BEEF PRODUCERS have been facing a slump in prices recently but red meat body Quality Meat Scotland is keen for the industry to keep a positive outlook.

At a media briefing at Ingliston this week, QMS chairman Jim McLaren suggested that, as the implementation of CAP reform and the effects of the weather were firmly out of farmers' control, they could focus instead on the things that they can change.

They should be looking at they way things work on-farm, he said, including measures to improve cow fertility, reduce disease, optimise nutrition through feed analysis and maximise grass and soil management.

"There will always be factors which influence the profitability of livestock farming which are outwith the control of producers such as CAP reform and currency fluctuations," said Mr McLaren. "The challenge for the industry looking forward is to avoid being distracted or undermined by those areas, and instead focus our energy on the aspects of our businesses where improvements can be made."

He added that the practical implementation of the Beef 2020 proposals, confirmed by rural affairs secretary Richard Lochhead in recent weeks, now offered a major opportunity for Scotland's beef industry.

QMS chief executive 'Uel Morton expanded on this positive approach, stating that he believed the body can deliver for levy payers. And on the subject of those levies, he added that QMS would continue to push for the return of levy payments lost when Scottish livestock are slaughtered outwith Scotland.

Despite a number of factors meaning beef farmers have had a difficult start in 2015, QMS head of economics services Stuart Ashworth said the coming months appeared more encouraging for beef producers as the supply and demand pendulum starts to swing back their way.

"We know the availability of prime cattle in Scotland, UK and Ireland will diminish so, in the next quarter, we expect to see the volume of cattle arriving at abattoirs slow down. It is likely we will then see some firmness in the market for the beef producer," said Mr Ashworth.

Looking back at the situation over recent months, he said a complex range of factors had been influencing the market, based around the basic building blocks of supply and demand: "What has happened is the volume of cattle has been starting to fall, resulting in Scottish and UK abattoirs handling fewer prime cattle, although this has been slightly offset by an increase in cow slaughterings.

"However, the price has also continued to fall, reflecting the fact that cattle are being slaughtered at heavier weights. As a result, although the number of cattle being slaughtered has reduced, the volume of beef produced over the first quarter had increased by one percent," he explained.

One very significant factor has been the impact of the strength of Sterling, he added. This has meant that it has been difficult for processors to export, while at the same time imports have become more attractive. That would not have been a problem if consumption had been strong, but it has not been enough to absorb the extra supply.

"Some cuts have been selling better than others but the product which is not selling well has been building up in processors' chills and has had to find a market in the manufacturing trade which has been proving sluggish," added Mr Ashworth.

"This explains why we have seen a slide in farm gate prices and why some of our producers have been facing an extended period to get cattle to market."

However, he insisted the outlook was looking more promising for beef farmers: "We know from BCMS data that the volume of cattle set to come forward as prime stock over the next six to nine months will diminish further and the same scenario is expected in Ireland. This will mean the abattoirs will be able to manage the sale of less popular cuts out of their cold stores and the whole supply and demand balance will come closer together."