THE announcement yesterday that the Irish-controlled ABP has decided to "mothball" its abattoir at Bathgate, West Lothian, with the loss of 80 jobs, was not unexpected.
This plant, which processed about 500,000 lambs each year, or around one third of all the lambs slaughtered in Scotland, will cease operations at the end of May.
Margins for sheep farmers have been slender in recent months, but the statement from ABPmade it clear the processing sector has also been suffering.
A spokesman said: "There have always been difficulties in operating the Bathgate plant because it was solely dedicated to lamb processing within a Scottish market which produces on a seasonal basis."
While Scotland's national flock produces roughly three million lambs a year, more than 50% are processed in England and Wales and sold into what is essentially a commodity market. Of immediate concern is the fact that Bathgate handled one third of the 1.35 million lambs processed in Scotland.
Jim Walker, chairman of Quality Meat Scotland, has been aware for some time of the possibility of closure at Bathgate. However, he remains positive. "I wrote to all processors last month emphasising the opportunities in Scotland and offered to help any company interested in expanding their activity on lamb."
Interest has subsequently been expressed and QMS, with the Scottish Executive and Scottish Enterprise, intends to provide assistance.
Walker is convinced that there is enough processing capacity still in Scotland to cope with the exit of APB.
That view is not shared by Isla Roebuck, president of the Scottish Association of Meat Wholesalers. He said:
"Perhaps this closure is an indication of the pressure on all food processing businesses and the red tape which is stifling initiative.
"We accept there must be rules and regulations, but they must be proportionate. My worry for farmers is there may well be a shortage of processing capacity in Scotland in the short term, and that will put pressure on prices."
