March 2, 2007

Scotland optimistic on beef trade outlook
 

Beef producers in Scotland have taken some hard knocks over the past decade, but the outlook is now much more encouraging, provided that farmers adopt a sound business strategy.

That was the clear message from David Douglas, head of rural business at Clydesdale Bank, when he addressed farmers at the annual Royal Northern Agricultural Society's spring show at Thainstone, near Inverurie.

Douglas, who has a long background in farming, said: "Overall prospects for Scottish beef remain positive. This is based on the sustained quality of our product; the growing awareness among UK consumers of the importance of farm assurance and increasing evidence of support from shoppers for locally sourced food. Continuing progress in developing export business is also helping to expand market opportunities."

But the fact remains that very few producers can make a profit without factoring in the new single farm payment. Douglas is of the opinion that farmers are well aware of this and are making appropriate adjustments.

He said farmers are already thinking on a long-term basis albeit a projected massive reduction in beef production due to the reforms of the Common Agricultural Policy.

But Douglas said there is a two-tier reaction from producers.

In general, as the official figures show, there's been a slight reduction in the number of beef cows since the introduction of the single farm payment.

However, Douglas said what these figures don't show is that a number of individual farm businesses are increasing their commitment to beef, becoming more specialised in their approach to the sector.

Both those who are reducing and those who are becoming more specialised could well be making absolutely the right choice, he said.