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Annual Review 2013/14

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Annual Review 2013/14 Annual Review 2013/14 Board Members Jim McLaren, Chairman (appointed April 2011) John Craig (appointed April 2011) Ronnie Eunson (appointed April 2013) Julie Fitzpatrick (appointed April 2014) Sarah Mackie (appointed April 2014) Alan McNaughton (reappointed April 2014) George Milne (appointed April 2014) John Scott (appointed April 2011) Philip Sleigh (appointed April 2014) Louise Welsh (appointed April 2013) Johnny Mackey (stepped down December 2013) Gordon McKen (appointment ended March 2014) Robert Parker (appointment ended March 2014) Andrew Peddie (appointment ended March 2014) David Sole (stepped down May 2014) Professor Phil Thomas (appointment ended March 2014) Quality Meat Scotland – Staff ’Uel Morton, Chief Executive Susan Kinniburgh, Executive Assistant Carol McLaren, Head of Communications Claire Morrison, Communications and Events Manager Jennifer Robertson, Health and Education Coordinator Jenni Henderson, Health Education Executive Johnny Mackey, Head of Industry Development Michael Blanche, Knowledge Transfer Specialist Robert Gilchrist, Knowledge Transfer Specialist Allan Ward, Pig Specialist Stuart Ashworth, Head of Economics Services Iain Macdonald, Economics Analyst Laurent Vernet, Head of Marketing Jack Broussine, Marketing Executive Suzie Carlaw, Marketing Controller Margaret Stewart, Marketing Manager Suzanne Woodman, Brands Integrity Manager Sylvia Shepherd, Corporate Services Manager Debbie Phillips, Finance Assistant Kirsty McCormack, Office Coordinator Market Development Agents (Part-funded, fixed-term agents supported by Scottish Government) David Chiffoleau, France Rita Piva, Italy Huub Schoemaker supported by Ilona Annema, Benelux Peter Toholt, Germany Jakob True supported by Anette Stenebrant, Nordic Countries ISSN No: 2051-2805 Cover image: Many thanks to the McNee family who travelled to London to promote the Scotch Beef PGI campaign and the UN’s ”International Year of Family Farming”. 2 Quality Meat Scotland Contents 4 Chairman’s Review A review of the 2013/2014 year and the key opportunities and challenges facing the Scottish red meat industry, by Jim McLaren, QMS Chairman. 5 QMS Strategy QMS’s top-line strategy is to shape a sustainable and prospering Scottish red meat industry. 6 Chief Executive’s Review 13 ‘Uel Morton, QMS Chief Executive, gives a taste of the range of activities undertaken by QMS on behalf of the Scottish red meat industry. 15 Communications QMS’s communications workload 7 Industry Development involves communicating with a range The industry development team at of different target audiences – from QMS focuses on activities aimed at farmers, processors and butchers improving the efficiency, profitability and to consumers and journalists. The sustainability of livestock farmers and communications workload includes others in the red meat chain in Scotland. public relations activity in support of A wide range of activities were the brands and ensuring businesses undertaken during the year – from the involved in Scottish red meat “Monitor Farm Programme” to more production benefit from the latest focused, smaller-scale workshops at research and statistics. locations throughout Scotland. 7 17 Assurance 10 Market Development The pioneering schemes that Effective marketing to increase sales underpin the Scotch Beef, Scotch and drive consumer awareness of Lamb and Specially Selected Pork the brands – Scotch Beef PGI, Scotch labels are among the best in the Lamb PGI and Specially Selected Pork. world and cover the entire lifespan of animals born in Scotland. During the year under review, QMS undertook a range of marketing 18 Economics Services activities on behalf of the Scottish The Economics Services team at QMS 18 15 red meat industry, with strong ensures businesses involved in the campaigns which are carefully Scottish red meat industry benefit targeted to deliver strong results. from the latest industry statistics. Publications produced include the 13 Health and Education “Scottish Red Meat Industry Profile” QMS’s health and education and “Cattle and Sheep Enterprise activities are aimed at highlighting Profitability in Scotland”. the importance of red meat in a healthy diet. During the year 20 Financials a number of new activities and partnerships were established. 