M&S looks to increase meat sales as beef price plummets

This puts the average ex-farm price in Scotland at £4 per dwkg, although regular, loyal suppliers to individual meat plants are known to receive an extra 20p per kg.

Even more damning is the fact that the majority of abattoirs south of the Border ‘stood on,’ the previous week’s prices, at 410-415p.

The Scottish crash comes at a time when all input costs have soared with little if any chance of them falling in the near future. Fertiliser prices have more than doubled on the year, red diesel is up 68% and feed barley has risen a massive 71%. As a result, many finishers are now questioning the sustainability of their businesses.

However, Robbie Galloway, managing director of Scotbeef, Bridge of Allan, defended the fall. “We are living in uncharted territory with post Brexit and Covid upsetting trade. The markets need the opportunity to realign themselves.

“There has been a softening of retail sales as consumers are faced with rising inflation across all household expenditure. The protein market is very competitive with poultry and pork perceived to be better value by the consumer.

“Christmas sales of beef were not as buoyant as in previous years or had been expected as consumers chose to buy cheaper protein.”

Mr Galloway added that while he does not expect the trade to drop below £4 per kg, values of 425p seen in November which were driven by a contraction in supply rather than demand, were always going to be unsustainable due to the unpredictable economic environment.

He also added that all key stakeholders from producers to processors to retailers have a responsibility to make sure that the values through the supply chain are sustainable, allowing the market to grow in line with other food sectors.

"We are currently in one of the toughest trading periods ever seen for all British businesses and the cost inflation that we are all experiencing from labour through to utilities, transport and the much talked about CO2 is going to have a huge impact through the industry over the next 12-18 months."

When challenged on the company’s decision to increase the amount of cows being processed, some of which come from south of the Border, Mr Galloway replied that due to the easing of Covid restrictions and the opening up of the food service sector, they had the opportunity of doing more burgers for one of the major burger chains.

Steven McLean head of agriculture and fisheries at M&S

On a more positive note, Steve McLean, head of agriculture and fisheries at Marks & Spencer, said that there is now a huge opportunity for British meat and dairy producers concentrating on high animal welfare and high quality produce.

Speaking at the virtual British Cattle Breeders Conference on Tuesday, he again called on a shorter, more integrated supply chain, with more collaboration throughout.

“We want to work in partnership with British agriculture and support our suppliers. Meat is a really, really important food which contains essential nutrients and micro elements essential for a healthy diet and with better marketing and information to consumers, we aim to sell more British beef and dairy,” he said.

Mr McLean added that by highlighting the benefits of meat and dairy and how it is produced by farmers who are joining environmental schemes to improve the biodiversity of the countryside, there are collective benefits for all.

“There are huge opportunities out there and it is the young people who have the brightest future when eating becomes increasingly more important for the next generation. The industry needs to capitalise on the benefits of both types of protein from the beef and the dairy sector.

“People are becoming more and more interested in food, but we need a collaborative approach to educate consumers how their food is produced,” said Mr McLean adding that all fresh beef and lamb sold in M and S stores is British, with 60% of its beef from Scotland and 30% of that made up of Aberdeen-Angus.

More than 50% of the lamb sold is Scottish with the remainder from the other home nations.