Report reveals challenges

The challenge farmers and crofters face in turning a profit without subsidy support is highlighted in Quality Meat Scotland’s (QMS) latest Enterprise Costings document.

The publication highlights the variation in financial and technical performance between Scotland’s top third and bottom third producers.

QMS head of economics services, Stuart Ashworth, said the document included data for the 2016 calf and lamb crop based on a survey of producers.

It revealed that a little over a third of suckler herds and less than a third of store cattle finishers achieved a positive net margin, said Mr Ashworth.

He said hill ewe flocks struggled and only around one in 10 achieved a positive margin.

However, profitability improved significantly among upland and low-ground flocks with 66% and 85% achieving positive net margins respectively.

QMS chairman Jim McLaren said farmers and crofters should use the data in the costings document to benchmark their businesses and see where there was scope for technical and financial improvements – a vital tool in light of the challenges posed by Brexit.

Hill ewe flocks have struggled, says the QMS document.