News From : DagangHalal.com (28 Mar 2009)
Sheep producers are enjoying an unprecedented boom in prices, with the best old-season lambs making as much as £100 per head: even cast ewes of decent quality are worth well over £80 – some 30 per head above the levels of 12 months ago. The trade is to a large extent based on the relatively low value of sterling against the euro and declining production throughout the EU and even in New Zealand.
France remains the UK’s most important export customer and figures recently released confirm that fact. Last year France imported 128,200 tonnes of sheep meat from a range of sources – little different from the 2007 figure, but considerably below the 138,300 tonnes of 2006. The fact is that lamb consumption throughout the EU is dropping, with less of the younger generation savouring a chop or a decent roast.
UK trade with France in lamb last year totalled 58,700 tonnes, which was 10,000 tonnes higher than in 2007. However, it should be remembered that the autumn of 2007 saw UK exports of all meats banned as a result of anoutbreak of foot-and-mouth disease in Surrey. The reality is that last year’s UK exports of sheep meat were more or less equal to the 2006 figure. The current year might just see an increase in exports as domestic production in France continues to decline and alternative supplies from Ireland appear uncompetitive on currency grounds.
It is always dangerous to be over-reliant on one market and the announcement that the United Arab Emirates, and that includes Dubai and Abu Dhabi, is once more willing to permit imports of red meat from the UK is clearly good news. The re-opening of this relatively small, but potentially expanding, market has been achieved as a result of a considerable degree of hard work and lobbying by Quality Meat Scotland and associated agencies throughout the UK, not the least of which is Scottish Development International (SDI).
Laurent Vernet, the head of marketing for QMS, said: “Dubai in particular has become one of the major transportation hubs of the world, welcoming more than 18 million travellers in 2008, and has a bustling economy attracting many foreign workers. The population has more than doubled over the past decade to 1.6 million people.”
Lamb and sheep meat in general is the favoured diet of much of the Arab world and, with a whole host of new high-class hotels having opened in the Emirates in recent years, demand is reported to be strong. Imports of UK lamb also have the potential to open the door for Scotch beef, especially with the Middle East remaining largely immune to the global recession.
However, all exports of lamb must be subject to Halal certification: this means that there is no pre-slaughter stunning in abattoirs and may not sit easy with UK animal welfare organisations. Initial discussions have taken place between likely exporters and potential importers, but the aim is to develop wider markets in the Middle East.
David Smith, operations director at SDI, said: “This is a terrific development for the Scottish red meat industry. The UAE provides real opportunities for Scottish food exporters. We will continue to work with QMS to get Scotch beef as well as lamb into this expanding and dynamic market.”
QMS has other non-EU target markets in its sights pending successful negotiations on the required export documentation. Hong Kong and Singapore appear likely targets. QMS continues to receive considerable support from the Scottish Government in its aim to see the Scottish food and drinks industry increase sales from the current level of £6 billion each year to at least £10bn by 2017, but will depend on farmers receiving favourable returns for their livestock and crops over that timescale.
As the Common Agricultural Policy is currently formulated, farmers can opt not to produce unless they can see a profit safe in the knowledge that they will still receive substantial support.