Quality Meat Scotland's new chief executive, Alan Clarke, took over the reins from Uel Morton, last summer, but to date, the industry has not heard much about his plans for the future.
His career path is impressive and includes chief executive of Scottish Bakers for seven years which in turn saw the establishment of the first Scottish Bakers Export Group and increased membership by 22%. Mr Clarke also boasts five years' experience as director of Lifelong Learning UK and 10 years as chief executive of a sector training council in Northern Ireland.
The Scottish Farmer took him to task over his views of the various sectors of the red meat sector and how he aims to take the industry forward...

You have been CEO of QMS for six months now - What are your views of the Scottish livestock industry at present ? 


The last six months have flown by and I have spent time trying to get to know our levy payers – farmers, processors – and each part of the red meat industry that delivers their return on investment.  Like other parts of the food industry the red meat sector is driven by customer demands in local, national, UK and international markets and I have been impressed with people throughout the supply chain, who obviously have a care and a love of the industry.
Customers are very discerning, when paying a premium, they want to know much more about the providence of their food and in terms of red meat, the welfare of the animals.  This gives many challenges to the supply chain and put simply, it’s the survival of the fittest!  There are many similarities with other parts of the food sector including Scottish bakery, where I spent the last 7 years.  The farmers, processors and companies in the red meat supply chain that listen and react to the needs of their customers will thrive, those that do what they have always done will find it more difficult to do so.  

What are the strengths and weaknesses within the various sectors ?

Like all industries there will be many strengths and weaknesses and to be honest this is still part of my learning curve. The fire at Brechin abattoir made me realise the value that is put on the “scotch” brands and I was impressed how the industry came together in a crisis. The commitment from farmers through to retailers to support the brand made me realise that the whole red meat supply chain needs to understand each other’s needs. As well as being part of it, each part of the chain are also consumers of the end products and it’s important that every part of the sector talks it up in public – no one else will do it for us – and comes together to address issues behind the scenes. I have met many people who are professional in their approach and passionate about the industry and it would be great for their pride to shine throughout the whole supply chain. 
I realise there are many challenges, the importance of CAP payments to the sector cannot be denied and concerns over the future direction of that support are real and important. For any industry to grow there must be sustainable margins throughout the chain to build trust and encourage innovation. However, we have a fantastic story to tell, the pig sector is characterised by its willingness to cooperate over animal health and welfare and in the sale of its produce, it is very business focused with high levels of technical skills.
The Scottish red meat sector also benefits from the foresight to have gained recognition for the Scotch Beef and Lamb brand as PGI’s and creating the Specially Selected Pork brand. The whole of chain assurance programme offers farm to plate reassurance for consumers. 

Brexit is fast approaching, what challenges do the various sectors face in the run up to it and will there be casualties along the way ?


We have identified three key challenges of finance, people and regulation which covers the replacement of the Common Agricultural Policy (CAP), new international trading arrangements which will detail our trade agreements with the EU, where approximately 90% of our exports go currently, and the freedom of movement of labour giving the sector access to skilled labour. At long last some progress seems to be being made but the devil is always in the detail and I think there is still a long way to go. In any change process, there are always casualties but there are also winners and as I said earlier they are the ones who get close to their customers and this may mean diversifying their business, driving efficiencies and getting closer to understanding the needs of the whole supply chain.

Will Brexit enable family farms to continue ?

The devil is in the detail and there are still many unknowns.  But a key issue for farms is that they are family homes and may well have diversified household income and it is the level of household income that influences the decision or otherwise to exit farming.  So, a family business that has significant alternative income, paid work or diversified enterprise may well be better able to withstand the change than any other business.


How can increased livestock production assist meat processors to boost export sales when prices plummet as soon as there is any excess in the market ?

SAMW recently said the biggest issue they have is supply of product and to maximise export opportunities there is a requirement to have the volume of product to meet the demand.  
There is a dichotomy – without market access and new orders, we will not get expansion in stock numbers and we will lose export opportunities, but without the volume of product to meet these new orders, we will not get the new orders.  
Growing demand secures the long-term viability of abattoir producers by spreading fixed costs over greater volume. If a processor can achieve this objective, they then have the potential to pay more for their raw material, even if there is more raw material in the system.  

Should the beef industry continue with the EUROP grading system when Scotland’s meat industry will be based more on quality and yield rather than carcase conformation?

Eating quality causes much debate amongst the sector and however we move forward we will still need to take cognisance of the EUROP Grid as some of our target markets will still use it. I am not so sure if consumers understand this, what they want is consistent eating quality and to know that what they are eating has been produced to the highest standards of quality both pre-and post-slaughter.  However, the challenge is that eating quality is influenced both by the basic raw material and the way it is handled and cooked.  Capturing and measuring the influences on meat quality within the control of the farmer and devising a revised pricing policy and potential grid replacement will not be easy.  We are committed to continual improvement in partnership with the industry and will look at alternative options.


