7 March 2008

2 minute read

Europe

The survey, carried out annually, gives an outline of all agricultural activity in Scotland. Today’s results show a decrease in numbers of animals within all red meat sectors, a slight increase in poultry numbers and an overall increase in wheat and barley areas.

Specifically, the number of cattle fell by 2.4 per cent, the number of sheep decreased by 1.6 per cent and pig numbers decreased by 4.2 per cent over the course of the year. However, NFUS has stressed that a combination of increasing feed, fuel and fertiliser bills since the survey was undertaken will have exacerbated the pressures on individual farms.

James Withers, Acting Chief Executive of NFU Scotland, said: “The drop in cattle, sheep and pig numbers mirrors what we’re hearing on the ground. This could have a lasting effect on the Scottish red meat industry and retailers need to be aware that they could be sleep-walking in to a supply problem unless they act now. Too many of them seem to think they can afford to wait for a shortage before lifting prices. In an industry where production cycles are measured in years, not days or weeks, that is a strategy which is doomed to failure.

“These figures don’t take account of the full effect of rises in feed, fuel and fertiliser prices. Also, when you over a longer period the trend is more worrying. A recent survey by Highlands and Islands Enterprise has pinpointed a 20 per cent drop in breeding sheep numbers in Argyll alone. We are not talking about people downsizing, these are people getting out of the industry altogether. The pressures on the pig industry were also clear for all to see in London yesterday.

“The irony is that there is massive short-term pressure but the long-term outlook has rarely been more positive. The same factors which are driving up input costs – particularly increases in world population and affluence – are the same factors which mean that global demand for red meat consumption is only going in one direction. On top of that global picture, there is increasing domestic demand for local, quality food. However, unless the supply chain recognises the increases in inputs costs right now, there is a real danger that many of our red meat businesses won’t be around to see this more promising world.

“The increases in cereal areas show that markets can react properly. Price rises have injected fresh confidence into a sector which is now seeing a return to profitability for the first time in a decade. That now needs to happen across the rest of the industry.”

TheCattleSite News Desk