Scotland’s red meat and offal sold outside the UK grew to £137 million in the year from August 2023 to July 2024, according to Quality Meat Scotland’s annual export survey.
Previous surveys have never recorded a value above £100 million and, while some of this growth will reflect price inflation, it also points to a greater focus on exports across Scotland’s red meat processing sector, QMS said.
QMS published the results as it prepares for SIAL Paris, the world’s leading food and beverage trade fair—results from the QMS eveal a remarkable rise in th
Iain Macdonald, QMS Market Intelligence Manager, said: “Our enterprising companies are looking beyond the additional costs and complexities of trading with EU countries from outside the single market, seeking out opportunities which are more profitable than offered by the domestic market.
“Exporters are clearly taking advantage of tight EU beef and lamb markets, where demand for premium products is strong but local supply is declining.
“Export sales remain heavily dominated by EU countries and trade took place with sixteen of the twenty-seven member states. In fact, more than 95% of overall export revenues were generated in EU markets, climbing to 99% for Scotch Lamb.”
The survey also showed Scotland serviced twelve different non-EU markets. Switzerland remained a key outlet for high-value cuts of beef and lamb, while the majority of non-European countries primarily purchased fifth-quarter by-products such as beef tongue and lamb liver. Notably, multiple companies successfully shipped beef to Hong Kong, which tended to be at the lower end of the value scale, underpinning carcase balance.
With operating margins in the processing sector often as low as 2%, Iain added: “These markets are vital for generating additional revenue beyond what can be achieved in the home market, aiding in carcase balance and supporting the procurement of livestock from Scotland’s cattle, sheep, and pig producers.”
The QMS survey indicates that total sales of beef generated around £84 million for exporters.
Tom Gibson, Director of Market Development at Quality Meat Scotland, added: “SIAL Paris is a critical platform for us to showcase the exceptional quality of Scotland’s red meat industry to a global audience. It provides an invaluable opportunity to strengthen existing partnerships and forge new connections that will further enhance Scotland’s presence in international markets and promote Scotland as the choice for premium red meat.”
SIAL Paris will take place from 15 to 19 October 2024. Follow @qmscotland on social for live coverage of SIAL.