Responding to a letter sent last month by Scotland's first minister Alex Salmond, Prime Minister David Cameron has refused to return levy money paid by Scottish farmers whose animals are sent for slaughter in other parts of the UK.

Rural affairs Secretary Richard Lochhead updated the Scottish Parliament on the PM's response on Wednesday (11th September).

In August, Alex Salmond wrote to Mr Cameron, arguing that the loss of levy funds kept south of the border when animals born in Scotland are sent for slaughter amounts to £1.4 million each year. Salmond claimed Scottish levy body Quality Meat Scotland has felt the effects of more animals going to English and Welsh abattoirs, the result of a string of closures of Scottish facilities in recent years.

Making the case for levy repatriation, Mr Salmond pointed to the Ratcliffe review of levy bodies, which suggested levy funds be returned to animals' country of birth.  

However, Defra argued in August that much of the money raised throughout the UK goes to support Scottish meat producers, especially through promotion of UK produce to potential export markets. Mr Cameron rejected the Scottish First Minister's appeals in his response this month.

On Wednesday, Mr Lochhead expressed concern that the Prime Minister and Defra ministers had claimed the contested levy money is being used for the benefit of Scottish producers. He pointed to the AHDB website, which states that its responsibilities include promoting red meat from England and concluded that the continued refusal of UK ministers to repatriate levy funds is perpetuating the "ridiculous situation" wherein "Scottish farmers' contributions go to help promote the produce of their counterparts elsewhere in the UK."

Mr Lochhead assured on Wednesday that Scottish ministers will continue to push for the funds they believe are owed.

Farm unions and Quality Meat Scotland have said that, in the interim whilst negotiations are ongoing, there is scope for levy bodies from all over the UK to work together to promote produce from all nations. NFU Scotland called on the AHDB to provide clarification on how this could work.