The ongoing resilience and economic importance of the red meat sector to rural Scotland was highlighted at Quality Meat Scotland’s (QMS) presentation to stakeholders across the supply chain at Turriff Show today, 5 August 2024, following the release of its Red Meat Industry Profile report.
The report also highlights significant opportunities for the £2.8 billion Scottish red meat sector to increase further its contribution to Scotland’s economy and food security across the UK.
In 2023, turnover from red meat processing in Scotland was estimated to have risen for a fourth consecutive year, lifting 1% to £975 million.
Despite cost-of-living challenges, people in Scotland spent around 8% more on red meat in 2023, mainly on more affordable cuts.
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Addressing attendees from across the red meat supply chain, QMS Chair Kate Rowell emphasised the North East’s significant role in Scotland’s agricultural output.
“Aberdeenshire is the main destination for store cattle for finishing in Scotland, with around 32% of male cattle aged between one and two reported in June 2023.
“It accounted for around one-third of Scotland’s abattoir production in 2023, 63% of the breeding sows, and 11% of the lamb crop,” Rowell noted.
Rowell also highlighted the strong demand for beef in Scotland, with 86% of households buying beef compared to 83% in Great Britain.
However, this demand is challenged by a 2.5% year-on-year reduction in the suckler herd, a trend that must be addressed.
QMS’s Market Intelligence Manager, Iain Macdonald, expressed concerns about the declining beef herd and a 2.7% fall in calf registrations, which will impact prime beef output by 2025.
“Action to stabilise the beef breeding herd, boost productivity, and reduce the outflow of store cattle is needed to reverse the decline and support recovery,” he said, noting that this could support an extra £73.6 million of output and £16.9 million of GVA by 2030.
In spring 2023, hogg prices reached record levels in the sheep sector, and lamb prices spiked around Easter and Ramadan due to strong demand and lower supply.
Despite increased lamb imports from Australia and New Zealand, UK export demand remained strong due to a declining EU sheep flock.
Scotland’s pig sector recovered from the 2021/22 financial crisis.
“Farmgate pig prices remained at record levels following a rebalancing in 2022, while input costs fell back from their peak, supporting increased margins,” Macdonald explained.
Moreover, the pig herd stabilised rather than rebounded, and exports slumped due to limited supply. Macdonald concluded by acknowledging the challenges faced by the red meat supply chain in 2023, including elevated input costs and labour issues.
Macdonald added: “The positives are that red meat processing sales continued to increase and that people in Scotland spent more on red meat despite a cost-of-living crisis.”
Looking forward, McDonald’s stressed the importance of transforming beef production to harness its full economic potential and for continued investment in the sheep and pig sectors to support Scotland’s rural economy and food security.
Quality Meat Scotland remains dedicated to promoting and supporting the red meat sector, ensuring its continued contribution to the Scottish economy and rural communities.
