Quality Meat Scotland Board Submits Levy Recommendation

The submission follows many weeks of engagement with levy payers and Scottish red meat industry representatives. This included 12 open meetings around Scotland where the priority was to encourage attendees to ask questions and air their views.

“Feedback from these meetings, and other soundings with key industry representatives, on the proposal to raise levy rates has been resoundingly positive. This has given the QMS board a clear signal to proceed with submitting the recommendation to the Cabinet Secretary,” said QMS Chief Executive, 'Uel Morton.

“We have also been very encouraged over recent weeks by the vast majority of levy-payers who have voiced their support for what QMS is delivering for the industry. This has been very much appreciated by both the board and staff,” added Mr Morton.

The proposed increase in levy rates, effective from April 2010, are as follows: cattle – 93p; sheep – 13p and pigs – 21p.

The increase would allow QMS to maintain and develop its current levels of activity for the Scottish industry's brands – Scotch Beef, Scotch Lamb and Specially Selected Pork – and its work to improve the efficiency of the red meat supply chain in Scotland.

“The proposed levy increase would allow QMS's marketing and promotion expenditure to return to over £2.5m and enable industry development spend to be maintained at over £1m, at a time when production and processing efficiency is crucial,” said Mr Morton.

It will also, he observed, allow QMS to be able to robustly respond to challenges such as the anti-meat lobby and give a sound funding base from which QMS can attract additional funding from Government and other bodies.

For every £1 of cash which QMS received from levy-payers during 2009 a further 24p was generated from sources including Government and EU through co-funding and partnership working.

A response from the Cabinet Secretary is expected before the end of 2009.

Further Information:

• Levy rates have remained unchanged since 2001 for cattle and sheep, and since 1999 for pigs. During that period inflationary erosion coupled with reducing numbers of livestock produced in Scotland have impacted on QMS's spending power from levy.

• Since 2001 static levy rates have failed to keep pace with the average price producers receive for their livestock. In that time cattle, sheep and pig prices have all increased by a consistent 58%. Current levy rates as a percentage of average livestock values are relatively small – less than 0.5% for cattle and around 1% for sheep and pigs.

• Without a levy increase, the anticipated decline in QMS's income during the next financial year and beyond, would limit its ability to promote the brands (Scotch Beef, Scotch Lamb and Specially Selected Pork) and improve the efficiency of the red meat supply chain in Scotland.

• Income from levy in 2008/09 was down to £3.9m compared with £4.2m in 2007/08, with estimated income for 2009/10 down to £3.7m. One example of the squeeze on resources was the consolidation of Scotch Lamb marketing campaigns from spring and autumn to autumn-only this year.