Annual Review 2012 /13 Contents Board Members Jim McLaren, Chairman (appointed April 2011) John Craig (appointed April 2011) Ronnie Eunson (appointed April 2013) Johnny Mackey (appointed April 2011) Gordon McKen, MBE, TD (reappointed April 2013) Alan McNaughton (appointed November 2010) Robert Parker (reappointed April 2013) Andrew Peddie (reappointed April 2013) John Scott (appointed April 2011) David Sole, OBE (appointed April 2011) Phil Thomas (reappointed April 2013) The growing trend for consumers Louise Welsh (appointed April 2013) to search for recipes using iPads Henry Graham (appointment ended March 2013) and iPhones has prompted QMS John Gregor (appointment ended March 2013) to place unprecedented focus on 19 digital media in its latest campaigns. Quality Meat Scotland – Staff 4 Chairman’s review 17 Health and education Jim McLaren, QMS Chairman, QMS’s health and education activities ’Uel Morton, Chief Executive reviews the 2012/2013 year are aimed at highlighting the Susan Kinniburgh, Executive Assistant and the key opportunities and importance of red meat in a healthy Carol McLaren, Head of Communications challenges facing the Scottish diet. During the year a number Claire Morrison, Communications and Events Manager red meat industry. of promising new activities and Jennifer Robertson, Health and Education Coordinator partnerships were initiated. Andy McGowan, Head of Industry Development 6 QMS strategy Cameron Craigie, Carcase and Meat Quality Specialist (fixed-term contract) QMS’s top line strategy is to shape 19 Communications Charlotte Maltin, Science and Innovation Manager a sustainable and prospering QMS has a wide range of different Ian MacDougall, Technical Projects Manager Scottish red meat industry. target audiences to reach given Kathy Peebles, Livestock Development Manager the breadth of the activities the 7 Chief Executive’s organisation undertakes. The Allan Ward, Pig Development Manager review communications team works hard to Stuart Ashworth, Head of Economics Services ‘Uel Morton, QMS Chief ensure the most effective channels Iain Macdonald, Economics Analyst Executive, gives some highlights are found to deliver this wide variety Laurent Vernet, Head of Marketing of the wide-ranging activities of information to these audiences. Jack Broussine, Marketing Executive 4 undertaken by QMS on behalf of 21 Assurance Suzie Carlaw, Marketing Controller the Scottish red meat industry. Margaret Stewart, Marketing Manager The pioneering schemes which Sylvia Shepherd, Corporate Services Manager 9 Industry development underpin the Scotch Beef PGI, Scotch Debbie Kerr, Finance Assistant The industry development team Lamb PGI and Specially Selected Pork Kirsty McCormack, Office Coordinator at QMS focuses on activities aimed labels are among the best in the at improving the efficiency, world and cover the entire lifespan profitability and sustainability of of animals born in Scotland. Market Development Agents livestock farmers and others in the 22 Economics Services (Part-funded, fixed-term agents supported by Scottish Government) 9 13 red meat chain in Scotland. QMS’s Economics Services team David Chiffoleau, France The activities undertaken range focuses on ensuring businesses Rita Piva, Italy from scientific projects to practical involved in the Scottish red meat Huub Schoemaker, Benelux hands-on workshops at locations production chain benefit from the Peter Toholt, Germany throughout Scotland. latest industry statistics. Regular Jakob True, Nordic Countries market updates are published online 13 Market development and in the media and an annual Effective marketing to increase sales industry overview and benchmarking ISSN No: 2051-2805 and underpin consumer awareness publications are also produced. Cover image: Cattle pictured and understanding is particularly on the Kintyre monitor farm 24 Financials run by Duncan Macalister. important in times of economic 17 belt-tightening. 26 Committees 2 Quality Meat Scotland Annual Review 2012/13 3 From left; Paul Anderson, Scottish SPCA Chief Inspector Edinburgh Chairman’s Region; Craig Bonnar, Divisional Retail Director ASDA; Richard Lochhead, Rural Affairs Cabinet Review Secretary; Stuart Menzies, Director Meat and Poultry ASDA; and Jim McLaren, Jim McLaren Chairman of QMS. Scottish Secretary of State, Michael Moore visited Lurgan Farm near Aberfeldy There are many reasons where he heard about the challenges facing the to feel confident about Scottish sheep industry, including Scotland’s “lost the future of the Scottish levy”. Pictured from left are farmer Martin red meat industry despite Kennedy, Michael Moore the Secretary of State, Jim the many challenges McLaren, QMS, and ’Uel of the past year – from Morton, QMS. the exceptionally wet weather to the significant