Scotland’s red meat levy body – Quality Meat Scotland (QMS) – is set to take in less money this year as a result of Scottish-born animals being slaughtered south of the border.
The body, which promotes Scotch Beef, Scotch Lamb and Specially Selected Pork, has reissued its plea to the UK Government to find a solution to the issue of levy repatriation.
Chief executive ‘Uel Morton said QMS was losing around £1.6million a year as a result of falling livestock numbers and sheep and pigs being slaughtered south of the border.
Levy income for the year ended 31 March, 2014 was down £340,000 – £245,000 from lost pig levy alone – to £4.1million.
As a result, the levy body’s proposed external spend for the year ahead is down £200,000 to £5.6million – this includes grant income of £1.3million.
Mr Morton said there was “slow progress” on the levy money issue, despite Prime Minister David Cameron telling First Minister Alex Salmond that he was not prepared to change the way levy money is collected to solve the problem.
“Discussions are taking place and a group has been established to look at the problem and produce a solution,” said Mr Morton.
He said investment in pig slaughtering facilities at Brechin would help claw back around three-quarters of the levy income lost from pigs going south of the border.
Chairman Jim McLaren said the levy issue was in hiatus as a result of the independence referendum this year.
“In the event of a Yes vote there would need to be a completely different solution altogether, with a levy system that recognises all the animals that are leaving,” said Mr McLaren. He said the red meat body was focused on working to stop a further decline in livestock numbers – Scottish Government figures released last month revealed a 1.8% drop in Scottish cattle numbers to 1.72million.
The national sheep flock was also down 2.9% to 4.76million, while the pig sector has suffered a 9.4% drop in the size of the national herd to 293,500. Mr McLaren said consolidation in the meat processing sector and tight margins experienced by abattoir operators left “worryingly little capital for investment”.
“Notwithstanding the recent reduction in cattle prices, the fact is that current livestock prices and reduced livestock availability meant that operating margins for Scottish processors remain extremely low,” added Mr McLaren.
“It is vital that our processors have adequate supplies of livestock to achieve the critical mass our red meat supply chain needs to operate profitably and to ensure we are able to meet the continued increases in demand for quality red meat.”
Mr McLaren also confirmed changes to the board at QMS. Professor Julie Fitzpatrick, Sarah Mackie, Philip Sleigh and George Milne will replace Professor Phil Thomas, Robert Parker, Andrew Peddie and Gordon McKen.
“The diversity of the QMS board is one of its key strengths and I look forward to the contributions these new individuals will bring to our industry,” said Mr McLaren.