POST-BREXIT trading requirements have taken their toll on the UK's red meat sector, with disruptions felt across the whole supply chain, according to recently published UK trade data for January.

The combination of new trading rules and the ongoing pandemic has slowed down trade – but despite these challenges, farmgate prices for beef and sheep have held firm.

“Trade has also been affected by pre-emptive measures taken in December 2020 and changed demand in export markets as a result of measures taken to control the spread of Covid," said Quality Meat Scotland's economic services director Stuart Ashworth, "particularly the closure of out-of-home eating across Europe and restrictions by some non-EU countries on taking product from abattoirs and processors who have had Covid outbreaks among their workforces.”

Beef exports to the European Union during January fell by two thirds from the same time last year, while sheep meat exports fell 40% and fresh pork exports fell 70%.

“Reduced exports can impact on the need for imports and that was the case during January with beef imports falling 18% and fresh pig meat imports falling 47% while sheep meat imports were unchanged on year earlier levels during January," Mr Ashworth continued. "However, it should be noted that sheep meat imports in January 2020 were already 30% lower than the average for the previous three years.”

Although official trade volumes for February and March are not available, the expectation is that there has been small increases in exports as traders become more familiar with the administrative requirements of trading in a Brexit world.

Many traders have also reported that demand continues to be stalled by the ongoing pandemic and Covid control measures on consumer shopping behaviour in export markets and the firm prices for sheep and cattle in the UK making these products uncompetitive.

“Scottish traders have reported exports running at 20 to 25% of year earlier levels in January, improving to 40% of previous levels in February. This is estimated to have reduced beef and lamb export revenues for Scottish traders from over £10m in the first two months of 2020 down towards the £3m mark in the same period of 2021,” said Mr Ashworth.

Slaughter data for January and February shows that the volume of beef produced in UK abattoirs was 2% lower than in 2020 while sheep meat volumes fell 15%.

“As a consequence of reduced volumes, the continuing firm retail demand set against beef and sheep meat on the UK market has contributed to higher farmgate prices and indeed a lower requirement to export sheep meat to balance the market," continued Mr Ashworth. "In contrast, UK abattoir volumes of pigmeat climbed ahead of year earlier levels in February after lower production in January which have contributed to some cooling of pig prices through February as will constraints on pig meat exports to China from plants affected by Covid.

“The announcement of delays in the introduction of UK border inspection and control measures on imported EU meat from April to October may yet prove a significant influence on the ability to import beef in particular. Nevertheless, lower stock numbers in Scotland combined with lower numbers of one to two year old cattle in Ireland leave producers in a strong negotiating position,” he concluded.