Brexit casts shadow over profitable year for QMS

On the surface, Scotland’s red meat promotional body, Quality Meat Scotland (QMS) is doing well financially turning in a small profit on a £6.4 million turnover in the year ended 31 March. Of that total almost £4m came from levies raised from producers and processors.

The tricky point, as highlighted yesterday by QMS chairman Jim Mclaren, will come in March 2019 when it will cease to receive money from Europe. Currently the monitor farm programme – costing £1.2m – is funded with European cash and up until March this year QMS also received upwards of half a million pounds annually in financial help from Europe for its various marketing efforts.

Mclaren said QMS were in dialogue with both the Scottish and UK government over the future funding but admitted that, as no -one knows what post Brexit policies will exist, that was where the matter rested.

In recent years, QMS has built its sales on the PGI status of Scotch Beef, Scotch Lamb and Scottish Selected Pork. This designation 0 Jim Mclaren warned of post-brexit cash doubts indicating the country of origin of the meat is now under threat with the departure of the UK from the EU which created the PGI badge to help promote iconic foods.

Laurent Vernet, QMS head of marketing said that, along with representatives of the Scottish salmon industry and Scotch whisky distillers who also hold PGI status, discussions were ongoing with the EU to retain the badge even if in the future, it would come as a “Third Country PGI.”

One piece of good news for QMS is that there looks to be progress on the long running saga of levy repatriation. This amounts to more than £1m annually and occurs when livestock born, bred and finished in Scotland travel to abattoirs in England and Wales where the levies are collected.

Alan Clarke, the recently appointed chief executive of QMS, said that talks were progressingwithmeatpromotion bodies south of the Border with a view to spending this money jointly on meat promotion or on supporting representation by meat processors at food fairs. He expected decisions on this to be made by April 2018.

Clarke also spoke in support of Scotland’s beef producers getting involved in a scheme which would provide total traceabilty through taking DNA samples.

He admitted the idea was still in embryonic form but believed it could deliver huge benefits to the beef sector.

Despite the financial negatives that might come in a post-brexit world, he believed the Scottish red meat industry had all the right ingredients for a strong future.

“Those working in it have a huge amount of passion, pride and professionalism and work incredibly hard to produce the beef, lamb and pork which has earned a place at the top of the global menu,” he said.