Kennedy defends need for new conditions on beef calf scheme

In a speech at this year’s Scottish Association of Meat Wholesalers, the Perthshire farmer admitted that the Union has ‘taken a lot of stick’ over the changes to the scheme. However, he pointed out that additional conditions, such as the 410 days calving interval requirement, were needed to fend off challenges from other UK administrations.

He said: “I know there is a lot of criticism off the back of the changes. But look at what is happening in England.

MORE NEWS | Great Glen Challenge surpasses £50,000

MORE NEWS | Edinburgh hosts major European agriculture conference

"If we don’t have the conditions on the new scheme, it can be challenged by other parts of the UK. Northern Ireland is the only other country using coupled support, with much more onerous rules.”

Mr Kennedy also addressed criticism that the Union was too close to the Scottish Government, saying: “We get stick for being close to the Scottish Government, but in my view, you are never close enough.” However, Mr Kennedy also criticised civil servants making decisions about agriculture without understanding the realities on the ground. He described how on his own farm they calved eight heifers at 24 months, resulting in seven live calves but requiring two caesarean sections. Mr Kennedy used this example to show how ‘best practices’ in beef farming are not applicable in all cases, with calving at 24 months being one.

Alastair Donaldson gave a tribute to the late Neil Stoddart who had been a supporter of SAMW for many years (Image: web)

Addressing an audience composed mostly of meat processors, Mr Kennedy noted that the recent strong market for beef and lamb was crucial for building confidence in the sector, adding that the price ‘is getting to where it needs to be, but unless we keep the price at this level, things will be challenging’.

He also stressed that consumers must be prepared to spend more on food, pointing out that household spending on food has risen to 13% of disposable income, up from 8-9% pre-COVID. He compared this to the 1950s, when over 50% of income was spent on food, and said: “I totally accept the cost-of-living crisis. The government should be helping these people.

"But one pound spent in agriculture gives you six pounds back to the economy.”

The conference also heard from QMS chief executive Sarah Miller, who presented findings from a new report on the decline of the beef herd. Mrs Miller stated: “There are hundreds of different reasons why cattle are going off. But rising productivity and increased beef from the dairy herd are both masking the decline, but we are now at a stage where there is limited growth to come from the dairy herd. So, we asked the question, what does this mean from an economic impact perspective?”

Sarah Miller chief executive of QMS (Image: web)

“If we don’t act, there will be a long-term steady decline in suckler cows, with processors increasingly operating below their potential.”

Despite declining cattle numbers, Mrs Miller highlighted that demand for beef remains firm. With a growing population, more meat will be needed to meet market demands.

QMS suggests increasing the national calving percentage from 91.5 calves per 100 cows to 93.5 as one way to combat the decline. Reducing the number of store cattle sent to England could also help better utilise processing capacity in Scotland.

Mrs Miller also noted that a key reason for businesses stopping cattle is the lack of succession. The survey showed that farmers leaving the sector are typically in their late 50s with no succession plan, while those looking to expand tend to be younger, with an average age of 49, employing an average of 1.75 staff, and often having a more diversified enterprise base that supports investment in growth.