In his foreword to the 2014/15 annual report and accounts of the Livestock and Meat Commission (LMC), the organisation’s outgoing chair, Pat O’Rourke, has acknowledged that it was a challenging year.

According to O’Rourke, the 2013 horsemeat scandal resulted in a more rigorous focus on market specification, and created issues, such as the number of farm residencies at the point of slaughter. While the validity of penalising cattle with more than four residencies was questioned by producer and mart representatives, it was left to the LMC to try to bring the industry together to resolve the issue. “While a general agreement between all parties was not possible, a constructive way forward was found,” wrote O’Rourke.

The current LMC chair is due to step down this autumn after more than six years in the role.

In his review of activities, LMC chief executive Ian Stevenson noted the importance of accessing new markets for NI beef and lamb. He also highlighted the importance of subsidies as an income support mechanism in the beef and sheep sector and the potential effect of redistribution of direct payments away from cattle and sheep farmers under CAP reform. “The impact on beef and sheep meat production levels will have to be carefully monitored by policymakers. The LMC welcomes that the Agriculture Minister has agreed to keep the option for voluntary coupled support under review,” wrote Stevenson.

During the last financial year, LMC income at £2.21m is down slightly from the previous year as a result of fewer slaughterings of cattle and sheep in NI. Around half of LMC income comes from a slaughter levy (£1.05m) and half (£1.1m) from the Farm Quality Assurance Scheme (FQAS).

Despite income being down slightly, Stevenson states that there is no intention to increase levy rates (£0.20 per head for sheep; £1 per head for cattle) or FQAS membership fees (£55 per year). FQAS income is up on the back of a 5.9% increase in membership over the period. In total, 11,724 farm businesses were members of the scheme at the end of March.

By the year end, a small cash surplus of £14,139 remained, after £1.49m was spent on market development and advertising, and around £600,000 on staff costs and office expenses. The accounts also show that the LMC continues to have significant cash reserves with £1.5m in ‘‘cash at bank and on hand’’, and over £1.7m in short-term bank deposits.