Scottish Government

Chapter V Putting Scotland First - Developing a New Market Strategy

76 If the new market led vision for the industry is to succeed then a crucial element will be a comprehensive marketing strategy. This must be a long-term strategy, applied consistently and owned by the entire industry working closely together towards agreed objectives. The strategy's aim should be to make a major contribution to raising the profitability of Scotland's lamb and sheep industry. Marketing has a vital role to play both in the UK and export markets. It can raise the profile of Scottish lamb and sheep products within the red meat category by identifying a set of distinctive characteristics unique to Scottish lamb with which consumers can identify. This image and identity must be backed by quality in terms of taste and texture, supported by world class service standards and innovative research and development. The means to do this is in the industry's hands and will depend on the industry's willingness to change in the ways recommended earlier in this Report. Marketing can help to maximise the advantages, by communicating the all round excellence of Scottish lamb products. The following sets out proposals for taking the marketing effort forward.

77 Before turning to the strategy in detail it is important to consider the particular difficulties which lamb faces in the food market place. Lamb consumption is either static or falling in the UK and France which together account for half of the European lamb market. Consumption is a particular problem among the young to middle-aged. The reasons that lamb has fallen from favour among these consumers have been recorded already but to summarise:

a the high price of lamb compared to other cheaper meat products e.g. pork and chicken

b the negative perceptions surrounding lamb's taste including fatness levels and texture which can be a particular problem at certain times in the lamb season thus creating an overall problem of inconsistency

c The lack of convenience and flexibility arising from the way lamb is presented on retail shelves particularly compared to meats like pork and chicken and in particular the lack of ready made meals featuring lamb.

78 Given this backdrop it is essential that every opportunity is taken to emphasise lamb's positive attributes. In particular from a Scottish perspective it is important to find ways to position Scottish lamb at the top of the quality spectrum in European terms and have it acknowledged as a high quality, premium product similar to Scottish Beef. To maximise the contribution which marketing can make to realise this aim the challenge will be to decide:

Marketing The Product To Best Effect

Branding of Lamb

79 The absence of significant branding for Scottish lamb outside Scotland's borders particularly in EU export markets makes developing product identity among consumers very difficult. The UK multiples are keen to emphasise regional brands within regions. They show less enthusiasm for promoting regional products nation-wide. Scottish lamb can be promoted as a Scottish brand in Stirling but less readily so in Bristol. Welsh lamb is the only exception, the result of the work that they have done while Scotland concentrated on beef.

80 The lack of branding for Scottish lamb is a particular problem because of lamb's comparative high price compared to other meats. To overcome resistance to the cost of lamb there is a need to convince the consumer of its particular value by highlighting its healthy nutritious status and its naturalness stemming from the extensive way it is farmed. These qualities are exactly the ones which appeal to the more affluent consumer who is prepared to pay more for less intensively farmed products. Moreover market data indicates that consumers are increasingly interested in these food quality and safety aspects. There is therefore scope to build lamb's profile as an aspirational product which is sought by consumers because of its product attributes rather than considered and rejected on price.

81 It is clear that this cannot be achieved without building product identity through branding activity. To best serve the Scottish industry the brand identity must be built on the general attributes of lamb but also clearly differentiate the Scottish product. The Specially Selected brand has taken both time and investment to develop. It has contributed to the spread of farm assurance, indeed the brand is built on emphasising perceptions of product quality as well as national origin. It is less clear how frequently it features on retail shelves outwith Scotland itself, or what consumer perceptions and attitudes are towards it. Research is needed to determine the position before a decision can be taken on whether Specially Selected should be the focus for branding activity in the UK market or a re-branding exercise is needed. If Specially Selected is shown to have the desired consumer impact and appeal it can be further developed without the need for considerable investment in an alternative approach.

82 There is very little evidence of branded Scottish lamb product in export markets. Yet, Scotland is positively perceived both in the UK and in the three most important export markets France, Germany and Benelux. It is viewed as a place that is rich in tradition and heritage with a reputation for integrity. Its beautiful landscape is associated with quality food and drink. The task in marketing Scottish lamb is to associate it with these positive perceptions, which already exist, yet would take many years and much investment to create. A challenge for the industry is to use these advantages to best effect. The scope for a new Scottish brand or brands in export markets should therefore be considered, drawing on the experience gained in the UK, from developing Specially Selected. The brand identity should be carefully designed in terms of packaging and advertising material to reflect these positive qualities.

