Meat supply chain buckles down for a bumpy ride
2022 and beyond will go down as being among the most challenging periods for Scotland’s red meat sector since the industry faced the foot-and-mouth outbreaks of 2001 and 2007 and the emergence of BSE in the 1980s.
“Rising costs, continuing labour shortages and the challenge to hit net zero targets, head a hit list of pressures for farmers, processors and retailers to address over the coming months,” said Ian Bentley, newly elected president of the Scottish Association of Meat Wholesalers (SAMW).
“There is also much to celebrate, of course, not least the quality and provenance of Scotland’s iconic red meat. However, we cannot ignore the spiralling operational costs, energy hikes, and supplies crisis facing all parts of the industry at present.
“SAMW member companies have been battling to maintain staffing levels for at least the past 18 months, if not longer, with no sign of an easing in pressures in this area. This has inevitably raised labour costs, leading to depressed processing margins which has been exacerbated by the energy cost surge of recent months. I know many others are in the same place, including farmers, but that doesn’t change our sector’s bottom-line returns,” said Mr Bentley.
Gordon Davidson / Scottish Farmer
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