Beef farmers throughout Scotland have been left concerned for the industry after ABP announced yesterday the acquisition of Scotbeef’s Bridge of Allan abattoir and the Queenslie meat packing plant in Glasgow.
After weeks of rumours circulating the country, it has now been confirmed that the sale of the two sites is expected to be complete by the end of July 2023.
The sites will become part of the primarily Irish company’s UK meat division, which includes an existing processing facility in Perth.
While it is a relief to many that the central belt slaughtering and processing sites are remaining operational, beef finishers have described the news as ”worrying times” as the prices set fall in to the decision of even fewer hands.
One beef finisher from Aberdeenshire said the announcement was ”not looking good for the future” and that the beef job in Scotland was more or less now “in the hands of the Irish man.”
Beef sector ‘not looking good for the future’ says Aberdeenshire beef finisher
Another farmer said that a further lack in competition between processors will be ”damaging” for the industry, while others have said that live rings in auction marts should be better supported in order to receive a fair price for stock.
Frank Stephenson, group chief executive of ABP said the company will work with Scotbeef to ensure a ”smooth and seamless” transition for farmer suppliers, colleagues and customers at the plants.
“It will be very much business as usual with a commitment to building on Scotbeef’s well established tradition and reputation for high quality Scottish red meat products,” said Mr Stephenson.
‘Smooth and seamless’ transition ahead says ABP chief.
National Beef Association chief executive Neil Shand said he could understand why a lot of finishers would be worried with the announcement.
He said: “A lot of producers will be concerned on how the supply chain will now work and those people who have a relationship with Scotbeef may not have that same relationship with ABP.
“However, it’s more important that the processor capacity is remaining in Scotland rather than the Bridge of Allan and Queenslie sites being lost completely.”
Questions are now being asked as to what yesterday’s announcement may mean for the proposed £17 million abattoir which Scotbeef has intended to build at Thainstone Business Park.
In April, it was reported by ANM Group that they no longer had shares in Scotbeef Inverurie Ltd and that a digger was now on site and it looked as if the construction was underway.
Mr Shand said that if Scotbeef remains committed to the north-east, he hopes the announcement will lead to investment for a new site at Thainstone that will result in the company being an independent player.
Hopes for new £17m Inverurie abattoir to get up and running
“There will likely be a week or two of disruption with the transition but once everything settles down, ABP will have to be very powerful to source the cattle they need to the fill the capacity.”
NFU Scotland (NFUS) president Martin Kennedy said the acquisition was a significant concern for the union’s membership.
“Any consolidation in red meat processing risks the healthy required competition in our markets,” said Mr Kennedy.
“The future of our vibrant live ring is critical to transparency for the primary producer, and this must be maintained in Scotland.
“We welcome any commitment to maintain Scottish processing and packaging sites under ABP, and we are relieved that Scotbeef will continue to operate in Inverurie, Annan and East Kilbride.
Consolidation in red meat processing risks the required competition in our markets says NFUS president
“These sites play a crucial role in adding value to farm businesses, as well as supporting local communities through jobs, and protecting our standards and provenance.
“It is imperative that investment continues to focus on local multi species abattoirs to maintain Scottish production of our iconic red meat sector.”
Scotbeef has said it will continue to operate from its sites in Inverurie, East Kilbride, Annan, Heysham and Woverhampton.
