NFU Scotland to meet with major retailers at Royal Highland Show

NFU Scotland will use the nation’s biggest agricultural showcase – The Royal Highland Show – to take up livestock producer concerns with major retailers.

The Ingliston event, which kicks off on Thursday 23 June and runs until Sunday 26 June, will see the Union challenge retailers on the market share Scottish farmers are receiving for beef cattle and also encourage supermarkets to quickly switchover to stocking shelves with new season Scotch lamb.

For more than 12 months now, less than half of the price shoppers pay for Scotch beef ends up going back to the farmgate.  In addition, many livestock farmers in Scotland have expressed concern that changes in weight restrictions at abattoirs have had a negative impact on farm. These tighter specifications mean that more farmers are receiving penalties when animals are not meeting the grade. As a result, the average price a farmer receives per finished animal has been falling.

Livestock Chairman Charlie Adam said: “The Union is challenging retailers and their processors to ensure that prices paid for cattle cover the costs of production. The vast majority of the costs involved in producing Scotch beef are fixed, and come from the cost involved in looking after the cow and rearing the calf.

“For those involved in finishing cattle, cutting the specified weights required at abattoirs must not be used as an opportunity to cut prices to farmers by the back door. We understand that it is retailers who are pushing for lighter carcases which in turn is increasing penalties for heavier animals and that is something we will be keen to discuss with them at the Highland.

“Regardless of these changes in beef specifications, there remains a need for retailers to ensure that the majority of the money that consumers spend on quality Scotch beef actually makes it back to those most involved in producing the product.  I believe shoppers would be astonished to learn that less than half the retail price for beef goes back to farmers.”  

Also at the Highland, NFU Scotland will continue to discuss with all retailers their commitment to Scotch and British lamb.  NFU Scotland has already successfully worked with Marks and Spencer, Sainsburys and the Co-operative to extend the period in which they source home-produced lamb.  This builds on the year-round commitment shown by Morrisons, Aldi and Lidl.  

With new season Scotch lamb now starting to come forward, NFU Scotland will continue to request that the largest retailers work to drive demand for lamb produced in Scotland and the UK.

Mr Adam said: “We produce some of the highest quality lamb in the world here in Scotland and supplies for the 2016 season are starting to build.  

“We have already worked successfully with a number of retailers in building their commitment to sourcing lamb from Scotland and the UK but there are some major players who could do better.

“The Highland Show remains a massive showcase for Scottish produce and we will be using that as a platform to encourage supermarkets to not only increase their offering of Scottish produce, but to ensure that in times of falling farm incomes and tightening margins, those who carry the bulk of the risk when it comes to producing food receive a fair price for their efforts.”

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Contact Bob Carruth on 0131 472 4006