The Scottish Association of Meat Wholesalers (SAMW) has warned that increases to meat inspection charges from Food Standards Scotland (FSS) will “threaten the viability” of meat processors.
SAMW said that Scotland’s red meat sector was set to be hit by the imposition of a “crippling rise” in meat inspection charges from FSS, which has also increased official veterinarian (OV) rates to 10.41% and meat hygiene inspectors (MHIs) to 8.61%.
The increases, which take effect from 30th March, would reportedly hit farmers and consumers alike. SAMW said that operational charges rise by a “relatively modest” 3.9% while indirect costs, which cover operational support and corporate services, have “surged” by 16.3%.
SAMW president Alan Brown commented: “What’s frustrating is that neither FSS nor the Scottish Government have any accountability when it comes to spending other people’s money. They do not need to run a commercial operation efficiently.
“If costs rise, they simply pass them on to our industry. Meanwhile, we’re the ones facing the financial consequences, trying to keep businesses viable and prices down for consumers.”
“FSS and Government don’t feel the pinch. They just pass costs down to us, taking no responsibility to mitigate charges by looking for efficiencies.”
Alan Brown, SAMW
Brown added that the timing and scale of the increases were particularly damaging: “We’ve already lost several Scottish meat businesses in the last year, such as Scotbeef, Bridge of Allan; Donald Russell, Inverurie, and Kings Foods, Aberdeen, to name but a few. Many others are under huge pressure. And yet, these rate hikes were only formally shared with us on 13th March, leaving barely two weeks to prepare before they take effect.
“On the question of operational support and corporate service costs rising by 16.3%, some members, when requesting a meeting with FSS, were told to meet with four officials when surely one person could handle a one-on-one discussion. Maybe that explains the operational support cost hike.
“The problem is, FSS and Government don’t feel the pinch. They just pass costs down to us, taking no responsibility to mitigate charges by looking for efficiencies or the potential of AI to facilitate improvements, thereby bringing the meat inspection process into the current century.
In a letter to Jenni Minto, Minister for Public Health and Women’s Health in the Scottish Government, SAMW requested she:
- Reconsider the scale and timing of the proposed charges
- Review the balance between direct and indirect costs to ensure efficiency and proportionality
- Enhance the Government discount provision on a temporary basis while a more sustainable cost model is developed
- Ensure that any exceptional policy-driven costs – such as those arising from additional public holidays – are met by Government rather than passed to industry
On the final point, SAMW said this related to FSS being “entitled” to charge triple-time rates on Scotland’s World Cup public holiday, requesting that FSS also supports meat costs during the World Cup day off.
Brown continued: “We will work with FSS to review the charging model and allocate costs more proportionately. But without short-term intervention, Scotland’s abattoir sector is at serious risk. Right now, it feels like we’re the only ones who have to worry about the consequences of these decisions.
“Our letter to Minister Minto voices our serious concern at both the proposed increases and the manner in which these new rates were presented to us.
“But with the Scottish Parliamentary Election on 7th May, time for meaningful engagement will not be possible until after the election. We have therefore strongly urged the Minister to pause the FSS increases until these discussions can take place.”
