October 6, 2006

 

Scottish beef production to fall as herd ages

  

 

UK beef producers are enjoying prices for their cattle not seen for more than a decade, with both prime animals and suckled calves selling for around GBP100 per head more than a year ago, local media reported.

 

The Scottish beef breeding herd defied expectations of a much diminished herd as reforms in the Common Agricultural Policy decoupled support from production.

 

Now, the Scottish Executive's June census indicate that the herd has only fallen by 1.5 percent to 484,960 cows.

 

However, one aspect farmers need to be aware of is the age of their herds, according to John Bell, the technical representative with the Scottish Beef Cattle Association.

 

Bell said the industry is still dealing with the effects from the over 30 months scheme which made farmers keep cows longer due to low compensation rates. The end of the OTMS last October allows beef from cattle born after August 1, 1996 to re-enter the food chain.

 

This has led to a higher average age of herds and that of beef.

 

Farmers now face increasing pressure to get rid of older cows as the compensation rate drops yearly. After December 31, 2008 farmers are likely to incur a charge for disposing of these cattle.

 

Bell calculates there are still about half a million cattle, mostly cows, still alive which were born prior to August 1, 1996.

 

Those who hang on to older cows may find it difficult to source suitable replacements, as there were 5 percent fewer heifers retained for future breeding this year. The number of all cattle under two years of age has fallen by almost 6 percent, Bell remarked.

 

This all points to a reduction in Scottish beef production over the next two years, he said.