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.

COPENHAGEN, 11 October (Reuters) – Danish Crown, a major meat producer and exporter, announced on Friday plans to cut around 500 white-collar jobs as part of a significant reorganisation aimed at saving approximately 500 million crowns (£59 million) in annual costs.

“Danish Crown is in the midst of a crisis, and we are facing radical changes. Our costs are simply too high compared to our earnings,” said CEO Niels Duedahl, who assumed his role on 1 September, in a statement. “We are now restructuring the organisation and focusing entirely on our core business to ensure better payments for the farmers who own Danish Crown,” he added.

In April, the company revealed plans to close one of its major slaughterhouses in Denmark and lay off nearly 1,200 employees by mid-September, expecting to save around 250 million crowns over the next three years.

At that time, Danish Crown stated that the number of pigs sent for slaughter in Denmark had significantly declined since 2021, making it necessary to streamline production to offer Danish farmers a competitive price for their livestock.

Reuters

 

The Association of Independent Meat Suppliers (AIMS) has hit back at recent claims by Food Standards Agency (FSA) Chair, Susan Jebb, regarding the necessity of constant veterinary oversight in meat establishments.

AIMS contends that the FSA’s stance undermines the legal responsibilities of food business operators (FBOs) and fails to acknowledge the effectiveness of modern food safety technologies.

Dr Jason Aldiss, Head of External Affairs at AIMS, criticised the FSA’s approach, stating, “The suggestion that standards would fall without full-time vets onsite is misleading and disregards the legal responsibility FBOs have for food safety.” He added that the FSA’s current stance represents a shift away from its original risk-based approach and towards a risk-averse model that unnecessarily prioritises veterinary presence.

“The law is clear: FBOs are responsible for food safety, while veterinarians are there to verify compliance, not to manage daily operations,” said Dr Aldiss.

The UK’s meat industry is globally recognised for its high standards, largely driven by the businesses themselves. AIMS argues that technology, such as blockchain and artificial intelligence, offers more effective and efficient oversight than traditional veterinary presence, which adds significant costs without improving safety outcomes.

AIMS is now calling for the FSA to embrace more modern, technology-led solutions to maintain the UK’s world-leading food safety standards, rather than relying on outdated veterinary controls.

The latest market update from the AHDB has revealed that cattle and sheep prices are holding steady as strong demand continues to support the market.

In its report for the week ending 10 October 2024, AHDB highlighted key trends in the livestock sector, with both cattle and sheep prices seeing minimal fluctuations.

Cattle Market Update

Deadweight cattle prices showed slight declines, with the overall average steer price down by 1.2p, now standing at 456.6p per kg. Despite this minor dip, cattle prices remain relatively strong due to solid demand from domestic processors. The report noted that tight cattle supply has kept the market firm, preventing any significant price drops.

Heifer prices remained stable, with the average deadweight price reaching 453.7p per kg, showing resilience in the market. Cull cow prices have also been holding steady, supported by ongoing demand for manufacturing beef.

Sheep Market Performance

Sheep prices have also remained firm, with the GB deadweight old season lamb (OSL) SQQ (standard quality quotation) recording a marginal rise of 0.1p per kg to reach 573.6p per kg. The liveweight OSL price saw a slight increase to 264.7p per kg, up by 1.7p. These price movements reflect the continuing demand for lamb, driven by steady domestic consumption and robust export demand.

AHDB analysts pointed out that lamb prices are expected to remain stable in the coming weeks, with supply conditions remaining tight due to seasonal factors. However, the outlook for the market could shift as the Christmas period approaches, when demand traditionally rises.

Looking Ahead

The AHDB report highlighted that while prices have remained stable, both cattle and sheep markets are subject to pressures from wider economic conditions, including rising input costs and fluctuating consumer demand. Nevertheless, strong domestic and export demand is expected to keep prices firm in the near term.

As the market moves towards the festive season, demand for lamb is likely to increase, potentially supporting further price rises. However, the cattle market will remain sensitive to shifts in supply and demand dynamics as the year progresses.

AHDB

Scotland’s Red Meat and Offal Exports Surge to £137m, QMS Survey Reveals

The Association of Independent Meat Suppliers (AIMS) has welcomed the recent reopening of the export market for poultry to South Korea, following the UK’s earlier success in securing poultry export access to South Africa for the first time in eight years.

Tony Goodger, spokesperson for AIMS, commented, “The export market to South Korea for poultry and poultry meat products was suspended in November 2020 due to concerns over Avian Influenza. It’s fantastic news that, after the UK was declared free from Avian Influenza earlier this year, trade negotiators have successfully reopened this valuable market.”

In addition to South Korea and South Africa, the export market to Antigua has also reopened. The Export Health Certificate (EHC) 1805 for fresh poultry meat was restored to active status, following a Caribbean ban imposed in March 2021.

Goodger highlighted AIMS’ ongoing collaboration with the Animal and Plant Health Authority (APHA), noting, “We have been working closely with APHA to understand what needs to be done to lift trade barriers and restore access for our members to key export markets.”

Looking ahead, AIMS is keen to see the reopening of EHC 7570, which would allow the export of poultry meat and products to Saudi Arabia. This market has been on hold since October 2020. However, Tony Goodger acknowledged that reopening access to Saudi Arabia might face delays, given recent developments, including Saudi Agricultural and Livestock Investment Company (SALIC) acquiring stakes in major poultry producers.

Despite this, AIMS remains optimistic about future opportunities for UK poultry exporters in global markets.

A total of four new Argentine meat plants were allowed by China to send beef shipments to the Asian country, it was announced this week by Buenos Aires’ Agriculture, Livestock and Fisheries Secretariat.

According to Argentina’s National Agri-Food Health and Quality Service (Senasa), so far this year 426,898 tons of bovine meat products, both bone-in and boneless, have been exported to China, a market representing nearly 80% of the country’s beef exports.

“These authorizations are the result of the efforts made by our portfolio together with Senasa and represent a step forward in the expansion of our exports to international markets,” a statement from the Agriculture Secretariat read.

The new plants accessing the Chinese market is a crucial boost for the meat processing industry, it was also explained. The new authorisations will be valid from Sept. 2024 to Sept. 2028.

The GACC published on its web page an update of the list of foreign producers and processors of Argentine land animal protein and fat for animal consumption, with the incorporation of the meat packing plants Quickfood SA, Mapar SA, Refineria del Centro SA, and SA Importadora y Exportadora de la Patagonia.

MercoPress

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

FSA criticised over push to fast-track ‘lab-grown meat’ approvals in the UK

FSA launches consultation on Mechanically Separated Meat

MercoPress

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.