Meat industry’s virus knock-on

While the Covid-driven closure of restaurants and other eateries has seen a huge change in sales patterns in the red meat industry, the pandemic can also have major repercussion on the supply side of the trade.

And following the recent partial – and sometimes complete – closure of some abattoirs and meat cutting plants, Quality Meat Scotland this week reminded the industry that such a disruption of throughput could have knock-on consequences for both ends of the supply chain.

In the latest market commentary, the organisation’s economics director, Stuart Ashworth warned of the dangers which a reduction in the available workforce in this sector could have if staff were forced to isolate with the disease or because they were in contact with someone who had the virus.

“When an abattoir closes it immediately creates challenges for all in the supply chain,” said Ashworth.

“At one level, farmers cannot send animals for slaughter and at another the supply of meat to consumers becomes disrupted,” he said adding that while a scarcity could push the price up to consumers, a glut of animals held back on-farm could reduce the farm-gate price.

“Any slowing down of the efficiencies of the supply chain inevitably create cost within it - whether it be the feed cost of holding animals on farm or the increased transport and administration costs of moving product around the country,” said Ashworth.

And he added that the protracted Brexit negotiations added another layer of uncertainty for businesses who regularly exported to the EU.