re-structuring which took place in the Scottish primary processing sector. One of Scotland’s favourite he horsemeat issue dominated the The licensing process will see quality, high health Scottish livestock, it The Cabinet Secretary for Rural Affairs TV weather presenters, Cat Cubie, joined the store headlines at the start of the year traceability and labelling audits being does mean yet more animals are being and the Environment, Richard Lochhead, sampling event in Tesco and clearly illustrated that competing carried out on companies using the slaughtered outwith Scotland, resulting has also announced the appointment in Dumfries to encourage T shoppers to re-discover on price is a race to the bottom, in which brands. Traceability audits will be further in a further erosion of levy income. of four new board members who the delicious versatility there can be no winners. The scene was enhanced with the use of isotope This also adds to the shortage of will take up their appointments on of Scotch Lamb PGI. set for the adulteration of beef with testing to confirm provenance. livestock to supply Scottish abattoirs, which April 1 2014. The new appointees are horsemeat by intense price competition, are already struggling to source the critical Professor Julie Fitzpatrick, Sarah Mackie, Processor margins coupled with long, complex supply chains. mass required to operate profitably. Part of George Milne and Philip Sleigh. The past year has seen considerable Our industry in Scotland has made the solution is an increase in the sustainable We have a compelling message in change take place in our processing a major commitment to traceability and production of livestock to ensure we have terms of what sets our brands apart – sector, and the margins of many quality assurance from farm to processor the critical mass our industry needs. from the world-leading quality assurance processors remain incredibly tight. which puts our brands – Scotch Beef The announcement in February of behind the Scotch Beef PGI, Scotch Key to the future is achieving critical mass PGI, Scotch Lamb PGI and Specially £1 million funding from the Scottish Lamb PGI and Specially Selected Pork of raw material and it is vital we maintain Selected Pork – in a strong position at Government to strengthen the Scotch labels to our high animal health and the livestock numbers needed to satisfy the times such as the horsemeat fraud. brands still further was very welcome. welfare and our natural, grass-based demand for our world-acclaimed brands. The good news is that some retailers This recognition of the importance of brand cattle and sheep production systems. In the meantime the global are increasingly recognising this and choosing strength to our industry’s future further population continues to grow and with It is vital we maintain the to display the Scotch logos, while consumers underlines our Government’s commitment it the demand for quality red meat. livestock numbers needed are increasingly seeking out products to – and knowledge of – our vital sector. QMS Chairman, Jim QMS’s Scottish Red Meat Industry Profile to satisfy the demand for our McLaren pictured at with strong provenance and traceability. After the closure of Halls of Broxburn, 2013 reveals our industry contributed £2.1 world-acclaimed brands. the launch of a new the Scottish pig industry has been publication highlighting New licensing scheme billion to Scotland’s economy last year boosted by announcements by two major In this, the Year of Natural Scotland we the industry’s positive A new licensing scheme for secondary and supports 50,000 jobs in Scotland. sustainability messages. retailers – ASDA and ALDI – that they are pulling out all the stops to deliver processors – meat wholesalers and However, this piece of work by are committing to the Specially Selected clarity on the very positive sustainability manufacturers – has been introduced to our Economics Services team also Pork label approved by the Scottish role delivered by the production of add weight to the rigorous requirements brings sharply into focus the knife- SPCA, which highlights the high welfare Scotch Beef PGI and Scotch Lamb PGI. already in place to guarantee the edge margins currently being endured standard of pigs on Scottish farms. Indeed Scottish livestock producers are authenticity of Scotch Beef PGI, Scotch by many in the processing sector. at the heart of our country’s sustainability – Lamb PGI and Specially Selected Pork. QMS also continues to support the Strong future environmental, social and economic – and The licensing scheme is a constructive Scottish Government’s commitment During the past year two new members - they deserve recognition as the unsung extension to the steps already in place to deliver a positive result