Public Relations to Support the Scottish Brand

83 Both Specially Selected and any new brands will benefit from targeted Public Relations activity in the UK and in Europe. This should encompass a selection of high profile product champions who are positively associated with the quality end of the food market. This activity should aim to have Scottish lamb discussed and written about in magazines and newspapers, seen on television and supported with recipe ideas and demonstrations. Opinion formers among food writers and other relevant journalists writing for the most important publications in the UK and key foreign markets must also be convinced of the particular high quality lamb product which is produced in Scotland. Public Relations is expensive and results difficult to measure. There will be a requirement to target resource to a rolling programme which fits within the overall framework of the marketing strategy.

Niche Brands

84 Running alongside this activity is the need to develop niche brands, which can either be based on breed or on tight geographic descriptors. There are already many good examples of Scottish niche brands including Buccleuch Beef and the Orkney Gold range. There are also areas like Shetland actively looking for niche marketing opportunities. The development of small brands must be encouraged where the business case is sound. Taking the niche market route encourages entrepreneurship in the industry and helps bring producers into closer contact with the market they serve. It raises lamb's profile as a quality product and stimulates interest in the whole red meat category.

85 Many businesses are already successfully operating in the niche market area using a variety of different selling methods e.g. mail order and direct delivery, through farmers' markets and increasingly through the Internet. The explosion of interest in Internet trading will provide particular opportunities for those seeking to build these niche markets. The Internet is also the ideal way to put trade customers and individuals in touch with specialist suppliers. This is particularly valuable for encouraging business at the top end of the catering and hospitality markets.

86 Consideration should be given to pilot funding a niche brand development exercise linked to Internet trading. Candidates for support should be asked to submit their brand development and business plans. Those taken forward can be selected on merit. As well as assisting the businesses concerned this initiative should be designed to provide best practice guidance for other potential niche brand companies.

87 More generally, there is a need to provide a bank of market knowledge to help those suppliers interested in developing niche markets to work up their marketing plans and make contact with potential customers and for the establishment of a clearing house to put potential customers in touch with niche brand lamb suppliers.

Recommendations

Where Marketing Effort should be Directed

Increasing awareness of lamb in Scotland

88 To maximise the potential benefit of developing new Scottish brands there is a need to consider where marketing effort can best be focussed to increase branded sales. Traditionally lamb consumption in Scotland has been substantially lower than for other red meats especially beef. Yet the home market must not be overlooked with its potential to highlight the qualities of local lamb both to Scottish consumers and to visitors. The aspiration is to sell Scottish lamb of the finest quality and have it widely recognised as an exceptional product. It is therefore important to have a local market which recognises Scottish lamb as a premium product. This will need the support of those catering companies and outlets whose range of products are recognised as quintessentially Scottish. Work needs to be done therefore, with the Scottish media, Scottish Tourist Board as well as with Scotland's premier catering companies, hotels and food retailers, building on the existing Taste of Scotland activity to develop lamb promotional activity. A particular aim would be to emphasise lamb's status as a quality Scottish food product taking its rightful place alongside Scotch beef, smoked salmon, venison and whisky. Meanwhile the whole industry particularly in rural areas should take every opportunity to encourage local outlets to promote the products which represent their livelihood.

Marketing Scottish Lamb in the Rest of the UK

89 Marketing effort must also be targeted at the retailers of every size as well as the catering and hospitality markets in the rest of the UK. The 'Specially Selected' brand, which features in many multiple outlets in Scotland, is for less evident elsewhere in the UK. This partially reflects the multiple retailers' concerns to avoid distribution costs and prevent a multiplicity of products in a sector currently dominated by two brands, Welsh and New Zealand. Ways must be found to persuade the larger retailers to handle the Specially Selected brand. This will only be achieved where retailers perceive some commercial advantage. It will depend in part on the degree to which Specially Selected products, by displaying a combination of innovativeness, quality presentation and packaging can be tailored to the requirements of particular multiples. It will also depend on successfully creating a product image and identity which appeals to their customers. Work should be undertaken with selected Scottish processors who are able to offer a consistently high specification in terms of taste, tenderness and trimming, to identify retailers prepared to stock such products across the UK.

