Scotland’s red meat and offal exports beyond the UK have experienced a significant rise, reaching a value of £137 million, according to the latest survey by Quality Meat Scotland (QMS). The report highlights a remarkable recovery in the sector, with a 26% increase in export value compared to previous years.

Beef exports played a crucial role in this growth, contributing 67% of the total value. Lamb and pig meat also added substantially, while offal exports showed strong performance, further boosting the overall figures.

Sarah Millar, Chief Executive of QMS, welcomed the findings, describing the surge as a testament to the hard work and resilience of Scotland’s red meat industry in navigating challenges such as Brexit, fluctuating market conditions, and rising costs. She emphasized that this increase demonstrates the enduring demand for Scotland’s high-quality, sustainably produced meat in international markets.

Europe remains the largest export destination for Scottish red meat, accounting for the majority of the trade, though significant growth was observed in exports to Asian and Middle Eastern markets.

The QMS report underlines the vital role of exports in supporting the Scottish economy, particularly rural communities. With red meat and offal exports outside the UK contributing significantly to the sector’s £2 billion turnover, the figures serve as an encouraging sign for the future of Scotland’s farming and food industry.

QMS continues to support the sector through initiatives aimed at improving sustainability, animal welfare, and traceability, all of which are key drivers behind Scotland’s growing reputation in global markets. As demand for premium Scottish meat increases, the focus will now turn to expanding existing markets and exploring new trade opportunities outside the EU.

The UK Government has revealed two more delays in its post-Brexit border control plans, further extending the timeline for the full introduction of checks on goods arriving from the European Union. This marks the latest in a series of postponements since the UK’s departure from the EU in 2020, sparking concerns over continued uncertainty for businesses.

The first delay affects the implementation of full sanitary and phytosanitary (SPS) checks on food and agricultural products, which were due to be introduced at the beginning of 2024. The government now plans to phase in these checks later in the year, citing the need for businesses to have more time to adapt to new processes and certification requirements.

The second delay involves customs declarations and safety/security checks on goods arriving from the EU, originally scheduled for mid-2024. These will now be rolled out incrementally, with no firm end date provided by officials. The government has explained that this phased approach is designed to minimise disruptions, particularly during a period of economic volatility and ahead of the crucial Christmas trading season.

Trade bodies have expressed frustration at the ongoing uncertainty, highlighting the potential strain on supply chains and increased costs for businesses. “These continued delays are creating confusion for companies, especially small businesses, which are struggling to plan effectively for the future,” said a spokesperson for the British Chambers of Commerce.

Meanwhile, the food industry has voiced concern over how the further delays to SPS checks could impact UK producers. “The imbalance created by the EU already implementing full border controls while the UK continues to postpone its checks is putting British food producers at a disadvantage,” said an industry expert.

Despite the criticism, the government insists that its priority is to ensure that systems are fully functional before the new measures are introduced. A government spokesperson said: “We remain committed to delivering a strong, effective border regime that works for businesses and consumers alike. However, it is essential that we get this right, and that means taking the necessary time to ensure all parties are prepared.”

As the UK navigates its post-Brexit trade arrangements, the repeated delays to border checks have added another layer of complexity for businesses already facing challenges from inflation, rising costs, and global supply chain pressures.

Earlier this week, MLA released the 2024 State of the Industry Report, a catch-all document on the economic importance of the Australian red meat sector and how we stack up against our global counterparts.

The report uses calendar and financial year data from 2023 to cover industry turnover, value add, number of businesses, employment and a detailed breakdown of the performance landscape of the beef, sheepmeat and goat sectors.

The value of red meat and livestock exports rose 3% to $18.2 billion in 2022–23.

In 2023, Australia was the second-largest beef exporter and the world’s largest sheepmeat and goatmeat exporter. Volumes of Australian beef and veal exports lifted 27% on 2022 totals. Sheepmeat exports were up 15%, creating the highest export figure on record, while goatmeat exports lifted an impressive 55%.

The United States (US) and China were both significant markets supporting exports during this period of high supply.

Goatmeat exports totalled 33,904 tonnes shipped weight (swt) in 2023, up 55% on the year prior. The US remains the largest destination for goatmeat, accounting for 42% of exports or 14,477 tonnes in 2023.

Australians are still some of the world’s largest beef consumers, ranked third behind Argentina and the US. Australia was also the largest sheepmeat consumer per capita in 2023, helped by the reduced retail price of red meat last year.

Over 400,000 people were employed through the sector, lifting last year alongside 76,999 red meat businesses, also up 3.2% on the previous year, indicating strength in the industry.

MLA

The Head of External Affairs for AIMS (Association of Independent Meat Suppliers), Dr Jason Aldiss, has expressed growing concerns over the Food Standards Agency’s (FSA) plans to raise charge rates for the meat industry.

“Inflationary pressures are affecting all sectors, yet the FSA’s decision to pass these costs directly onto the industry is both excessive and dangerous,” said Jason.

