CONSULTATION ON USE OF THE SHEEPMEAT NATIONAL ENVELOPE
ANALYSIS OF CONSULTATION RESPONSES
Background
On 18 June 2002 the Scottish Executive issued a consultation paper on use of the sheepmeat national envelope for Scotland in 2003 and beyond. The national envelope is provided for in Council Regulation 2529/2001, which was approved by the Agriculture Council in December 2001. The national envelope for Scotland totals around £2.75 million.
The consultation paper asked for views on 4 options for the national envelope outlined in the annex to the consultation paper. These options were as follows:
- Quality assured producers' scheme
- Assistance for Scottish National Scrapie Plan flock owners
- Development of producer marketing groups.
The consultation paper asked if the national envelope should be used to top up the Sheep Annual Premium (SAP). It also invited other ideas for use of the national envelope, provided that these were consistent with the requirements of the sheepmeat Regulation and the aim of using the envelope to encourage sustainable farming activity that seeks to respond to the market.
Finally, the consultation paper asked whether the size of the national envelope should be increased from 2003 by taking €1 (approximately £0.60) from the SAP.
Responses to the consultation
Consultation papers were sent out to 53 organisations (Annex A). 14 responses were received:
- The Royal Highland and Agricultural Society of Scotland
- Scottish Landowners' Federation
- The Institute of Auctioneers and Appraisers in Scotland
- National Sheep Association
- Crofters Commission
- Messrs D & E Waugh & Son
- Scottish Agricultural College
- National Farmers Union Scotland
- The Highlands and Islands Sheep Health Association
- Scottish Association for Sheep Health
- Scottish Association of Meat Wholesalers
- Quality Meat Scotland
- Mr James McPherson
- The North Country Cheviot Sheep Society
Responses to the options for use of the national envelope, including SAP top-up
Quality assured producers' scheme
This scheme was the preferred option of 5 of the respondents:
- Scottish Landowners' Federation (SLF)
- Crofters Commission
- National Farmers Union Scotland (NFUS)
- Scottish Association of Meat Wholesalers (SAMW)
- Quality Meat Scotland (QMS)
The general view was that the scheme would recognise and encourage quality-related production practices and sustainable farming activity. Both the NFUS and the SAC suggested that the scheme should run for at least 3 years. Mr McPherson suggested this should be only one of a number of schemes for which SAP top-up should be available.
Some respondents considered it unnecessary and confusing to create a new scheme based on quality assurance membership.
Quota buy-back
The Royal Highland and Agricultural Society of Scotland (RHASS) was the only respondent to favour this option. The RHASS suggested that a buy-back scheme was appropriate because surplus quota exists and such a scheme would put a base on quota value and benefit all sheep producers. The SLF considered quota buy-back to be worth exploring but acknowledged that such a scheme would benefit only a minority of producers and possibly destabilise the supply of quality breeding stock in particular locations. Similarly, the SAC recognised the potential benefits for supplies and prices but pointed out the potential for damage to fragile communities.
Mr McPherson suggested that an alternative to quota buy-back might be a scheme to allow the interchange of sheep and suckler cow units in a holding, with the quota only tradable as sheep quota but nevertheless available for the claiming of cows for LFASS.
Several respondents expressed a view that if it were to be introduced, buy-back should not be financed from the sheep national envelope. Buy-back was not seen as a priority because over-stocking was not considered to be a problem in Scotland. It was also suggested that buy-back would not necessarily improve the quality of sheep produced.
Assistance for Scottish National Scrapie Plan flock owners
Of the main options, this one was preferred by The Highlands and Islands Sheep Association. No other respondents favoured the option although the Scottish Association of Sheep Health was positive about the idea while of the view that it was a low priority. The SAC also thought that the option was not a priority for the national envelope.
Several respondents considered that funding of this option from the national envelope was inappropriate given that resources were already being provided for the National Scrapie Plan and it benefited few producers. The SLF thought it inappropriate because the National Scrapie Plan was primarily concerned with sheep health and welfare. The RHASS thought the idea divisive and the NFUS said that members did not support the proposal, which was evidence of a lack of confidence in the National Scrapie Plan among many sheep producers.
Development of producer marketing groups.
No respondents favoured this option although the Crofters Commission considered it to be a useful idea. The Scottish Association for Sheep Health supported the option but considered improved health status to be more important. A number of respondents did not think there was any value in providing financial support to producer groups when several had already gone out of business. There was some concern about the fact that producer groups tend to be tied to one abattoir. The SAC thought that the proposal was discriminatory, particularly to auction companies who provided a similar service. Others took a similar view.
The SLF and NFUS commented that support for producer groups was already available through existing grant schemes.
SAP top-up
This was the preferred option for 4 respondents:
- National Sheep Association
- Messrs D & E Waugh & Son
- Scottish Agricultural College
- The North Country Cheviot Sheep Society
The SLF and the RHASS considered SAP top-up to be the second best option. The Crofters Commission thought that it might be an option for the future if market values were to become distorted.
