Speaking recently at the launch of Quality Meat Scotland’s (QMS) Cattle and Sheep Enterprise Profitability in Scotland publication, Stuart Ashworth, QMS director of economics services, said it had never been more important for farmers to benchmark their businesses and then act on what this reveals.

The QMS publication, also known as the Enterprise Costings, covers the 2017 calf and lamb crop, and is based on a survey of beef and lamb producers.

It omits CAP support payments, except for those which are directly linked to production, and strongly highlights the technical and financial performance variation that exists when comparing Scotland’s top third producers and the bottom third.

The top producers continue to be characterised by high physical and/or technical performance, strong control over costs and the ability to maximise returns from the market place.

Achieving a positive margin

According to Mr Ashworth, 44% of suckler herds in the survey achieved a positive net margin. This is an increase from 36% last year and is much higher than the 2014 and 2015 calf crop years.

“Margins among store finishers also improved considerably on the year, with 43% of the businesses surveyed achieving a positive net margin – up from 30% of businesses last year,” said Mr Ashworth.

The proportion of hill ewe flocks making a positive net margin increased from 10% last year to 14% this year, returning to the levels seen in the 2015 lamb crop year.

“However, net profitability among upland flocks slipped to 56% of enterprises surveyed achieving a positive net margin for their 2017 lamb crop compared with 68% per cent recording a positive net margin last year.”

“Similarly, lowground flocks also saw a slight deterioration in margins, with 80% achieving a positive net margin for the 2017 lamb crop compared with 85% of lowground flocks surveyed achieving a positive net for the 2016 lamb crop.”

Store lamb finishers reported a considerable improvement in margins, said Mr Ashworth, with all those surveyed achieving a positive net margin compared with only 38% of the sample last year.

“However, despite this apparent improvement in returns, those businesses reporting positive net margins still struggled to deliver a fair return for labour and capital,” he observed.

The publication is available in the documents library on the QMS website www.qmscotland.co.uk . A printed copy can be requested by emailing info@qmscotland.co.uk

Scotch Beef PGI and seafood showcased at Asia events

QMS and Seafood Scotland have joined forces to host an exclusive showcase Scotch Surf and Turf dinner, kicking off a week of trade promotion activities in Singapore and Hong Kong.

The exclusive dinner was held at the Artemis in Singapore and was attended by a large group of influential guests including foodservice and industry buyers, as well as the British High Commissioner to Singapore, Mr Scott Wightman.

Guests enjoyed Scotland’s fresh west coast langoustine, North Sea cod, King scallops and Loch Fyne oysters, along with exceptional grass-fed Scotch Ribeye Beef PGI which had been dry-aged for a total of 21 days. As part of the Asia promotional activity, which aims to establish new trade relationships and secure orders for Scottish suppliers, hospitality learning journeys and meet-the-buyer sessions have been arranged for Scottish companies in Singapore and Hong Kong. An exclusive Surf and Turf dinner will also be held in Hong Kong.

Emily Symonds of the market development team at QMS is attending these events said that the market in Asia offers significant potential for Scotch Beef sales growth in the coming years. She said: “Consumers in Singapore and Hong Kong have a genuine appetite for grass-fed, hormone-free Scotch Beef so these key markets certainly offer exciting opportunities for the future.”

Natalie Bell, Head of trade marketing Asia, Europe, Middle East for Seafood Scotland added: “Seafood Scotland are delighted to be working in partnership with QMS once again on our Scotch Surf and Turf series.

“By celebrating the best of what Scotland has to offer, from both land and sea, we aim to increase trade, establish new trade relationships and secure interest in future orders for suppliers.”

Scotch Beef on the menu for World Cup chefs

A team of top Scottish chefs served up a winning menu at Queen Margaret University recently in preparation for the Villeroy & Boch Culinary World Cup which kicks off in Luxembourg later this month.

One hundred lucky diners were treated to a three-course meal which showcased the very best of Scottish hospitality and cuisine and featured Scotch Beef PGI as the main course.

The team of seven chefs will compete in a cook-off against over 45 teams at the Culinary World Cup and will have their skills and nerves tested fully amid the frenzied atmosphere of the event, which takes place over five days.

Kevin MacGillivray, catering and hospitality manager at The National Trust of Scotland said: “It is an extremely exciting time for the Federation of Chefs Scotland as we make the final preparations for the Culinary World Cup.

“The team are really looking forward to showcasing some of Scotland’s finest produce and using Scotch Beef as the main event.”

The Culinary World Cup takes place in Luxembourg on 24-28 November 2018.

For more Scotch Beef information and recipe inspiration, visit www.scotchkitchen.com or visit the Scotch Kitchen on Facebook, Twitter and Instagram.