If the UK’s departure from the EU is handled properly it could be a stepping stone to increased food and drink exports from Scotland says the Scottish Association of Meat Wholesalers (SAMW).

The Association also believes, however, that if Brexit is handled badly by Government, Scotland’s farmland will become an unproductive and unprofitable drain on the country’s resources rather than the massive contributor to prosperity and employment of which it is capable.

These were the headline points made by SAMW president. Allan Jess, during a meeting with the Scottish Government's Cabinet Secretary for the Rural Economy and Connectivity, Fergus Ewing.

“This was our first opportunity to meet the Cabinet Secretary after his appointment and we appreciate the time and consideration he gave us in our position of representing almost 100% of the Scottish red meat processing industry,” said Mr Jess, who headed a four-person SAMW team at the meeting, which took place on Thursday, July 28.

“We sought to present a clear and direct message to the Cabinet Secretary, outlining our optimism for the future of Scotland’s red meat industry while also pinpointing key issues which we believe could cause serious damage to our sector.

“Our challenge to the Scottish Government, for example, is to pursue a post-EU referendum plan which a) maximises the advantages and opportunities which will arise throughout the duration of the UK’s Brexit transition, and b) establishes a production and business platform for post-EU Britain which will enable the industry to grow its domestic and export markets.

“If these points are addressed we see no reason why the future can’t be very bright for the Scottish red meat industry.

“One fact which will not change during the transition period, however, or in the years following the conclusion of Brexit, is that Scotland’s red meat industry can only survive and prosper if sufficient raw material supplies continue to be made available. A priority for the red meat supply chain, therefore, is to obtain the earliest possible indication of how the UK will replace the EU’s Common Agricultural Policy (CAP) and the subsidies this provides to Scottish farming.

“In 2015, Scotland’s red meat abattoirs received 459,300 cattle, 1,341,520 sheep and 303,040 pigs and SAMW’s members companies are united in stating that the level of supplies in each category was the absolute minimum to enable the current industry to exist in its present form. Any reduction in supply levels, due to policy or producer confusion, over the duration of the Brexit transition, or the lack of a sound domestic and export strategy for post-EU Britain would signal the end of the Scottish red meat industry in its present form.

“As such, there must be no confusion, lack of direction or the creation of production disincentives during the transition period, or beyond. We urged the Cabinet Secretary, in fact, to ensure that producers are given the confidence and reassurance to continue providing Scotland’s abattoirs with at least the level of supplies seen in 2015. Ideally, of course, our member companies would like to see production stimulated during this period to create the strongest possible platform from which to attack the UK’s post-EU future.”

The SAMW team also told the Cabinet Secretary that the Association’s members are not interested in merely achieving ‘business as usual’.

“SAMW believes we should draw on successful examples of past policy as well as imaginative and positive new initiatives,” said Mr Jess.

“In the longer term we need not be hampered by State Aid obstacles. Furthermore, the opportunity should be taken to review existing support mechanisms. For example, can the Beef 2020 initiative be re-shaped and uncommitted funding used to ensure maximum effect for producers and processors alike?

“In advocating this approach, we are not seeking an assurance from Government that the support structures of the CAP will be carried over into a ‘business as usual’ future. We believe, in fact, that the offer of ‘business as usual’ would completely miss the point.

“For years the Scottish red meat industry has been saddled with a one size fits all, regulatory straight jacket, and Brexit provides the means to break free from this and embrace the undoubted, and previously unattainable, opportunities to grow in a different direction.

“SAMW wants to move beyond mere ‘business as usual’ believing that Scotland’s red meat industry has enormous growth potential as a provider of essential jobs and income throughout rural Scotland. That will require new thinking by Government with a willingness to start with a clean sheet in drawing up the sort of incentives which will make Scotland the food and drink success story of Europe.

“This is not the time to be cautious or to wait and see how things work out. The red meat industry in Scotland is too delicately balanced for any indecision on Government’s part, even short-term indecision. We cannot afford to pause as an industry while the UK sorts itself out.

“Brexit should not fetter our thinking or limit our potential. Nothing should be ruled out. Primary producers need incentives, be they in the shape of premium payments, deficiency payments, quality improvements, measures to retain stock in Scotland, and so on. Meat processors also need incentives, over and above a secure and increasing supply of livestock. These might include slaughter premia, export credit guarantees, capital grants, preferential loans, etc.

“The time available to reconfigure our industry’s trading future is short, however, so early consideration is essential. We need action now.”