Challenging period ahead for red meat sector

The year 2022 and beyond will go down as being among the most challenging periods for Scotland’s red meat sector since the industry faced the foot-and-mouth outbreaks of 2001 and 2007 and the emergence of BSE in the 1980s.

Scottish Association of Meat Wholesalers (SAMW) president Ian Bentley.

Speaking this week newly elected president of the Scottish Association of Meat Wholesalers (SAMW) Ian Bentley said that rising costs, continuing labour shortages and the challenge to hit net zero targets headed a hit list of pressures for farmers, processors and retailers to address over the coming months.

He said that despite the upbeat mood in the sector in the run up to the return of the Highland show next week, it was impossible to ignore the spiralling operational costs, energy hikes and supplies crises facing all parts of the industry: “SAMW member companies have been battling to maintain staffing levels for at least the past 18 months, if not longer, with no sign of an easing in pressures in this area.”

He said that this had inevitably raised labour costs, leading to depressed processing margins which had been further exacerbated by the energy cost surge of recent months.

“I know many others are in the same place, including farmers, but that doesn’t change our sector’s bottom-line returns,” said Bentley.

“If ever we needed to work together as a whole-industry supply chain, then this is it.”

And he urged farmers, processors, retailers and government to talk to each other and properly understand each other: “We have a great product in Scotland and good lines of communication between the representative bodies that seek to drive the industry forward.

"While each sector will obviously seek to look after its own in the face of such a challenging period, there will be no prizes for allowing any one part of the supply chain to benefit at the expense of another,” he stated.

He added that the processing sector desperately needed strong livestock supplies at one end and a rewarding retail chain at the other.

He said that as tackling the climate change challenge took centre stage, the pivotal role that livestock farming and processing plays in safeguarding the country’s rural communities was in danger of being overlooked: “Sometimes, we feel it is an uphill battle to secure support and understanding so we can collectively work together to maximise our sector’s potential to the benefit of producers, workers and consumers.”

He also highlighted inspection costs as a major problem – with UK exporters facing considerable additional costs and hassle while imports were still treated with a light hand.

“This provides our competitors with a commercial advantage and leaves our livestock prey to major disease risks which could easily be avoided,” he warned.

But Bentley added: “Hopefully, the return of the Royal Highland Show will enable us to kick start a new round of meaningful discussions, geared to addressing the enormous challenges that lie ahead. Despite these challenges, however, we believe firmly in the future of Scottish red meat and desperately want to maximise the industry’s potential.”

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