well as funding vital research to find a cure.
“Currently just 450 in Scotland suffer from MND, which is good in the sense that the number isn’t higher,” said Craig Stockton, CEO of MND Scotland. “Because the number is small, however, we have to work very hard to promote research into improved treatments and solutions to MND which remains a devastating condition for those who are affected by it.
“The money we’ve received from SAMW, for which we’re very grateful, will go towards helping fund a new physio-therapy service which will help sufferers keep mobile and maintain movement far longer than would otherwise be possible.”
Kidney Kids Scotland (£3,000)
Kidney Kids Scotland was founded in 2000 to help children with renal illness and their families, ensuring those affected are fully supported when they most need it. Families come from all over Scotland.
“Chronic renal failure is a rare condition but when it occurs there is no cure for it,” said Karen MacFarlane of Kidney Kids Scotland. “The treatment route in such cases is either dialysis or a transplant.
“We fund equipment and staff salaries as part of our work but our main commitment is to families and supporting them direct. To do that we rely of gifts such as the one we’ve received from SAMW, for which we’d like to say a huge thank you.”
Combat Stress (£3,000)
Combat Stress meets the needs of former servicemen and women, many of whom seek help for mental health issues as they readjust to life after being in the armed forces.
“We are so grateful to the SAMW for this donation of £3,000 to Combat Stress,” said the charity’s Robert Marsh, director, income generation. “Demand for our services continues to grow. Over the past five years we have seen an average of more than 2,000 referrals each year. It is important that we raise awareness and funds for the charity to ensure we can support every veteran that comes to us for help.
“Thank you to SAMW for choosing to support Combat Stress and veterans with mental health problems.”
T: 07768 654955 E: scott.walker@scconsultancy.uk
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