90 As eating out opportunities increase, efforts must be made to have Scottish lamb featured more frequently on menus. It is particularly important that this effort is targeted at the top end of the market to reinforce Scottish lamb's aspirational qualities. In this area marketing effort could be focussed on niche products. The North Ronaldsay lamb, fed on seaweed on Orkney and sought by quality outlets in London is an example of niche product which is recognised for its unique qualities. There is a real opportunity to generate interest in lamb using such products.

Marketing Scottish Lamb in Key Export Markets

91 The size of the French market for both lamb and mutton means it is likely to continue to dominate export sales. In Scotland real success in this market has been confined to a small number of dedicated exporters who with exceptional quality and service have been able to maintain the profitability of their sales of both carcase and processed lamb. Apart from these companies the rest of the market relies on commodity sales where any slight movement in the value of the Euro can make or break a contract. The French perceive Scotland very positively. This provides a potential advantage for all Scottish food products including lamb and indicates there should also be scope to expand further into branded lamb cuts at retail and catering level. In addition to seeking penetration through traditional routes contact should be made with key retail buyers, upmarket caterers, and also hotel and restaurant chains. There is undoubtedly a potential for new business in these areas. Indeed in France as concern grows about falling lamb consumption French wholesalers are looking for suppliers to approach them with products which can help increase consumer interest. These will not necessarily be similar products to the UK but will be tailored to French taste and presentation preferences. The same principles should be applied to the Belgian and German markets. In Italy Scottish lamb is viewed as commodity meat. Yet there is awareness particularly at the top end of the catering market that Scotland produces very fine meat products, particularly beef. There may be scope to build on this awareness to the benefit of Scottish lamb providing Scottish suppliers are prepared to meet the particular requirements of Italian importers. There is less opportunity for branded products at retail level though this may change if the quality end of the catering market could be successfully targeted.

New Export markets

92 While the French and other Northern European markets remain the most important outlets for Scottish lamb there is a need to examine what lies behind the high level of market penetration by New Zealand into other European countries including Denmark, Sweden and Austria. There is a need to assess whether these potentially lucrative outlets can be opened to Scottish lamb. This report undertook no detailed research in these particular markets and the only data available was three years old.

93 To develop new markets there is a pressing need to establish comprehensive information on market structures, and national food cultures. It will also be necessary to understand lamb consumption trends, and consumer attitudes towards branded Scottish products. This is required for all markets considered to have potential. Without more knowledge it is impossible to predict what type of business will be open to an exporter and whether it will be profitable. Much of this can be achieved through desk based research. The MLC's overseas agents already have much of this local knowledge. If further data is required then a relatively low cost option would be to use marketing graduates for quick in depth market profiles. Activity to establish a marketing database giving comprehensive information on priority markets should be undertaken on an urgent basis. Arrangements for maintaining this database should also be considered.

Approaches to Exporting

94 It is important for any company deciding to develop its exporting activity to equip itself with the skills and disciplines necessary in a sector totally different to the UK domestic market

95 Spain provides an example of how quickly opportunity markets can develop and how local information is vital if such markets are to be retained and developed. There is a perception in Scotland that Spain is an ideal market for the smaller sheep i.e. the lightweight lamb. The reality is somewhat different. The extended Spanish drought of the early nineties damaged the national flock and made imports of light lamb from Scotland an attractive proposition on the basis of price. Since then exports to Spain have declined dramatically. Tight specifications are required for the Spanish market. The premium product is milk fed lamb from sheep milk producing flocks. The bulk of demand is for a very light lamb around 10-12 kilos dead-weight which is still of good conformation with a light flesh colour. Scotland's light lamb does not fit this specification naturally. The Spanish market will take lamb from Scotland when they cannot meet demand from domestic sources and only if the price is right. There is scope for the industry to work more closely with Spanish importers to match the various specifications, which they require. The key to success will be to establish the exact weight and grade required and ensure orders exactly meet specification. There have been instances in the past where these disciplines have not been followed.