What is QMS doing to assist farmers post Brexit ?

We are reviewing our current strategy and we see very clearly that QMS is there to support businesses throughout the red meat supply chain. Our economic services team has spent time conducting an extensive analysis of current issues and although Brexit provides its own challenges, the red meat industry has faced many challenges before and survived and thrives and will continue to do so. We will continue to work with farmers to look at how they can maximise the profitability of their business and deliver the specification and outcomes that their customers are looking for. In addition to this we will focus on consumers to continue to build the “scotch” brands. A key challenge for us, is to convert the awareness of the brand into consumer triggers and actions that maintain and build demand. As part of our strategy, we are also undergoing an internal restructure to make us more responsive to the needs of our levy payers.

Not all farmers can adopt rotational grazing systems. What is QMS doing to help real hill farmers with limited if any in-bye ground ?

Our Better Grazing meetings focus on maximising output from grass, not just rotational grazing.  For hill farmers, their limited in-bye is an extremely valuable resource, requiring careful and strategic management to maximise its potential. Our workshops cover basic grassland management in terms of soils and nutrients as well as grazing management techniques to maximise utilisation.
Health is also a major contributor to the number of lambs of lambs reared on hill farms. Our latest round of workshops, planned for next month, will focus on control strategies for fluke and worms.  We also support initiatives such as SCOPS (Sustainable Control of Parasites in Sheep), the disease forecasting carried out by NADIS (National Animal Disease Information Service) and the work carried out by Livestock Health Scotland and the Moredun Institute.


Will Brexit result in the demise of hill sheep farming ?

Hill sheep farming contributes a significant amount to the Scottish economy and not just through lamb production, but also in the provision of public goods, including landscape management. We are crystal ball gazing without knowing the outcome of the Brexit deal. However, the importance of subsidies is key in this area, and the growing recognition of paying for public goods could be significant for the hill sector as will be the trade deals that are negotiated. However, like all parts of the red meat industry there must be a business approach taken to navigate through the many challenges that will occur.

What would QMS do with the lost levy money that has gone south of the Border, if it is ever able to retrieve it ? 

We are currently in negotiations with AHDB and we are confident that we can reach an agreement on this issue for the new financial year 2018/19 and as soon as agreed and signed off by the AHDB, HCC and QMS boards we will be able to release full details.

What are the main things farmers can do to improve profit margins on their own unit ?
The way to obtain profit is to maximise sales and minimise costs, so that of course is the starting point. To manage cost, it’s not about always looking for the lowest price, it’s easy to know the cost of everything and the value of nothing, it’s about looking at value, treating every pound as a prisoner unless it’s an investment delivering return. This is the reason we focus on industry development as well as product marketing as its important to manage both. On maximising profit from their livestock it’s about listening to the needs of their customers and delivering the quality and specification required.

We have heard so much from AHDB on their views of Brexit. What is QMS doing to address the issues ?  

We produced Brexit reports on trade and labour last year and co-authored AHDB’s report on Scotland, with Stuart Ashworth contributing to this. We are also working in partnership with AHDB currently and one of the key subject areas is how we can support farmers to prepare for Brexit and to deal with the issues that arise from it. Our aim is to produce support resources and these will be produced as the issues are known.  

Has sheep consumption in Scotland improved at all since QMS launched its various Eat Lamb campaigns ?

There is significant data to show the positive impact of the QMS campaigns during our period of advertising and promotion, with recent figures showing an uplift of 38% in sales of Scottish origin lamb in Scotland during our most recent campaign. As mentioned earlier a large proportion of lamb produced in Scotland is not sold here, but we are currently conducting a review of all our campaigns and we will be seeking to develop a new campaign for lamb which will include ways of further engaging with Scottish consumers.

What has happened to QMS’ annual conference in January/February ?

As part of our current strategy review we will be developing and delivering a QMS conference in the Autumn of 2018, we will be addressing key issues affecting the sector and our target audience will be the red meat industry and the key stakeholders that make up our footprint; this includes farmers, feed suppliers, auction markets, hauliers, primary processors, secondary processors, retailers, butchers, food service providers and chefs. 

The Beef Efficiency Scheme has been given a bit of flack recently, do you think it can be ‘fixed’ or is it a case of back to the drawing board ?

The beef efficiency scheme came from the Beef 2020 strategy and the issues that it was developed to address are still as important now as they were then. Like anything new it can take time to embed and there are always teething issues when introducing something new, however the farmers who have committed to it will hopefully see real benefits for their businesses.

Regarding Monitor Farms, is there a danger that farmers are being confused by the number of organisations that are running these…. And is there too much of an overlap which is adding to the confusion ?

My experience shows that people love to learn but sometimes hate to be taught!!  The monitor farms are a great way for the sector to learn from itself and from best practice. I think regardless of who the provider is there is real benefit for the participants, but we are not resting on our laurels and we are looking at ways of continually improving what we do.