INVERURIE-based ANM group has said it is ready to consider ways of co-operating with others in the meat business to improve prospects for red meat production.
ANM, through its Scotch
Premier Meat subsidiary, is a major player and prior to the BSE scare was a top exporter to Europe.
Writing in the company's twice-yearly Journal chief executive Brian Pack said: ''Almost on a daily basis one hears our industry leaders and farmers crying for greater co-operation to increase prices.
''However, none have articulated how this change in market forces will be achieved.
''As a farmer-owned business with resources - but not sufficient to change the shape of the market to what we would like - we would be pleased to consider any
proposal that would improve the prospects for red meat
production.''
Pack reported that, having shed two loss-making businesses, including the Scotch Premier abattoir at Edinburgh, the ANM group is operating profitably ''but at an unacceptably low level.''
John Gregor, general manager of Aberdeen & Northern Marts, the group's core auctioneering company, welcomed the prospects for the lifting of the beef export ban but warned that the strict
conditions which will govern the export trade should not be allowed to impinge upon the auction
system which has a crucial role to play in achieving true competitive pricing and ''ensuring livestock farmers receive a just reward for their efforts''.
Raymond Wight, Scotch
Premier's managing director, emphasised that the political decision to lift the export ban is only the first part of the equation and much work will be required to ensure that all the conditions are met to allow exports to recommence by the target date in May.
''Before the imposition of the ban, exports accounted for around 25% of Scotch Premier's turnover, so the resumption of this is
vitally important to the future of our business. It is also important for beef producers because the export trade was a significant
factor in ensuring adequate returns for farmers.''
He pointed out, however, that it took many years and a weak pound to build the Scotch beef export trade up to the #120m a year level which it was worth before the ban.
''It will take a long time to recapture all of that trade,'' he admitted. ''However, I am
confident we have the quality beef which the discerning European consumer is looking for and is prepared to pay for.''
A visit last year to the international SIAL food fair in Paris had shown an encouraging response from customers who were all keen to resume purchases of Scotch Premier beef.
Wright reported that throughput at the Inverurie plant was
running at about 1000 cattle per week in the run-up to Christmas with strong demand for
hindquarter cuts.
By contrast, forequarter and flank cuts were selling for 20p per kilo less than last year because of the release of intervention stocks.
In addition hides were #10 cheaper and the disposal of specified risk material - bones and offal - was costing the company #600,000 a year.
The resumption of an export trade for offal - the so-called fifth quarter - would be an equally important factor in restoring
profitability to the industry.
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