Scotland’s red meat sector delivered record-breaking economic returns in 2024 – but warning lights are flashing as shrinking livestock numbers threaten the industry’s future.
The latest Red Meat Industry Profile reveals that combined farming and processing output for cattle, sheep and pigs reached an estimated £2.7 billion in 2024 – up 2% on the previous year.
When the wider economic ripple effects are included, the sector’s total impact climbed to £3.5 billion in output and £1.05 billion in Gross Value Added (GVA).
Despite these headline figures, Quality Meat Scotland's (QMS) report warns that declining livestock numbers continue to pose a significant threat to the long-term sustainability of the sector and its contribution to Scotland’s rural economy.
The report reveals that combined farming and processing output for cattle, sheep, and pigs in Scotland rose by 2% in 2024, reaching over £2.7 billion.
When wider economic impacts are factored in, the sector’s total contribution is estimated at £3.5 billion in output and £1.05 billion in gross value added (GVA).
Beef cow numbers continued their long-term decline, falling by 3.6% year-on-year and by nearly 15% over the past decade. Calf registrations in 2024 were down by 0.8%, although there are signs the rate of decline may be slowing.
The national ewe flock contracted for the third consecutive year, down 2.3% in June 2024. Despite this, sheepmeat availability on the UK market increased by 8.8% from 2023, driven by a rise in imports and strong domestic demand.
In the pig sector, total UK pigmeat supply rose by 4% from the previous year, with abattoir production volumes in Scotland also increasing by 4%.
Turnover from primary red meat processing grew for the fifth consecutive year, up by 5% to £1.14 billion in 2024. However, employment in processing declined due to restructuring and productivity gains, and for the first time, workers from outside the EU and EEA outnumbered those from within.
Despite strong demand for Scottish red meat, profitability challenges—driven by high input costs, labour shortages and elevated interest rates—have continued to erode herd and flock sizes.
QMS Market Intelligence Manager and report author, Iain Macdonald, said: “Despite record finished cattle prices and strong demand for both beef and lamb, the lack of profitability due to persistently high input and labour costs has driven further herd and flock reductions.
"While the sector’s ability to generate record economic output in 2024 is encouraging, the continued contraction of Scotland’s livestock herds highlights the urgent need for action.”
In the sheep sector, strong market prices were offset by high spring lamb mortality due to adverse weather, while in the pig sector, confidence improved following recovery from the financial crisis of 2021/22.
The report also signals shifting dynamics in the labour force, with workers from outside the EU/EEA now outnumbering those from within, as recruitment pressures continue.
QMS and the Scottish Red Meat Industry Resilience Group’s Meating Our Potential campaign is urging action across the supply chain to stabilise livestock numbers and capture emerging market opportunities—particularly in light of growing domestic supply gaps.
Mr Macdonald concluded: “Without intervention, the UK’s reliance on beef and lamb imports will only grow, potentially from countries with lower standards, at a time when geopolitical instability and climate change make food security more important than ever.
"It’s vital that Scotland’s specialist sheep and pig sectors retain the confidence to keep investing in high-quality production that underpins rural livelihoods and supports healthy, balanced diets.”
