Millers of Speyside Abattoir to Focus Solely on Beef Slaughtering Amid Rising Costs

The Millers of Speyside abattoir in Grantown will transition to solely a beef slaughtering facility starting next year. Managing director Sandy Milne cited labour shortages and rising operational costs as the primary reasons for this shift, making it necessary to streamline the business.

As part of this change, the abattoir will no longer offer private kill services for pork and lamb. However, arrangements have been made for pig private slaughter at Brechin abattoir when required. Milne explained that the business is outsourcing the supply of lamb and pork for their retail butchery customers and will focus exclusively on beef slaughtering from the start of the year.

Milne emphasized that the shortage of experienced labour and increasing running costs necessitated this decision. While private kill services for pork and lamb will be discontinued, the abattoir will continue to provide private kill facilities for cattle.

Original story by Keith Findlay | The Press and Journal

A year in review: the Australian cattle market

Key points:

Stability has returned to the cattle market, reflecting the balancing act between supply and demand.
Market confidence has continued to trend upward despite the weather conditions in Victoria and SA.
Slaughter has been very consistent and remains the highlight of the year.

After a turbulent 2023, the cattle market got back on its feet during 2024. The beef herd has now reached maturity, leading to more beef in domestic and international markets. 2024 has been marked by three key themes:

Stability
Confidence
Stronger supply.

Stability

Without a doubt, the cattle market has stabilised – reflecting the balancing act between supply and demand which are influenced by weather, overall confidence and increased female slaughter, among many other factors.

Prices over the last 12 months have lifted by 20–39%, indicating the recovery of the market from the challenging conditions in 2023. The current prices are now tracking 1–20% below the 10-year average and reflect the substantial recovery the cattle market has shown over a short period of time.

Over the last year, Australia experienced two different seasonal conditions split across the south and the north. The seasonal conditions in pastoral regions in SA and western Victoria drove increased turn-off. As a result, NSW and Queensland producers benefited from this turn-off due to their favourable seasonal conditions.

Confidence

Market confidence has certainly shifted from last year – many would say last year was the first time in a long time that producers made a decision based on a forecast rather than actual weather events. This confidence influenced buying behaviour; however, despite poor conditions in Victoria and SA, prices remained strong due to demand from NSW and Queensland producers.

All eyes have been on the global market, particularly the United States, which has recorded the lowest cattle herd in about 70 years. This has driven high cattle prices and thus increased the volume exported.

Stronger supply

Supply has remained steady over the past 12 months, with weekly slaughter capacity averaging 130,000 head a week according to the National Livestock Reporting Service (NLRS). The second half of the year averaged slightly higher at 140,000 head a week. Slaughter in 2024 is tracking just above the 10-year average and is around 16% above the 5-year average.

Processing capacity has increased by around 20% over the past four years, indicating the impact of the Pacific Australian Labour Mobility (PALM) scheme and other labour schemes which have significantly grown processing capacity.

Attribute to Emily Tan, MLA Market Information Analyst

Another Arrest in Food Crime Probe

NFCU officers, together with Dyfed-Powys Police, attended a farm in Wales on Wednesday 4 December 2024 and arrested one man.

The arrest is linked to five earlier arrests made in London, in connection with seizures of suspected illegal meat on Monday 25 November 2024.

The man was interviewed by NFCU officers and has been released under investigation.

“Officers from the National Food Crime Unit, working with Dyfed-Powys Police, arrested a 52 year old man from West Wales on suspicion of conspiracy to supply unfit meat, as part of an investigation into alleged illegal and unsafe meat.

Smokies are a food safety issue as they aren’t produced under hygienic conditions, and they are illegal because the meat still has its skin on and lacks traceability. We are advising people to steer clear of sheep meat produced in this way as it may be a health risk, and to contact their local Trading Standards or us if they suspect smokies are being produced or sold.

If we find any unsafe food on the market, we will take action to protect the public. If you suspect food crime, report it to Food Crime Confidential always available on food.gov.uk or by phoning 0800 028 1180.”

Neil Castle, Deputy Head of the FSA’s NFCU

A year in review: the Australian sheep and lamb market

Key points:

Following the volatile market last year, producers acted cautiously in 2024.
Differing conditions across the country promoted trade and competition.
Record production was driven by strong export demand.