22 Committees 10 Annual Review 2013/14 3 Chairman’s Review Jim McLaren Global demand continues Livestock production in Scotland is moving to grow – this sampling activity in Asia was into a new era following reform of the undertaken in collaboration Common Agricultural Policy (CAP), and with Scotland Food & Drink. I am confident producers’ apprehension will be steadily replaced by a more focused, driven industry. he sense of trepidation earlier in 2014 was particularly keenly felt in Tthe beef sector, where most analysis Beef Efficiency Scheme Board members of the predicted CAP changes suggested The £45 million “Beef Efficiency Scheme” Four new QMS board members were a significant reduction in payments announced by Rural Affairs Secretary welcomed onto the board in April 2014. by the end of the transition period. Richard Lochhead in June 2014 is Our thanks go to Professor Phil Thomas, welcome news for our industry. We now have more clarity on the Robert Parker, Andrew Peddie and Gordon way forward, and I am confident The package was developed in response to McKen who stood down and handed over in producers’ ability to get to grips recommendations by the Beef 2020 group the reins to Professor Julie Fitzpatrick, Sarah with what the changes will mean set up by the Scottish Government at the Mackie, Philip Sleigh and George Milne. for their individual businesses. end of last year. The aim of the scheme The diversity of the QMS board is is to increase the efficiency of production one of its key strengths, and the new Strong global influences of beef from the Scottish farms through board members bring a great deal Without doubt our industry still has increases in productivity and reductions of experience and knowledge. many challenges to face, but the long- in wasteful and costly emissions. term prospects for the Scottish red In a separate development, the increased meat industry remain very positive. Consumer trends targeting and funding associated with It is imperative that QMS continues to Global demand continues to grow for the Scottish Beef Calf Scheme, and closely monitor, and respond to, consumer the top-quality Scotch Beef PGI, Scotch the additional top-up for calves born purchasing trends. The period under Lamb PGI and Specially Selected Pork on the islands, will help to mitigate review saw consumers being careful we produce. Recent announcements on some of the impact of the support about what they spent their money on negotiations to open up the China market reductions for beef farmers. and what they deem to be best value. for beef are further evidence of that. Furthermore, the addition of a coupled Consumers in our target markets are After two years of decline in the sow herd, support scheme for sheep, targeted looking for best value red meat to caused by the closure of pig slaughtering at the most fragile areas of the provide guarantees of the integrity and facilities in Broxburn and considerable country, should help to maintain stock traceability of the products they buy – they pressure on producer margins, numbers numbers in these areas where sheep expect it to have been reared to a high steadied in 2013. This was helped production plays an important role in standard of welfare and to be produced by the combination of an increase in social and economic sustainability. in a natural Scottish environment. producer prices and a sharp decline in The Beef 2020 vision is one of a confident feed costs as the year progressed. market-driven, grass-based cattle industry Year of Food and Drink 2015 There are some welcome indications using leading-edge technologies capable We are preparing to celebrate Scotland’s that producers are rebuilding herds of delivering profitably to the home and Year of Food and Drink in 2015, and and investing to take advantage of the world market high-provenance, quality our industry’s world-renowned brands – better margins achievable, though we beef from sustainable production systems. Scotch Beef PGI, Scotch Lamb PGI must remain vigilant to prevent the The recommendations set out in the and Specially Selected Pork – are set threat of new diseases from overseas. report, which are designed to be owned to play an important part in that. The UK is around 60% self-sufficient and adopted by the Scottish beef industry, Scotland’s red meat industry is quick in pigmeat, and around a quarter of aim to facilitate collaboration, profitability, to move on opportunity, and I have domestic production is exported each confidence and investment at every stage no doubts that a strong UK market, year, so external factors – such as the of the Scottish red meat supply chain – coupled with the growing global demand strength of the pound – can have a factors which are key in ensuring a future for red meat and premium products, significant influence on the UK market. marked by sustainable, profitable growth. points to an encouraging future. 4 Quality Meat Scotland QMS Strategy Overall strategy Critical success factors To shape a sustainable and prospering Scottish Critical success factors for the organisation are to: red meat industry. 1) Enhance awareness of, demand for and value of Scotch brands 2) Deliver industry benefits from QMS initiatives Specific strategies 3) Retain public and Government support for red QMS will achieve
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