Given that Turriff sits right in the heart of one of the most important beef production areas in the country, it is hardly surprising that the future of the sector is a cause of real concern.
At a meeting between the North-East regional committee of NFU Scotland and Rural Affairs Secretary Richard Lochhead at Turriff Show, national president Nigel Miller voiced his real concerns about the growing influence of the multiple retailers.
Prices are indeed down between £200 and £300 per head for finished cattle compared to last November and had dropped from 420p per kg to 350p over the period, but there were nods around the table when it was suggested by one member that at its peak the price might just have been too high for the market to sustain.
Nonetheless, low margins now were doing nothing to stop the steady erosion of suckler cow numbers.
“We are already in the position where we are not self sufficient in beef. Last year we were importing 20% of our requirements. This year it has dropped to 10%,” Mr Miller said.
“The real danger is that the market becomes totally dominated by the multiple retailers.
“The processors have commitments to the big retailers and they are absolutely petrified to take on any extra export activity in case they cannot source enough cattle and cannot supply their large domestic customers.”
This would indeed be an unenviable position to be in, considering the supermarkets’ propensity for imposing massive fines for non-supply.
It did, however, mean that it made it very difficult to open up new markets in promising premium areas such as Scandinavia.
Douglas Barr of Delfur Farms, Rothes, joint NFUS North-East vice-chairman, voiced his fear that farmers might not be the ones to benefit from the £45 million of “new money” to be made available to boost the beef industry.
Rural Affairs Secretary Richard Lochhead had secured the money from Scottish Government sources, and although it will be administered as part of the next Scottish Rural Development Programme it is not strictly speaking part of the CAP package.
Mr Barr’s worry was that the supermarket buyers might simply build the extra income into their calculations and reduce the farm-gate price accordingly.
He also asked if the findings of the Government-sponsored Beef 2020 Group would go out to industry consultation.
The cross-industry group is chaired by Quality Meat Scotland chairman Jim McLaren.
Mr Lochhead was somewhat evasive, saying only that there would be “consultation as required”, but adding that he hoped to have any new schemes “up and running” by next year.
“It is worth remembering that this £45m represents an unprecedented investment by Scottish Government,” Mr Lochhead added.
Alford farmer and NFUS livestock committee chairman Charlie Adam said: “The attraction from the word go with this Beef 2020 initiative is that it has the ability to deliver something meaningful, although it does have to be justifiable to the public.
“For example, it would give an opportunity for the industry to work together to create a database capable of helping producers boost performance. It is data that will drive improvement and will be of more value than just supplying an extra 40 euros per calf.”
Early indications are that the vast majority of the money will be directed towards boosting suckled calf production.
At the Highland Show, Mr McLaren said he hoped the findings of the Beef 2020 Group would be unveiled in late summer.