The strength and development of Scotland’s meat industry is delicately poised as we approach 2014, according to the Scottish Association of Meat Wholesalers.
“The potential for growth and development for our industry is enormous, with strong export opportunities emerging on a regular basis,” said Alan McNaughton, SAMW president.
“However, extremely tight livestock supplies and a sharp rise in cattle prices in recent months are having a limiting effect on business development, with the likelihood that similar pressures will carry over into next year.
“There have been many points of progress in the past year but in almost every instance each new gain or opportunity has been accompanied by a risk or a threat which could prevent our industry from fulfilling its potential.”
He said, securing Scottish Government agreement to an 8% coupled payment for beef calves through CAP reform, up from the previous 4.5%, was a 2013 highlight achievement.
“Unless the rest of the CAP package delivers what productive farmers need to commit to beef long term, however, we could still see the new coupled payment advantage being swept away in 2014,” said Mr McNaughton.
“The whole industry is delicately balanced at present, therefore, with the potential for real advances to be made on one hand, or for producers, on the other, to decide that their combined package of CAP payments doesn’t add up to enough to take them forward.
“A negative response on this would be a massive disappointment, given the growth of export opportunities which are now available to Scotland’s meat sector.
“Everything depends, however, on getting sufficient livestock to supply traditional home market outlets, which have long been our industry’s bread and butter, as well as meeting new export opportunities.”
According to the meat wholesalers, what is already clear is that the current supply/demand/price pattern cannot continue much longer without causing serious damage to the industry.
Cattle prices have risen by 15% since the beginning of the year while market returns have increased by just 7%: “There is no way these two figures add up,” said Mr McNaughton.
Turning to other positive/negative developments in 2013, Mr McNaughton took aim at continuing concerns regarding bureaucracy and red tape.
“There’s no doubt we’ve made progress on these factors this year but there still seems to be a mountain to climb in relation to far too many points,” he said.