“The FSA’s highly expensive and ineffective Official Control delivery model is already causing significant harm, with the meat industry essentially footing the bill for the profits of private veterinary companies contracted by the FSA,” he continued. “The FSA’s gold-plated veterinary attendance requirements in slaughterhouses combined with the profit-making objectives of their delivery partners, have resulted in plants being both overstaffed and overcharged to the detriment ultimately of the consumer”.

“Furthermore, the FSA is deeply bureaucratic and inefficient, with multiple layers of management idling and administrative processes adding unnecessary costs.”

“The FSA charges are exorbitant compared to other EU regulators those putting the UK meat industry at a severe competitive disadvantage in both domestic and oversea markets”.

AIMS are now calling for a fundamental overhaul of the FSA’s charging mechanism, advocating for a headage-based system, which is globally recognised and used by most regulators. This shift would eliminate the need for any form of discounting overnight and streamline costs for industry operators. It is vital that the FSA moves towards a fairer, more efficient system that serves both the taxpayer and the industry.

“We must be clear: if the FSA removes the current discount structure without addressing the gross inefficiencies in its bloated bureaucracy, over half of Britain’s meat plants could face immediate closure. Such an outcome would directly undermine the UK’s food security, vibrant local communities, and economic growth – objectives that the Labour government has rightly prioritised to help navigate the ongoing financial crisis.”

“It is now up to the FSA to take stock and ensure it does not single-handedly destroy the foundations of the UK meat industry. Industry stakeholders must make their voices heard during the FSA’s Call for Evidence on meat charging, ahead of the Board’s discussion on 11th December 2024.”

AIMS

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Global poultry markets are poised for continued growth, with strong demand driving bullish forecasts, according to the latest quarterly report from Rabobank, which points to rising global consumption and constrained supply as key factors bolstering market optimism.

The report highlights a surge in consumer preference for poultry, particularly chicken, as a more affordable and versatile protein source. As inflation continues to strain household budgets worldwide, many are turning to chicken as an economical alternative to beef and pork.

While demand remains high, the global poultry industry is grappling with supply-side challenges. Many poultry-producing regions have been impacted by rising input costs, particularly for feed and energy. Rabobank notes that feed prices have surged due to unpredictable weather patterns affecting grain harvests and the geopolitical tensions that have disrupted supply chains. This, in turn, has pushed up production costs for poultry farmers.

Poultry’s cost-effectiveness compared to other meats has allowed the sector to remain resilient. “Even with these headwinds, poultry remains the most affordable protein option globally, which continues to underpin the bullish outlook,” said Nan-Dirk Mulder, Senior Analyst at Rabobank.

Strong Growth in Key Regions
Rabobank’s report identifies key regions where poultry markets are expected to experience the strongest growth. Asia, led by China and India, is forecasted to see substantial increases in consumption, driven by expanding middle classes and urbanisation.

Meanwhile, North American and European markets are experiencing solid demand, particularly in the retail and foodservice sectors, where chicken is increasingly featured as a primary protein.

Latin America, especially Brazil, is expected to benefit from growing export markets, as countries such as Saudi Arabia, Japan, and South Korea increase their imports to offset domestic production challenges.

Challenges Ahead
Despite the overall bullish outlook, Rabobank warns of potential risks ahead. Outbreaks of avian influenza remain a constant threat to supply chains, with several regions continuing to battle isolated cases. Moreover, the ongoing volatility in global grain markets could further elevate feed costs, squeezing profit margins for producers.

Sustainability and animal welfare concerns are also increasingly shaping consumer choices, with markets in Europe and North America placing greater emphasis on sourcing from producers that adhere to high welfare and environmental standards. “Balancing cost-efficiency with consumer expectations for sustainability will be key for poultry producers moving forward,” the report notes.

The report concludes that poultry will remain the fastest-growing protein segment globally, buoyed by strong demand, particularly in emerging markets. With continued investments in efficiency and sustainable production practices, the industry is well-positioned to navigate potential obstacles and capitalise on market growth in the coming years.

 

Quality Meat Scotland (QMS) has proudly launched its new marketing campaign, ‘When You Know, You Know’ developed with Edinburgh-based creative agency, Multiply.

It highlights to consumers that there is simply no match for the livestock born and reared in Scotland under the QMS whole of life, whole of supply chain quality assurance schemes.

Scotch Beef, Scotch Lamb, and Specially Selected Pork will take centre stage on television supported by outdoor, press, social media advertising and PR with messaging that is designed to educate consumers on the unique benefits of choosing quality assured red meat, taking them on a field to fork journey to fully understand the Scotch Difference.

Emma Heath, Director of Marketing at QMS, said: “The theme for the new campaign is to look behind the label and everything that Scotch stands for as this is ultimately at the heart of what we do and gives us a strong foundation to build on creatively over the coming years.

Our new campaign highlights that choosing Scotch Beef, Scotch Lamb, and Specially Selected Pork means opting for unmatched quality that comes from our world-class standards that were introduced around 30 years ago making them one of the first in the industry. We want to shine a spotlight on the tireless passion and expertise across the whole of the Scottish red meat supply chain.

