May 8, 2006

 

Scottish beef producers hopes to re-enter Italian market

 

 

Scottish beef producers are hoping to make a comeback in Italy, its former number one customer after a ten-year hiatus as bans on British beef is lifted this month. However, convincing Italians to buy Scottish beef again could prove to be an uphill task, head of the Italian department of Food From Britain (FFB) Nigel Brown said on Friday (May 5).

 

Although many Italians would welcome Scottish beef and most think mad cow disease, which caused the ten-year ban, was mainly an English problem, they are still nervous, Brown said.

 

Scotland's exported GBP 52 million (US$96 million) of beef to Italy before the ban on British beef in 1996. 40 percent of Scotland's beef exports went to Italy.

 

Although hopes remain that Scottish beef could regain favour with Italian consumers, producers concede it would be difficult to dislodge competitors who have entrenched themselves in the last decade.

 

A government market analysis from Food from Britain reported that a ten-year absence from the Italian market means that former trade relationships need to be re-established. Scottish operators must also re-learn the market and familiarize themselves with the new needs of consumers.

 

Traders say Scottish beef would have to compete in the premium sector to earn profits. Scottish beef still enjoys a solid reputation and a premium price would not deter sales in gourmet restaurants, traders said.  However, even that could be difficult as transportation costs mount and consumption may drop due to rising unemployment and inflation.

 

Furthermore, Irish and Argentinian beef have also made inroads into the premium sector as well and Scottish producers would have to put in effort to recover the market, said Rita Piva, a consultant with FFB.

 

Production methods and traceability are two major concerns for Italian consumers, she said.

 

Piva suggested a consortium which guarantees common standards and Scottish trademarks.

 

However, Margaret Stewart, marketing manager of Quality Meat Scotland, said that traceability measures are already well in place and suggested that Scottish producers may want to focus their efforts on domestic markets they have built up markets there over the last ten years rather than to venture into a now unfamiliar market. 

 

QMS recently launched a GBP 1 million (US$1.86 million) campaign to promote Scottish beef to England, presently its major patron.