Quality Meat Scotland (QMS) has published the results of its annual export survey, reporting a rise in the total value of Scotland’s red meat and offal.
The value of red meat and offal sold outside the UK rose to £137 million in the year from August 2023 to July 2024. QMS said previous surveys had “never recorded a value above £100 million”, and found that while some growth reflected price inflation, it also pointed to a “greater focus” on exports across Scotland’s red meat processing sector.
Iain Macdonald, QMS market intelligence manager, commented: “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.”
“More than 95% of overall export revenues were generated in EU markets.”
Iain Macdonald, QMS market intelligence manager
“Export sales remain heavily dominated by EU countries and trade took place with 16 of the 27 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 highlighted that Scotland serviced 12 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. QMS also found that multiple companies successfully shipped beef to Hong Kong, which “tended to be at the lower end of the value scale”, underpinning carcase balance.
Macdonald highlighted that operating margins in the processing sector were often as low as 2%. He said: “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.”
Scotch Beef exports trade above average prices
The QMS survey indicated that total sales of beef generated around £84 million for exporters. Exports of Scotch Beef alone accounted for £43 million, or 51% of this total, with the average value per tonne of Scotch Beef exported being approximately £2.10/kg higher than that of non-Scotch Beef. QMS said this premium partly reflects the balance of cuts being traded.
Primary export destinations for Scotch Beef were France, Italy and the Netherlands, collectively accounting for 75% of the total. Belgium and Germany also played “significant roles”, with Scotch Beef exports to these countries trading at well above average prices, which QMS said indicated a greater focus on higher-value products.
Macdonald continued: “Furthermore, some smaller markets exhibited trade in high-value cuts, highlighting the opportunity for premium Scotch Beef sales to discerning buyers in a competitive global market.
“Cross-border value chains are also crucial in the red meat processing sector. While not included in the export figures, Scotland’s processing companies reported shipments of beef to Northern Ireland, reflecting movements to specialist cutting and packing sites, with the meat then returning to Scotland for retail. Additionally, some beef sold to wholesalers in England is further processed into specific cuts and exported from their specialist production sites.
“With EU demand for lamb remaining firm and production decreasing, Scottish processors capitalised on this opportunity, with export sales surging to £45 million. Lamb exports accounted for an increased 31.5% share of abattoir turnover during this period, up from 17% the previous year. Beef sales are estimated to have reached 11% of turnover, up from 9.5% a year earlier. France remained the most important overseas market for Scotch Lamb, followed by Germany and Belgium.”
Offal plays “crucial role” in maintaining carcase balance
The survey found that sales of offal to overseas customers continued to play a “crucial role” in maintaining carcase balance for Scotland’s red meat processors, generating £8m of sales.
Notably, 63% of this value was generated from EU markets, with average prices slightly higher than those from non-EU destinations. France, Germany, and Hong Kong were the primary outlets for Scottish offal.
Tom Gibson, director of market development at Quality Meat Scotland (QMS), commented: “These results highlight the resilience of our red meat sector and the continued strength of our relationships with European importers.
“Despite the ongoing challenges posed by Brexit, our exporters have adapted and thrived, demonstrating the premium quality of Scotch Beef and Scotch Lamb.”
