Scottish Organic Beef, Lamb and Grain Output for 2006-2007

The production of organic beef, lamb and grain in Scotland has increased compared with a year ago, reflecting the buoyant market situation in the Scottish organic sector.

Between July 2006 and June 2007, organic producers in Scotland will produce approximately 5,900 head of finished organic cattle (an increase of 21% compared to

the previous year), 90,400 prime organic lambs (an increase of 8%) and approximately 21,000 tonnes of organic grains and pulses (an increase of 22%).

These are just some of the findings of the annual survey of organic producers in Scotland undertaken as part of the SAC Organic Market Link (OML) project. 87% of organic producers in Scotland were accounted for in the 2006-07 survey, the third year it has taken place, and which estimates the annual output of prime stock, store stock

and grain and pulses.

The numbers of store stock have also increased slightly with approximately 3,500 store

cattle and/or weaned calves (up from 3,000) and 25,400 store lambs (up from 21,100).

SAC Organic Market Link Coordinator, Caroline Bayliss, points out the benefits of this

information to organic producers, processors and marketing outlets,

"Information gathered through the OML survey has allowed direct farmer to farmer trading for grains, pulses and store stock to develop. It has demonstrated continuity of supply and has given confidence now to three of Scotland's volume processors to get their beef lines up and running in Scotland .

"Supply information is fundamental for processors and multiple retailers when deciding

to turn on new market outlets for Scottish organic producers. In addition, the results have also provided pointers to organic producers in terms of making production decisions. It is very pleasing to see this increase in production, but we have a long way to go to satisfy market requirements, particularly for beef and grain where we could

probably double the current level of production and still not satisfy market demand. It is

also pleasing to see a slight shift in the seasonal production pattern for lamb.

"Although September, October and November are still the months with highest production, producers have clearly made an effort to finish more lamb in late winter/spring to fill this period of supply shortage, something that we have been

encouraging them to do.

"We are very grateful for the continued cooperation of producers in undertaking the

survey."

Further Information

Beef Cattle

As in the previous year, there is a relatively consistent monthly supply of finished beef cattle being produced in Scotland, varying from a low of 280 head in June 2007 to a high of 600 head in December 2006. The main areas of organic beef production in

Scotland are again similar to last year; Aberdeenshire, Dumfries & Galloway and Perthshire. Almost 70% of producers stated that they intend either to produce similar

numbers of finished organic beef cattle in future or to increase production marginally and a further 12% plan to increase numbers significantly. Despite the increase in supply in this year compared with last year, the current level of supply is insufficient to meet market demand. The multiple retailers are currently reporting significant growth in organic beef sales. A recent MLC report stated that to year ending 5 November 2006 sales of organic red meat increased by 12% while conventional red meat saw a growth of just 1% during the same period. Organic beef sales in particular showed strong

growth, rising by over 20%. The proportion of households purchasing organic meat over

that 52 week period was almost 12%, compared to 10% in the previous year; this equates to 2.8 million households purchasing organic meat at least once a year and an extra 245,000 homes buying the product who had not made a single purchase during the previous year. Scottish organic beef producers need to increase their production significantly to satisfy this growth in demand.

Sheep

Despite the slight growth in annual supply and the pronounced seasonal pattern of production, the growth in the organic market has been such that all prime organic lamb produced in Scotland which meets the required specification will find a home within Scotland's organic food chain. In fact the survey results have indicated a slight shift in

the production pattern. Only 48% of prime lamb was marketed in the peak months of the season between September and December 2006 (compared with 58% in the 2005-

06 survey). It is predicted that 32% of the annual supply of prime organic lamb will be marketed in the four months January – April 2007 (compared with only 20% in the 2005-06 survey). Producers are, therefore, making a determined effort to avoid the glut period in the back end of the year and instead to target the period of shortage in late

winter-early spring.

The Borders and Perthshire is where organic prime lamb production is most concentrated in Scotland although Aberdeenshire, Lothians and Dumfries & Galloway also produce a large amount of organic prime lamb. Most producers intend to produce similar numbers of prime organic lamb during the next couple of years. A few producers

also intend to increase their production marginally, therefore prime organic lamb production in Scotland should remain fairly stable over the next couple of years.

However, it remains to be seen whether lamb finishers have taken into account the fact that a number of store lamb producers have left the organic sector.

Grains and Pulses

Grain production in 2006 has increased by 42% since the 2004 harvest, as a result of

significantly increased prices (see table below). Changes in the organic feeding standards which were introduced in August 2005 have also been a factor in this and have led to a significant increase in the proportion of grain being retained for home

feeding. As a result the market for organic grain in the UK is vastly under-supplied. The

demand for feed grain has also been fuelled by a substantial increase in production of

organic eggs and organic broilers.

Harvest, Total production (t), % intended for home use,

2004, 14900,32,

2005, 17100,56,

2006, 21100,55,

Barley was the main cereal at the 2006 harvest, with approximately 6700 tonnes being produced, followed by oats (5400 tonnes) and wheat (5200 tonnes). The quantity of oats produced in 2006 increased by almost 1700 tonnes compared with 2005, probably

as a result of greater confidence in the price (and the ease of growing this crop organically). Barley production has also increased substantially since the 2005 harvest, and wheat production by a smaller amount. The production of pulses also increased, to approximately 2700 tonnes.

Organic feed grain remains in significantly short supply, with offers for feed wheat now

(January 2007) reportedly exceeding £200 per tonne. Feed compounders may be forced to look overseas for supplies. In any case supplies will continue to be tight into the next harvest and prices are likely to remain strong. The lack of supply is holding back expansion in the organic poultry and pig sectors. With a number of lowground

farms currently in conversion, these farmers should give serious consideration to growing in-conversion grain, providing this can be done without compromising the fertility-building requirements of their rotation.