2024 has been a year of recovery, nervousness and record production. Compared to the previous 12 months, the sheep and lamb market has shown strength and stability. However, when we look further back, unpredictability and volatility have continued to impact producers across the country.

Cautiousness

Coming out of an extremely volatile market, the sheep and lamb sector entered the new year in seeming recovery. Driven by a positive summer across much of the east coast, markets reflected a move beyond the confidence and climate-impacted 2023. The market, however, did not remain in recovery, and instead fell more dramatically than the previous year. Producer sentiment in May reached +4, remaining 22 points below the previous year. This initial volatility impacted producer confidence in the market as well as trading decisions. Cautiousness remained through the year as prices lifted in the autumn market and continued as prices surpassed the 2023 market.

Duality of conditions

As the year continued, quality had the largest impact on price. This reflects a market before recent history, where liquidation and rebuild have driven supply and demand influences. The Australian flock was sitting at its largest in over a decade. Strong supply, partnered with solid international and domestic demand, led to record export volumes. Growth in both established and emerging markets shows that as the top exporter of sheepmeat, Australia has been able to keep up with our improving production.

Strong export demand has maintained competition in the domestic livestock market. This demand has caused market protection across the country as conditions have varied dramatically.

Regions across SA, Victoria, and NSW have experienced extremely tough conditions. Faced with a positive summer season, many producers started the year well. However, conditions dried up fast and hard, placing producers in a position of possibly being overstocked and relying on feed. Alternately, central and northern NSW and sheep pastoral zones generally experienced positive conditions, creating an environment that supported quality and promoted trading. This has led to a very strong year-end as finished lamb prices have remained firm much later than the seasonal norm.

WA continued to operate differently from eastern states without the support of close markets. The state began the year on a low base as dry conditions impacted joining and selling decisions. Turn-off and individual destocking led to a surplus of stock.

There were two main outcomes:

Prices did not see the same recovery as the eastern market.
For a period, more animals were turned off than could be absorbed by domestic processors.

This price and stock availability caused a significant movement of stock out of the state, with commentary noting WA animals were travelling even beyond neighbouring SA.

Production

Production of lamb and mutton has skyrocketed thanks to supply and a growth in processor capacity. Looking into weekly slaughter, initially, 2024 followed regular seasonal trends; however, focusing on the tail end of this year, there has been a clear new focus for processors.

Mutton volumes have lifted dramatically across the country, indicating strength in our export market demand but also an indication of producer decision making. Across WA, the proportion of mutton over lamb is relatively high, showing that producers may be eating into their breeding flock. On the east coast, all states have lifted their production mutton, especially NSW, which just last week processed more than 50% of mutton on lamb, which hasn’t been done since 2007.

Producers are becoming more efficient in production and are able to produce more lambs from less due to genetic, fertility and breed investments. With the reduction of wool production, dry conditions, a large ewe flock, and generally firm mutton prices, decisions have been made around the retention of older stock.

The processing sector’s ability to keep up with the sheep supply is growing. Finishing off with some numbers, based on the year-to-date National Livestock Reporting Service (NLRS) slaughter volumes, combined sheep and lamb slaughter – adjusted up to account for an approximate 20% coverage gap of the NLRS – we have processed more than 37 million sheep and lambs in 2024, with three weeks to go. Australia has not surpassed 35 million in a total calendar year before, enforcing how capable the sector is to absorb a new normal of production.

Looking ahead to 2025

The past 12 months have demonstrated the ability of the sheep sector to recover. An elevated flock, strong supply of stock, and even stronger supplies of sheepmeat, have been absorbed into the domestic and international production systems. Australia is operating in an elevated state which is likely to remain into 2025. Without predicting any extreme climatic conditions (wet or dry), we are likely to continue to produce elevated levels of sheep and lamb.

Three things to keep an eye on into 2025:

growing international markets, including the emerging UK and India FTA opportunities
the United States protein situation, which will impact more than just cattle and beef
breed dynamics – the growth of shedding sheep and the move away from Merinos and wool – how will this impact sheepmeat production moving forward?

