Common Agricultural Policy Reform Needed

Quality Meat Scotland has called for future changes to the Common Agricultural Policy (CAP) to address the financial pressures and demands placed on the red meat sector as well as growing national and international concerns about food security.

In its response to the Scottish Government's Consultation on the Future Implementation of the CAP in Scotland, QMS has highlighted major concerns at the continuing decline* in Scottish beef cow and breeding ewe numbers since decoupling.

The red meat promotion and development body believes that the retention of targeted support for the livestock sector is essential if the downward trend is to be reversed and Article 68 offers some capacity to do that. It also calls for any future area payment scheme to reflect the productive capacity of the land farmed and be paid to active farmers.

QMS Chairman Donald Biggar said: “The figures tell the story. Since 2004 suckler cow numbers in Scotland have dropped by 6%, despite the existence of the calf scheme, and our breeding ewes are down 7%. Farmers are putting off their suckler cows and breeding ewes because they can no longer make a decent living from producing livestock.

“Our annual analysis of business profitability reveals that even the most technically efficient producers in Scotland find it near impossible to return a profit without an element of support.

“It's not just the farmers who are suffering, falling livestock numbers impact negatively on the whole of the Scottish red meat sector. From the processors who can't get enough raw material to keep their plants operating efficiently, to the auction markets and hauliers who depend on a buoyant livestock sector for their own profitability.

“Although we have concerns about the mechanism to fund Article 68, we believe it offers some capacity to target support to the livestock industry. It has a role to play in the wider portfolio of support available through the CAP and the rural development programme.”

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The Scottish Government launched its CAP Consultation in June with a deadline for submissions on Friday 5th September 2008. This followed the European Commission's published proposals for a Health Check of the 2003 CAP reform and these negotiations should be completed later this year.

** Article 68 is the element within the Policy that allows some partial coupling of support to improve the quality and marketing of agricultural products.

Notes to editors:

* Between 2004 and 2005 suckler herd numbers in Scotland fell by 2%. During the same period numbers fell in England (who do not have a calf scheme) by 6%.

Since 2005 the English herd has declined by further 1% while the Scottish herd fell by a further 4% to currently stand at 470,000 head.

In Northern Ireland where a fully decoupled scheme also operates the suckler cow herd has dropped by 13%.

This would suggest that while the Scottish Beef Calf Scheme has not stopped the decline in suckler cow numbers it has slowed the rate of decline in the early stages of Single Farm Payment adjustment and the overall decline in still less than in England and Northern Ireland.

A full copy of QMS's submission is available on our website at www.qmscotland.co.uk