The Millers of Speyside abattoir in Grantown will be solely a beef slaughtering facility from the start of next year.
Managing director Sandy Milne told us labour shortages and “ever increasing” running costs made it necessary to operate a leaner business.
It will no longer be offering private kill services for pork and lamb.
But it has arranged for pig private slaughter, where required, at Brechin abattoir.
‘Streamlining’
Mr Milne said: “We are simply streamlining the business.
“We are outsourcing the supply of lamb and pork for our retail butchery customers.
“And from the start of the year we will be solely a beef slaughtering abattoir.”
He added:Â “Shortage of experienced labour and ever increasing running costs make it necessary for us to take this route .
“The only difference is we will not be offering our private kill services for pork  and lamb, but have secured the pig private slaughter, where required, at Brechin abattoir.
“We will continue to provide private kill facilities for cattle.”
Mr Milne said it had become harder to recruit workers for the abattoir, particularly from overseas, since Covid and Brexit.
He added: “It’s the lack of staff, of skilled labour. This kind of job is very difficult and local people don’t want to do it.
“There doesn’t seem to be any light on the horizon.”
Millers, incorporated in August 1994, typically employs 35-40 people.
The firm supplies meat to customers around the world.
Accounts for the parent company, Scotia Sales and Marketing, show pre-tax profits slid to £6,493 in the year to January 31 2024. This was down from £112,570 the year before.
But turnover grew to just over £19 million in the latest period, from £17.2m previously.
In his review of the 2023-24 financial period, Mr Milne said it was “yet again another extremely difficult trading year”.
Firm’s latest annual accounts highlight ‘ever spiralling’ costs
He highlighted record high livestock prices and “ever spiralling” running costs.
Millers’ MD told us these economic factors, along with ongoing cost-of-living issues facing many consumers, have continued to present challenges for the business in 2024.
The price of red meat is unaffordable for a lot of UK shoppers, he said.
Lamb is “not a huge seller” in the Scottish market these days, he added.
It is now a “luxury item” and beef is “going the same way”, he warned.
Meanwhile, operating costs at abattoirs are continuing to rise sharply, he said.
These circumstances have prompted changes at Millers, he said, adding: “We have had to look at everything.
“We are streamlining our business in order to make sure it remains viable going forward.”
It is purely a commercial decision by Millers and there is no impact on jobs, he said.
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