Scottish farmers face profitability problems without EU subsidies, says new report
Sheep and cattle producers in Scotland are facing profitability challenges and face difficulties without EU subsidies, a report has said.
The 'Cattle and Sheep Enterprise Profitability in Scotland' from Quality Meat Scotland said store cattle and prime lamb prices failed to match last year's levels.
"Although the results show some improvement in margins among suckler herds, they continue to illustrate the scale of the challenge of achieving a positive margin without Common Agricultural Policy."
'Competitive disadvantage'
British sheep farmers could find themselves at a huge competitive disadvantage if the EU implements increased CAP support for livestock farmers when the UK is withdrawing from the union.
Speaking as a report was released by the European Commission which sets out a 13-point plan to help sheep farmers throughout the union, Joanne Briggs, National Sheep Association officer for England said payments coupled to livestock numbers is 'not something the UK government had an appetite for.'
"Even before the EU referendum result, many UK livestock farmers had reservations. But if this is taken up across Europe at a time when out government is looking to replace existing agricultural support with a post-Brexit successor, we could find ourselves at a huge competitive disadvantage in the future," she said.
Phil Hogan, European Commissioner for Agriculture and Rural Development, instigated the formation of the sheep meat forum in response to the fragility of the sheep sector across Europe.
He tasked the group, which involved representatives of EU member states, to consider the factors of falling sheep numbers and declining sheep meat consumption and how this jeopardises the many public goods delivered by sheep farming businesses.
Top third
The variation in the financial and technical performance between Scotland’s top third producers and the bottom third was also sharply brought into focus in the publication.
"Scotland’s top third producers are characterised by three key attributes - strong physical performance, control over costs and an ability to maximise returns from the marketplace," said Stuart Ashworth, QMS Head of Economics Services.