“People want to feel confident in what they’re buying, and our campaign provides that peace of mind. Scotch Beef, Scotch Lamb, and Specially Selected Pork are more than labels— they represent trust, pride of provenance and perfection in taste. This campaign reinforces why there’s simply no substitute and where people have a choice, they understand the benefits of choosing Scotch.”

Graeme Clark, Creative Director at Multiply said: “It’s rare to get the chance to tell such an incredible and authentic story from start to finish. The experience of working on this campaign for Scotch Beef, Scotch Lamb and Specially Selected Pork has been nothing short of spectacular – the animals, people and environments we captured are stunning and so uniquely Scottish. The team at Multiply are immensely proud to have worked on this, and it stands out as a career highlight for me personally.”

QMS

QMS ‘Meat the Market’ Workshops for Farmers

Vion Food Group has successfully brokered a commercial agreement with Tönnies Group for the acquisition of the majority of Vion’s German beef operations.

This proposed transaction is a direct outcome of the German portfolio review initiated in January 2024 and signifies a strategic pivot towards focusing on the Benelux region. Subject to approval by the relevant competition authorities, alongside customary endorsements and closing conditions, the deal is anticipated to be finalised in 2025.

In the wake of a thorough review of its German portfolio, and following the divestments of the Landshut and Vilshofen facilities, Vion has further advanced its restructuring initiatives concerning its German assets, which encompass slaughtering, deboning, and by-products beef activities in southern Germany.

Under the terms of the proposed transaction, Tönnies Group is set to acquire Vion’s beef operations in Buchloe, Crailsheim (inclusive of pork activities), and Waldkraiburg. The acquisition also extends to the Hilden deboning facility, the hide processing plants of BestHides located in Memmingen and Eching-Weixerau, as well as the majority of Vion’s central support operations in Germany.

These South German beef operations are celebrated for their high-quality output and robust demand both domestically and on the international stage. The acquisition by Tönnies Group aims to ensure the continued prosperity and expansion of these vital activities, while preserving established supply chains and customer relationships.

Vion Food Group will maintain its stake in the Furth im Wald beef facility in South Germany. The remaining German entities under Vion’s umbrella will continue to receive full support, with all commercial relationships proceeding uninterrupted.

“This anticipated transaction marks a pivotal moment in Vion’s strategic realignment. We pledged to secure the most capable partners to guarantee a thriving future for the divested businesses, and simultaneously, we committed to increasing investments in our retained operations. Today, we take another step towards fulfilling these commitments. We are confident that Tönnies Group will deliver the necessary support and focus for sustained growth and success,” asserts Ronald Lotgerink, CEO of Vion.

Vion

Quality Meat Scotland (QMS) is delighted to announce a series of “Meat the Market” workshops designed to provide farmers with essential knowledge on carcass grading, market specifications, and customer requirements.

These workshops will take place at leading processing facilities across Scotland and will include processing plant tours, expert speakers, and hands-on sessions aimed at helping farmers improve the quality and profitability of their livestock.

The workshops will be held on the following dates:

• Tuesday, 17 September 2024 – Beef Workshop at Dunbia Highland Meats, Saltcoats, starting at 9:30am
• Tuesday, 15 October 2024 – Beef & Lamb Workshop at John M Munro Ltd, Dingwall, followed by a visit to Dingwall & Highland Marts Ltd starting at 10:00am
• Wednesday, 16 October 2024 – Lamb Workshop at Morrisons Woodhead Brothers, Turriff, starting at 8:30am
• Wednesday, 16 October 2024 – Beef Workshop at Morrisons Woodhead Brothers, Turriff, starting at 12:30pm

Farmers attending the workshops will have the opportunity to visually grade cattle and lambs before slaughter, then view the resulting carcasses for comparison. This hands-on experience will help participants better understand how their livestock is graded, allowing them to maximise their returns by meeting market demands. Attendees will receive expert guidance on market specifications, carcass presentation, and how to minimise the risk of carcass downgrades.

Speakers at the events include George Allan, Divisional Manager at Meat and Livestock Commercial Services Ltd (MLCSL), and Adrian Crowe, an industry specialist. Both experts will provide insights into market requirements and help farmers understand how to present animals that meet the needs of buyers.

Further workshops are planned for later in the year and will be announced soon, providing even more farmers across Scotland with the opportunity to gain invaluable knowledge and guidance on maximising livestock profitability.

For more information, please contact QMS at [email protected] or visit the QMS website.

QMS

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The latest report focuses on EU markets including Ireland, Germany, Poland, France and the Netherlands.

The reports, which are independently reviewed, evidence the current position regarding farmgate production standards at both a regulatory and voluntary level in England. This will help provide transparency for the English beef and lamb sector and the reputation that underpins it.

The report found that Red Tractor achieves a higher weighted average score than the other schemes assessed.

However, the Netherlands’ Beter Leven scored higher in husbandry procedures and youngstock management. It also matched Red Tractor for animal health and welfare.

Germany’s Quality System scheme scored the highest in livestock transport, food safety and traceability.

AHDB