Scotland’s meat processing companies could face another challenging year, although the prospect may be brighter for farmers, according to Quality Meat Scotland (QMS).
Launching the Scottish Red Meat Industry Profile yesterday, QMS head of economics services Stuart Ashworth said meat processors were likely to feel the pinch as a result of falling consumption and tightening supplies later this year.
However, the outlook was brighter for producers with a tightening in cattle numbers predicted for later this year, he said.
Mr Ashworth said calf registrations were down 3.8% in the first four months of this year, compared to the same period last year when they were down 4.5% on 2011 – the biggest drop in registrations since records began in 2002.
According to the QMS report, revenues from the red meat sector – including farming and processing – were down nearly 5% last year to just under £2billion.
QMS economics analyst Iain Macdonald said a survey of Scots meat processors revealed revenue down around 10% to £870million in 2013 as higher wholesale prices only partially offset a 12% decline in livestock throughput.
Mr Macdonald said employment in the meat processing sector had fallen 32.5% in the year to 2,700 – this was mainly a result of the closure of Vion’s Halls of Broxburn pig processing plant.
The QMS report also provided estimates for Scotland’s self sufficiency in red meat production.
Mr Macdonald said Scotland was around 147% self sufficient in beef production, based on consumption of around 113,000 tonnes a year or 21kg per person.
In terms of lamb supply, he said Scotland was 178% self sufficient based on consumption of around 15,000 tonnes a year or 3kg per person.
However, he reported “insufficient levels of production” for pigmeat with the country only producing 22% of its consumption needs, which stand at around 108,000 tonnes a year or 20kg per person.