Attribute to: Erin Lukey, MLA Senior Market Information Analyst

Pickstock Expands to Scotland

A multi-million pound expansion by an English meat processing firm into Scotland has been approved.

Shropshire-based Pickstock has been granted planning permission to build an abattoir close to the A74(M) near Ecclefechan in Dumfries and Galloway.

The company said the scheme would create up to 60 full-time jobs and reduce travel times for animals currently being taken to its site in Telford.

Dumfries and Galloway Council’s planning committee went with officer recommendations to approve the scheme.

BBC News

Two UK Sites Re-Listed for Chinese Pork Exports

UK pork exports to China have received a boost with the re-listing of two sites after a huge collaborative effort between many stakeholders, including government departments, industry and AHDB.

The re-listing followed a relentless effort over several years which included frequently bringing the right parties together in the two nations to support discussions and demonstrate the exceptionally high standards of the industry and the sheer economic value of trade to China. This kept the issue alive and front of mind whenever possible.

China remains the UK’s biggest export market for pork. In 2023 the UK exported £180m worth of pig meat to China and shipped £117m worth of product in the first three-quarters of 2024.

Angela Christison, AHDB Pork Sector Director, said:

“Today’s announcement is fantastic news. Around 50% of the world’s pork is consumed in China. It’s impossible to overstate the importance of this market with its growing demand.

“The potential for our high-quality pork is immense and we look forward to continuing working with government and industry to maximise the opportunities.

“Going into 2025 this will be a welcome boost for the UK pork sector, and we look forward to achieving further success.”

AHDB

Irish Cattle Trade & Prices Update: Throughput and Trends

Throughput

There were 39,812 cattle processed in DAFM approved plants last week, an increase of just over 1,000 head from the previous week. This uplift is primarily due to an increase in the young bull kill when compared to the previous week.

Prime cattle throughput YTD is currently on par with the same period last year at 1,639,020 head although a notable tightening in prime cattle availability is expected as we move into the final quarter of the year. A contraction in cattle numbers on the ground and a lively export trade have contributed to this outlook with numbers expected to remain tight for much of 2025.

Average carcase weights also continue to trend below previous years with the combination of a challenging grass growing season and a growing dairy influence on the prime cattle kill playing a role in the decline. The downward trend in average carcase weights is expected to continue in the short to medium term with calf registrations to suckler cows continuing to decline, while the number of beef sired calves produced from the dairy herd continues to increase.

Prices

There was a lift in the steady base quotes at Irish meat plants this week in response to tighter supplies and an expected increase in retail and foodservice demand for the Christmas period. In general, producers were offered a base price of €5.30/kg for steers with reports of up to €5.40/kg available.

Starting quotes for heifers are in the region of €5.40/kg this week with similar room for negotiation being reported. The trade for young bulls was also described as steady, with prices of between €5.60/kg and €5.70/kg on-offer for R grading animals under 24 months of age.

The cow trade remains relatively steady, with well-fleshed O+ grading suckler cows being offered prices of €5.00-5.10/kg, while prices for O grading dairy cows generally range from €4.90-5.00/kg. A significant proportion of the cow kill have achieved a conformation score of P in recent months and the prices available for these animals vary significantly based on grade, weight and quality.

For the week ending 24th November 2024, the average price paid by Irish beef processors for R3 increased slightly by 2c/kg to be at €5.31/kg. This remained 59c/kg ahead the corresponding week in 2023 when the R3 steer price was €4.72/kg. Note that reported prices exclude VAT but include all bonus payments such as in-spec bonus, breed-based producer groups etc.

EU and UK prices

Across the EU, the average reported price for R3 grading young bulls was €5.54/kg (excluding VAT) for the week ending 24th November, 2024. This is 49c higher than Week 46 of last year when prices averaged €4.89/kg for this category.

In the UK, tighter cattle supplies and firm demand have meant deadweight beef prices have continued to firm. This week the average UK R3 steer price increased by 3c/kg to €6.33/kg.

Bord Bia

Strong Demand Drives Irish Sheep Prices Higher

EU-Mercosur Trade Deal Nears

BRUSSELS, Dec 6 (Reuters) – The European Union and South America’s Mercosur bloc are expected on Friday to finalise a free trade agreement but it faces a tortuous battle for approval in Europe given firm French opposition.