96 Exporting companies must be prepared to employ personnel with language skills and an understanding of the culture of their target markets. The Scottish companies who have focussed quietly and successfully on exporting have concentrated on providing consistent quality backed by high levels of service.
Their success has rested on identification of market opportunities, followed by the careful selection of customers as partners, before detailed product specifications are agreed. The mutual respect and confidence, which underpins the relationship of these companies and their customers, takes time, personal contact, and commitment to develop.

97 There are no short cuts. If the industry in Scotland wants to make a success of exporting it must work to obtain a reputation for first class products backed by world class service. This will require exporters to strive to achieve real customer satisfaction. Potential export companies should be encouraged to undertake practical training on methods and approaches to service quality e.g. to allow them to monitor the success with which they meet customer requirements. As branded business develops the feasibility of establishing an export club for Scottish lamb similar to the beef export club should be explored.

Recommendations

Driving The Marketing Effort Forward

The Role of QMS

98 Scotland produces far more lamb than it consumes. This level of self-sufficiency makes it imperative to make a success of selling lamb in other UK markets and abroad. Given the problems facing lamb as a category it is vital to have a proactive, focussed and committed body to drive marketing activity forward. Without this kind of body the task of capitalising on the benefits which flow from the industry adopting a market led approach would be extremely difficult. Therefore the formation of QMS will be of huge benefit to the Scottish industry. It provides a perfect opportunity to create a centre of marketing excellence, which can co-ordinate all the marketing activities for Scottish red meat, building on the successes of previous strategies. Given this role QMS is the natural body to take forward many of the recommendations on marketing detailed in this Report.

99 To provide QMS with the best opportunity for success it will be crucial for it to establish an excellent working relationship with the Meat and Livestock Commission. MLC has a wealth of expertise, market intelligence and contacts, all of which will be important to QMS. Each must seek to influence the other to avoid duplication and maximise the potential for synergy, while providing sufficient scope for Scottish solutions to Scottish issues.

100 To ensure the whole industry owns the marketing strategy and the benefits of working together are realised QMS should seek to build a consensus on the key priorities and supporting marketing plans. There is also a need to provide Scottish based exporters with greater flexibility in terms of promotional activity to allow them to operate in a more autonomous fashion. This will also permit them more quickly to take advantage of new market developments. In the long term, if the industry develops with a greater focus on branded prepared products it is likely that both domestic and export markets companies will take more responsibility for selling and marketing their own products. This is some way in the future. In the meantime, QMS and indeed MLC must continue to work at a generic level to support the industry.

Recommendations

Growing The Market

Addressing the Consumption Problem

101 All companies must constantly search for new profitable sales opportunities for their products. Attempts to grow the market for Scottish lamb can be no different but the issue of how to address the problem of falling demand for lamb particularly among the young both in the UK and France must be tackled. The danger signals are sounding when major UK multiples state that lamb is in danger of being marginalised on their shelves to the level of venison. There is a strong case for all the agencies tasked with promoting lamb within the UK and in Europe to work together, embracing agencies outwith the UK such as Bord Bia and Meat New Zealand.

102 The challenge lies in turning some of the perceived problems of lamb to advantage. For example lamb's natural seasonality could provide a window for each region to market its product in peak condition at mutually agreed times in the seasonal cycle. This could help to maintain consumer interest in lamb year round and benefit lamb sales as a whole. At present there is little or no dialogue between the various National agencies. To encourage a new climate of trust and co-operation a first step could be to find agreement on a set of core values to be used for marketing lamb on a generic basis without reducing the scope for regional identities and themes.

Communication and Education

103 One clear need is to reach out to the young and communicate the benefits of eating lamb emphasising its position as a truly natural product in tune with current lifestyles. Lamb like other red meats is high in its iron content and enjoys other health enhancing features. For example, many mothers use lamb as the first red meat of choice because of its reputation as a meat with low allergen risk. More use must be made of these positive attributes. The first step will be to gather more information to support the particular health benefits of lamb. These and other positive factors can be woven into advertising and PR campaigns. To catch consumers as early as possible ways must be found to target this information at schools, building on the initiatives already launched in Scotland and across the UK with the objective of informing young audiences of lamb's benefits as part of a balanced diet.

