The loss of European grant funding following Brexit could result in a funding gap of nearly £500,000 for Quality Meat Scotland (QMS).
The red meat promotion body yesterday warned Brexit could have far-reaching implications for the Scottish red meat industry.
However, QMS chairman Jim McLaren said the organisation was ready to rise to the challenge and play a crucial role in the post-Brexit future of the sector.
He said the levy body would shortly be publishing a specially-commissioned report which highlighted the “dispro-portionate importance of the Scottish red meat industry to Scotland’s economy”.
Politicians needed to ensure access to both European and international trade markets, access to non-UK labour and future farm subsidy support during Brexit negotiations, said Mr McLaren.
“The uncertainty surrounding Brexit is a significant concern for those operating in the Scottish red meat industry and it is vital that lack of clarity does not constrain decision-making, investment and long-term planning,” said Mr McLaren.
“For example calves born in spring 2017 will be marketed in 2019 and 2020 – when we may no longer be part of Europe and we don’t know what changes may have taken place by then.”
QMS chief executive Uel Morton said the financial impact of a Brexit on the organisation was more certain.
In the financial year ended March 31, the organisation received £786,000 in grant income, with £508,000 drawn down from the European Commission and £271,000 from the Scottish Government.
Mr Morton said: “Grants are increasingly difficult to source and Brexit means that there is uncertainty. In the past 10 years we have successfully supplemented our marketing budgets with over £5million worth of these EU grants.”
During the year total income at the organisation was down 7% to £6.28million, from £6.78million previously. Red meat levy income was £3.972million, from £4.095million before.
The organisation ended the year with a deficit of £178,226 and Mr Morton said this had been planned.
On the issue of levy repatriation – recouping levy money for Scottish-born animals being slaughtered south of the border – Mr McLaren said key meetings on the issue were set to take place in the next few weeks.
He declined to comment on whether or not recouping lost levies, which are thought to be worth more than £1million every year, would fill any funding gap caused by Brexit but said levy repatriation would be completed before there was any talk of increasing farmer levies.
