The Scottish red meat sector is weathering the storm of Brexit uncertainty and investing for the future.
Quality Meat Scotland (QMS) head of economics services, Stuart Ashworth, said despite the lack of clarity on the impact of Brexit, the sector was performing well and many businesses were investing to future-proof their operations.
Speaking as QMS launched the Scottish Red Meat Industry Profile, he said 2017 had been a “middle of the road year”.
Mr Ashworth said calf registrations slipped for the second year, and processors found it difficult to achieve higher wholesale prices against a backdrop of strong farmgate prices.
Steers traded 7% above 2016 levels at 375p a kilo deadweight, and cow prices increased by 14% on the back of a strong manufacturing grade beef market.
Total beef production fell by 2.9% to 167,250 tonnes, and lamb production decreased by 2.6% to 23,400 tonnes. The Brechin abattoir fire resulted in a 12% decline in Scottish pig abattoir output to 21,100 tonnes.
England and Wales remained the largest market for Scottish processors in 2017, while exports outside the UK represented 9% of total turnover and increased to more than £80m last year.
The premium paid at Scottish auctions for quality assured prime cattle averaged 22%, and it increased to almost 7% for sheep.
Looking ahead, Mr Ashworth predicted a similar year for 2018 although pig margins would be pressured.