Widening Product Scope

104 Already much work has been done by the MLC and others to show that lamb can be as convenient as any other meat products. However decreasing shelf space, lower levels of promotion and a continuing loss of market share tell a gloomier story. It is of vital importance to strengthen and broaden the work to develop Scottish lamb as a convenient meal form in its own right and as a sought after ingredient in high quality convenience foods. The Quick Lamb and Lambburger developments are examples of what can be done but are only a beginning. What is needed is co-ordinated activity between processors and their customers. This will involve experts in food colleges and research institutes together with skilled butchers, catering suppliers, top chefs and restaurants. The aim will be to expand the range of high quality innovative and exciting lamb based dishes from fresh to frozen, produced in Scotland and suitable for use at home and in eating out situations. If this can be successfully achieved it will be of significant value in getting more Scottish lamb onto multiple retail shelves.

Targeting the Catering Market

105 Catering's market share is increasing and Scottish lamb must increase its penetration in this key sector. This will have the benefit of increasing sales in a growth area and where appropriate, associating Scottish lamb with quality outlets. As with any market it is important to analyse the exact requirements for caterers whether it be banquet options or quick pub food. Airlines, health authorities and other organisations will have separate specifications. As out of home eating grows success in this sector will help to reinforce lamb's relevance and appeal to consumers of all age groups in all situations. It will also spin off into the retail markets as consumers look for products, which they have enjoyed in restaurants.

Mutton

106 Total UK production of mutton is approximately 58,000 tonnes, 33,000 tonnes is imported and 7,000 tonnes exported. The majority of mutton is sold into the meat manufacturing industry and to specialised minority markets. In spite of the size of Scotland's sheep flock mutton from cast ewes is sold at a discount compared to New Zealand or Australian mutton. One reason is that imported mutton more closely matches the market specification for fatness levels. Another factor is that the average age of the livestock used for imported mutton is much younger than that of domestic mutton. There is therefore a need to determine the exact specifications required for each of the different UK mutton markets and to ensure that the industry is aware of these specifications. It can then decide whether it wishes to try and match these specifications and thus increase the domestic share of this market. This could help to offset the adverse effect of lost business in split carcases to France. Research into the required specifications should be given priority and the results communicated to the Industry.

Growing the Organic Market

107 The market for organic lamb in the UK remains small but demand overall for organic products in the UK and in Europe continues to grow. Some Scottish sheep farmers are keen to service this demand but the shortage of organic finishing capacity has proved to be a significant barrier and will remain so until more incentives can be put in place to provide additional security to the finishers during the organic changeover period. This will encourage more low ground farmers to switch to organic. In the meantime the multiples are sourcing 75% of their organic requirements outwith the UK. The effect is a loss to the industry of the premium which organic meat continues to attract, although farmers considering conversion to organic production must consider that this premium may well reduce as the organic market grows. Support should be offered during the changeover period to producers and finishers entering the organic market.

Recommendations

Chapter VI Summary and Recommendations

Scotland's Minister for Rural Affairs, Ross Finnie MSP, commissioned this Study into the sheep sector in November 1999:

It became clear from an early stage that searching for marketing opportunities and ways to improve export performance in isolation from the sector's performance overall, would miss the opportunity to examine other issues impacting on the potential success of any marketing strategy. Therefore, the Report, while addressing the marketing issues, looks at the sector in the round.

The Report considers the industry in a national and EU context alongside some of the developments in market structure and consumer trends which are forcing the pace of change in the food market place. It acknowledges that there are underlying factors - such as the current sterling exchange rate and fuel costs - which are having an adverse effect on the industry. While accepting the serious effect that these are having, the Report focuses on the many areas where the Industry can take action itself to improve its competitive position. The Report concludes that a radical change of approach is called for throughout the industry to ensure all activity is market focussed. This involves:

• putting the consumer's needs first, at the very beginning and not the end of the supply chain; and
• applying this concept throughout the entire supply chain from the retail outlet to the farmer.