After negotiations spanning more than 20 years and five years on from an initially inked deal, European Commission President Ursula von der Leyen and her Mercosur counterparts are due to announce a political agreement at 9.30 a.m. (1230 GMT) in Montevideo, capital of Uruguay.

European farmers have repeatedly protested against an EU-Mercosur deal that they say would lead to cheap imports of South American commodities, notably beef, that do not meet the EU’s green and food safety standards.

Italy said on Thursday there were no conditions for signing off on a deal. Poland said last week it opposed the free trade deal in its current form.

European green groups also broadly oppose the accord. Friends of the Earth calls it a “climate-wrecking” deal.

The trade agreement would require approval from 15 of the 27 EU members representing 65% of the EU population along with a simple majority in the European Parliament.

South American negotiators remain optimistic that the EU will eventually give its approval and that France will not be able to rally a blocking minority.

Reuters

Five Arrested in Food Crime Probe

NFCU officers, together with police, attended a location in London on Monday 25 November 2024 where they discovered unrefrigerated vans containing 48 sheep carcasses.

The meat is thought to be illegal, having undergone a smoking process with its skin on, and is not traceable. Meat should have traceability from farm to fork and be subject to checks by FSA vets and meat hygiene inspectors.

As a result, police arrested five men who were interviewed by NFCU officers. All five have been released under investigation.

FSA

Icelandic Lamb Gains Protected Status

Reykjavík, Iceland – 4 December 2024 – Icelandic Lamb has officially been granted the prestigious Protected Designation of Origin (PDO) status by the European Union, marking a significant achievement for Iceland’s agricultural sector.

This certification recognises the unique qualities and traditional production methods of Icelandic Lamb, ensuring that only lamb raised in specific regions of Iceland can bear this esteemed label.

The PDO status acknowledges the exceptional quality of Icelandic Lamb, renowned globally for its distinctive flavour, tenderness, and high-quality meat.

Raised in Iceland’s lush pastures amidst pristine landscapes, the lambs graze on a natural diet consisting of wild herbs, grasses, and seaweed, which contribute to the unique taste that has made the product a treasured delicacy.

“The PDO designation is a tremendous accomplishment for Icelandic agriculture and a tribute to the dedication of our farmers,” said Guðbjörg Ríkey, head of the Icelandic Meat Producers Association. “This recognition ensures that consumers worldwide can enjoy Icelandic Lamb with confidence, knowing it has been produced to the highest standards, in accordance with traditional practices passed down through generations.”

The PDO status guarantees that only lambs born, raised, and slaughtered in Iceland are allowed to be marketed as “Icelandic Lamb”, safeguarding its authenticity and heritage. It also offers greater protection from counterfeiting and misuse of the name in international markets.

Icelandic Lamb is particularly valued for its lean, tender meat and rich flavour, which is enhanced by the island’s clean, unspoiled environment and traditional free-range grazing practices. The lambs are raised without the use of growth hormones and are fed a diet that includes nutrient-dense wild plants.

The PDO status for Icelandic Lamb now joins other renowned Icelandic products such as Icelandic Skyr, further elevating Iceland’s standing in the global market for premium, sustainably produced food.

As part of the EU’s PDO scheme, Icelandic Lamb will benefit from additional protection against imitation and unfair competition, ensuring that the name remains synonymous with quality and authenticity.

This certification is expected to enhance export opportunities for Icelandic farmers and open new doors to markets across Europe and beyond.

With the PDO status now in place, Icelandic Lamb is set to become a more prominent player in the premium food sector, appealing to discerning culinary enthusiasts who seek products rooted in tradition and heritage.

As the PDO logo appears on packaging, it will stand as a symbol of distinction for Iceland’s prized lamb, celebrated both at home and abroad.

About Icelandic Lamb

Icelandic Lamb is a premium meat product from sheep native to Iceland, raised in the country’s unspoiled natural environment. The lambs graze freely on Iceland’s hillsides and coastal areas, feeding on wild grasses and herbs.

Known for its rich, distinctive flavour, Icelandic Lamb is considered a national delicacy and is highly prized by chefs and food lovers for its tenderness, taste, and sustainability.