The NFUS indicated that SAP top-up had some support from members but concluded that such a use of the national envelope was unsustainable in the light of " A Forward Strategy for Scottish Agriculture".
Other proposals
Six of the 14 respondents put forward their own alternative proposals for use of the national envelope. All but the Scottish Landowners' Federation indicated a preference for their own proposals over those in the consultation paper.
Scottish Landowners' Federation (SLF)
The SLF suggested that consideration should be given to employing national envelopes to sustain agricultural systems that are market responsive and environmentally sensitive.
Scottish Agricultural College (SAC)
The SAC had several proposals:
- establishment of research and technology transfer fund that could support work looking at, for example, eating quality of lamb or technology transfer through training in lamb selection, ram selection, discussion groups and monitor farms etc or marketing and promotion
- extension of sheep health schemes to reduce major threats to economics or sheep production and welfare of sheep
- top-up payment to registered organic flocks, in response to the market demand for sustainable farming systems
- extra payments to extensive units (in terms of stocking density).
The Highlands and Islands Sheep Health Association (HISHA)
Two schemes were proposed:
- £1 per ewe SAP increase for members of HISHA and other similar health schemes
- subsidy for restocking scheme where infected flocks are disposed of and replaced by clean stock.
Scottish Association for Sheep Health
The Association proposed investment to improve the health of the national flock though enhanced knowledge transfer and rewarding farmers who get involved in using breeding stock of known high health status.
The Institute for Auctioneers and Appraisers in Scotland (IAAS)
The IAAS indicated that the provision of resources to the livestock auction sector would be welcome and may be more beneficial to producers in the long rum than the establishment of producer marketing groups.
Mr James McPherson
Mr McPherson suggested that SAP top-up should be provided to producers participating in at least one of a number of approved schemes, e.g.:
- a scheme to encourage the improved presentation of wool to the buyer, i.e. wool with no tar, excessive marks, vegetable matter, foreign debris etc
- quality assured producers' scheme
Increase in the size of the national envelope
Three respondents supported the idea of increasing the national envelope through a reduction of the Sheep Annual Premium:
- Crofters Commission
- Scottish Association for Sheep Health
- Scottish Association of Meat Wholesalers
The remaining respondents were opposed to the idea or had no comment. The NFUS considered it necessary to maintain SAP levels in case 2003 or future years were reference years for decoupled payments following the European Commission's mid term review of the Common Agricultural Policy. The SLF said it could not support the proposal because it would mean a cost for all producers, for the benefit of a few.
Scottish Executive Environment and Rural Affairs Department
August 2002
Annex A
SHEEP NATIONAL ENVELOPE CONSULTATION LIST
- Aberdeen University Centre of Organic Agriculture
- Action of Churches Together in Scotland
- Blackface Sheep Breeders Association
- Bluefaced Leicester Sheep Breeders Association
- Border Leicester Breeders Assoc./Scottish Greyface
- Border Union Agricultural Society
- British Wool Marketing Board
- Cheviot Breed Society
- Church of Scotland
- Crofters' Commission
- Department for Environment, Food and Rural Affairs
- Department of Agriculture and Rural Development
- Evangelical Alliance
- Hannah Research Institute
- Highland & Island Enterprise
- Highland and Islands Sheep Strategy
- Highlands & Islands Livestock Ltd
- Independent Farming Group
- Institute of Auctioneers & Appraisers in Scotland
- Moredun Research Institute
- National Assembly for Wales Agriculture Department
- National Farmers Union (Scotland)
- National Livestock Traders' & Producers Association
- National Sheep Association (Scottish Group)
- North Country Cheviot Breed Society
- Organic Farmers Scotland
- Quality Meat Scotland
- Rowett Research Institute
- Royal Highland and Agricultural Society of Scotland
- Scotch Halfbred Sheep Breeders Association
- Scotch Mule Association
- Scottish Agricultural College
- Scottish Association of Meat Wholesalers
- Scottish Association of Young Farmers Clubs
- Scottish Cashmere Producers Association
- Scottish Civic Forum
- Scottish Conservative and Unionist Party
- Scottish Crofting Foundation
- Scottish Federation of Meat Traders Association
- Scottish Green Party
- Scottish Inter Faith Council
- Scottish Labour Party
- Scottish Landowners Federation
- Scottish Liberal Democrats
- Scottish MEPs
- Scottish National Party
- Scottish Natural Heritage
- Scottish Organic Producers Association
- Sheep Veterinary Society
- Shetland Agricultural Association
- Shetland Animal Health Trust
- Shetland Cheviot Marketing Society
- Shetland Flock Book Society
- Shetland Sheep Society
- South Country Cheviot Breed Society
- St Columbas Episcopal Church
- The Macaulay Land Use Research Institute
- The Rural Development Committee of the Scottish Parliament
- Women's' Farming Union