The Review concludes that this approach gives the industry the scope to create a high quality sustainable business with the potential for profitable returns at every level

The Report acknowledges that there will be those in the industry who need to be persuaded that radical change is required. The requirement to get the process underway is stressed, before it is forced on the industry as CAP support systems are reduced or modified or as membership of the EU is further extended bringing with it more intra-community competition.

The Report puts forward suggestions and ideas on how change might be applied at different levels within the industry supply chain, acknowledging that all levels must play a part in the process of change. There are proposals aimed at bringing together the information already available on production performance and the market place and ensuring this information is disseminated to those who can use it best. The importance of increasing efficiencies at farm level is examined together with the use of peer review to assist this process. Further work on sharing the advantages of breed improvement is called for, while safeguarding the health status of the national flock is considered fundamental. There are proposals concerning the future structure and needs of Scotland's slaughtering and processing sector designed to improve competitiveness and encourage a move from the present carcase-based industry to a customer-led food business. The need to strengthen producer-processor contracts is stressed and investment in various levels of training recommended. Ways to increase efficiency and simplify the production chain is another area dealt with in some detail, in particular, the prospects of increasing the involvement of producer groups and creating greater vertical integration.

The Report then turns to the need for a long term marketing strategy owned by the entire industry built on the strong foundations which the changes recommended will provide. It examines how best to market Scottish lamb by considering the scope for branding, ranging from national to niche. It supports research into the consumer impact and appeal of the Specially Selected brand in the UK and further development of this brand as consumer research dictates. In export markets the scope for a new national brand or brands is discussed. It considers where best to target marketing activity and stresses the importance of information to identify requirements in priority markets. Proposals are given for detailed market data gathering and analysis. The skills and attitudes which underpin successful exporting are reviewed with training in service delivery and measurement recommended.

The Report also considers who should be charged with delivering this marketing activity and concludes that the formation of QMS provides the opportunity to create a centre of marketing excellence in Scotland which by working sensitively with the entire industry and in particular with the MLC can minimise duplication and maximise synergies. The important issue of how best to grow the market is also examined. The need to tackle the problem of falling consumption is highlighted and proposals made to assist the key promotion agencies in the UK, Europe and in New Zealand to work together to stem this decline. The need for lamb to feature in health education campaigns in Schools is mentioned. The importance of widening the range of lamb products to attract new consumers is also stressed. Consideration is also given to the opportunities presented by the markets for mutton and organic lamb.

The Report does not set out to be over-prescriptive, given the complexity of the Industry. It does throw down the challenge to the Industry to think radically about its future and implement the changes recommended. The following is a list of the recommendations.

List of Recommendations

Making Better Use of Information

• A study should be undertaken to examine the existing sources of information, how they may best be aggregated, analysed centrally and disseminated to inform the sector of market developments and sector performance. It should also identify a body to be responsible for the ongoing maintenance of this database. This should proceed on an urgent basis. (Paras 50-51).

Improving Produce Quality and Efficiency at Production level

• Information which can assist producers meet market requirements in terms of specification and classification together with performance bench marking should be disseminated through the proposed integrated information data base. (Para 54).

• A system of monitored farms should be piloted in Scotland. (Para 55).

• The results of the Highlands and Islands Sheep Strategy and other breed improvement programmes should be communicated throughout Scotland by means of a widespread dissemination programme and the penetration of sire indexing for breed improvement purposes in commercial flocks should be improved. (Para 56).

• A sheep health education programme for producers to identify and highlight best practice in sheep health and welfare should be introduced based on work already carried out by SAC and the Sheep Health Associations. (Para 57).

• Continuing emphasis on farm assurance should be maintained and activity to increase coverage and maintain the rigour of assurance scheme requirements should be undertaken. (Para 58).

• A sheep traceability scheme which is cost effective and practical, should be introduced quickly. A comprehensive cost benefit analysis on sheep electronic identification and data transfer should be undertaken. (Para 58).

Developing Value Added Opportunities in the Slaughtering and Processing Sector

• Investment is required to equip the Scottish processing sector to compete in a modern food marketplace. (Para 63).

