QMS Beef and Lamb Forum

Chief Executive QMS, Uel Morton gave an update on QMS activities and a review of industry issues. See attached pdf file.
The three Breakout Workshops included Consumer Insight, Efficiency of Cost of Production and Education for the Next Generation.

Laurent Vernet's Consumer Insight 09/12/08

Jennifer Robertson's Education for Next Generation 09/12/08

The afternoon session was themed Sustaining Critical Mass within the Scottish Industry. Stuart Ashworth, QMS Economics Services Manager, set the scene with an overview of the global situation for the supply chain. Dr Alan Renwick, Land Economy Group Manager, with SAC and one of the authors of the report “Farming's Retreat from the Hills” took a look at what can be done from the producer perspective. Alan Stevenson highlighted the implications and some of the ways that the supply chain from processors through to butchers can sustain supplies.

Stuart Ashworth's Sustaining Critical Mass 09/12/08

Alan Renwick's Sustaining Critical Mass 09/12/08

QMS Chairman Donald Biggar summed up the day:-

“There has been a common theme this afternoon and it is quite clear that maintenance of primary production is absolutely essential.

“I always believed the first law of economics was supply and demand but it is simply not happening.

“We have heard from all the speakers that the prospect of continued global demand for protein whether it be beef, lamb or pork is going to increase as the population goes up, large economies are emerging and standards of living are increasing so there ought to be a really bright future out there.

“But we are going to die before we get there if the critical mass of our industry in Scotland is somehow not sustained if supply is not supported while demand is just around the corner.

“How then are we going to survive until we get to the stage where the market gives the return?

“We heard from Alan Renwick that the landscape is worth some £350m to the Scottish economy. If that is the case and we as an industry are providing that landscape, then there is absolutely no reason to be shy about demanding of the policymakers that they actually give us a share of that to make up for the lack of market return to sustain production. If we lose the critical mass as Alan Stevenson pointed out the whole cycle begins toi fail and if we lose processing capacity we lose options to sell our product. More of our product will either not be produced or exported out of the country at a loss to our economy.

“We have some very important advantages here in Scotland. First of all we have a Government that have stated that they wish to see the Food and Drink industry grow from £7bn to £10bn. It is their policy to support that industry and without the raw materials, it ain't going to work.

“We have a small industry that is able to collaborate. We have the possibility of improving the health of our livestock because we are almost an island if you look at a map of Scotland.

“We can do various things, like EBVs, forward, we can help our bottom line by taking down costs.

“We have a premium for our beef and hopefully a bit of a premium emerging for our lamb. Small as that may be but it is worth about £20m per year to Scottish industry. So if QMS is costing the industry £5m or £6m then £20m return isn't too bad. To have QMS and others as an industry to defend that premium is going to be important.

“If ever our assurance schemes or if ever there was a need for better labelling and clearer identification of country of origin was needed in the situation in the Republic of Ireland yesterday and the day before really enforces that. It is possible that Irish pork is being sold under a saltire in Scotland when it has come to Scotland and been processed, then the possibility of undermining our product are there.

“It is going to be extremely important to drive home the message that we have a whole chain farm assurance system in Scotland which is unique. It takes in the feed companies and right through. Country of origin labelling is extremely important and sadly keeps getting kicked into the rushes. Maybe we can take the opportunity to resurrect that.

“The market is not returning for us and that is putting raw material production at enormous risk. Public Goods is a way by which we can ask the Government to support primary production in the meantime because hopefully round the corner there is demand that will provide a market return.

“Hopefully we can work together to make sure that as an industry we are seen not just asking for help but to be helping ourselves.”

Attachments:

• QMS UPDATE 091208.pdf