• The supply relationship between producer and processor needs to be based more frequently on contractual agreements. (Para 65).

• To improve and maintain product quality electro-stimulation, aitch bone hanging and other similar techniques and technologies should be consistently utilised. (Para 66).

• Investment in new product development should be made, focused on getting maximum value from the lamb carcase. Scottish companies should work in partnership building on the work already carried out in this area. (Para 67).

• A centre of excellence should be established in food technology based on existing expertise in various institutions. (Para 68).

• Training programmes should be introduced to improve skills in the sector including business management, cutting and other operative techniques, and also in sales and marketing. (Para 69).

Simplifying and Increasing the Efficiency of the Supply Chain

• The scope to promote bulking up of supplies in the islands and other remoter areas should be explored. (Para 73).

• Using new technology as part of the selling process should be a priority for auction markets. (Para 73).

• More commercial relationships between producers and processors should be on a contractual basis. (Para 74.1).

• Producers should be encouraged to seek membership of producer groups and the number of producer groups rationalised. (Para 74.2).

• The possibilities should be considered of developing a greater degree of vertical integration between producers and processors forming joint ventures and pump priming provided to promote this approach. (Para 74.3).

Marketing the Product to Best Effect

• Research should be undertaken into the consumer impact and appeal of the Specially Selected brand in the UK market. This will allow decisions to be made on how the brand may be further developed. (Para 81).

• The scope for a new brand or brands in export markets should be considered utilising attributes which reflect the positive qualities already associated with Scotland. This can either be on a national basis or working with individual companies. (Para 82).

• A public Relations programme to identify Scottish lamb as a premium product and promote Scottish brands should be undertaken. This should be designed to complement the marketing and brand development strategy. (Para 83).

• A pilot niche branding exercise should be undertaken. It should be linked to the Internet. (Paras 84-86).

• A bank of market knowledge to help businesses develop niche branding plans and promote links with potential customers through an electronic clearing house/website should be created. (Para 86).

Where Marketing Efforts should be Directed

• Work to raise the profile of Scottish lamb in Scotland particularly focussed on the tourism and hospitality sectors should be undertaken to build on existing 'Taste of Scotland 'activity. (Para 88).

• Brand and product development work with selected Scottish Processors should be undertaken with the aim of agreeing supply contracts with multiple retailers prepared to handle branded Scottish product. (Para 89).

• A comprehensive database on national food cultures, market structures, consumption trends and consumer attitudes to Scottish branded product in priority export markets should be developed and maintained. (Para 93).

• Practical training should be provided for export companies on methods and systems to monitor the success with which their exported products meet the necessary levels of quality and service. (Para 97).

• As branded business develops the feasibility of establishing an export club for Scottish lamb should be explored. (Para 97)

Driving the Marketing Effort Forward

• QMS should be the body which co-ordinates marketing activity working in partnership with the industry to mutually agreed priorities. In taking forward its marketing plans QMS should develop a positive working relationship with the MLC and Scottish processors avoiding duplication and promoting synergy. (Para 98-99).

Growing the Market

• The major agencies promoting lamb in the UK and Europe including New Zealand should explore the scope to promote lamb generically and find ways to overcome the disadvantages of seasonality. (Para 101-102).

• More work should be undertaken to collate information on lamb's attributes particularly its health enhancing features. This information should be used in Public Relations and advertising campaigns. This information should also be used in initiatives designed to promote healthy eating in schools. (Paras 103-104).

• Co-ordinated activity between centres of food technology, skilled butchers, chefs and other sources of expertise should be undertaken to assist with widening the lamb product range. (Para 104).

• Catering should be regarded as a key growth area and work undertaken by companies and central agencies to increase Scottish lamb's penetration of this market. (Para 105).

• The specifications required for the UK mutton market should be identified and communicated to the industry as a whole in Scotland. (Para 106).

• Support should be offered to producers including finishers who wish to change to organic lamb production. (Para 107).

Appendix 1

Scottish Auction Marts
(s = seasonal)

Appendix 2

Farmers Co-operatives and Marketing Groups Scotland