The Scottish suckler herd - what's the beef?

Scotland has of total agriculture area of 5.5m hectares – a 25% greater land base than the Irish agricultural area. However, over half of the Scottish land area is comprised of rough grazing, a quarter defined as grass and about 10% is classified as arable ground.

The majority of this rough grazing is in the west and northwest of the country, as well as in the Cairngorms National park in central Scotland.

As of the June 2019 Scottish Government Agricultural Census, suckler cow numbers sit at 417,000 head

The most productive land is primarily located along the east coast of the country. The southwest has a lot of good grass-growing ground, reflected by the fact that the majority of dairy farms are located in this area.

As of the June 2019 Scottish Government Agricultural Census, suckler cow numbers sit at 417,000 head – less than half that of the Irish suckler herd. This is a 1.6% decrease year-on-year and as can be seen in Figure 1, the national herd has been contracting by around 1% per annum over the last decade.

Interestingly, there are 1m fewer total head of cattle in Scotland today than there were in the mid-1970s.

Average herd size

The average suckler herd size currently sits at 48 cows – nearly three times the size of the Irish average. However, there are vast regional differences. For example, the average herd in the Outer Hebrides and Shetland is around 12 cows. The north and southeast are the main powerhouses when it comes to cow numbers, with an average herd size of 57 and 67 cows respectively.

A 300-400 cow herd is not uncommon in the main suckler areas

With a lot fewer cows than Ireland and a much larger average herd size, this means that a large proportion of cows are held by a relatively small number of farms. In fact, just 14% of beef holdings with 100 cows or more account for over 50% of the beef cow herd. A 300-400 cow herd is not uncommon in the main suckler areas.

This trend could become more pronounced in years to come, as it seems to be those in the middle ground that are feeling the pinch the most. The reduction in cow numbers is much greater on holdings with 100-149 cows at 2.7%, compared to those with more than 150 cows reporting a below-average contraction of 1.3% year-on-year.

Labour

Labour is a serious issue on many beef farms. In Aberdeenshire, a 100- to 120-cow herd would be seen as a typical one to one-and-a-half labour unit family farm, with family labour picking up the slack during the busy periods of the year.

Encouraging skilled stockpersons into the sector seems to be difficult, as other farming enterprises such as arable seem a more attractive option.

Those with 100 to 150 cows are generally contracting slightly to reduce the need to bring in labour

It is for this reason that we start to see a disparity in the rate of cow number reduction between the medium and larger herds.

Those with 100 to 150 cows are generally contracting slightly to reduce the need to bring in labour, while those that are above the 150-cow mark have the dilemma of either shrinking the herd to manage with family labour, or expanding enough to justify an extra labour unit on the farm.

Dairy influence

Another stark contrast to Ireland is that suckler cows outnumber dairy cows by nearly three to one. As a result, dairy genetics have a much lower influence on the overall suckler herd.

Aberdeenshire

With the exception of the southwest of the country, a herd of first-cross beef off a dairy cow is much less common, especially in the northeast where you can nearly count the number of dairy farms on one hand.

The Simmental and Sim×Lim cow remains a popular choice in the area

There has been a return to more native breeding for the cow herd in recent years, with Aberdeen Angus and Shorthorn seeing a revival over the past five to six years, and Salers and even Stabiliser becoming more commonplace.

The Simmental and Sim×Lim cow remains a popular choice in the area and, when combined with a Charolais bull, produces an animal suited to the largely arable area with more intensive finishing systems and younger slaughter age more common.

Nationally, the average slaughter age of steers and heifers is quite low at 22 and 20 months respectively.

Sire choice

Limousin is the most popular sire in Scotland, accounting for nearly 25% of beef calf registrations in 2019. Aberdeen Angus accounts for 21% of calf registrations, after continuing to increase in recent years.

Charolais (17%) and Simmental (15%) are the next most popular breeds, however they have both seen significant declines in the last number of years, with registrations back 8.4% for Charolais and 5.9% for Simmental compared to 2018 figures.

Many farmers feel that this is due to a tightening of carcase weight specifications by abattoirs in recent years, as well as farmers looking to breed a smaller, more compact cow.

Beef output

Beef production accounts for over £830m (€958m) or 26% of the total agricultural output in Scotland. The total prime cattle slaughter in 2019 was 386,000, with an average carcase weight for steers of 382kg, heifers 344kg and young bulls at 364kg. Just 12% of prime male cattle were slaughtered as young bulls in Scotland in 2019.

The figure in Ireland is almost double that at 23% over the same time period. This is primarily due to the fact that 93% of Scottish beef on a value basis remained within the UK in 2018 with 24% staying in Scotland and 69% heading south of the border.

Scotch beef PGI

Scotch beef has a Protected Geographical Indication or PGI status from the EU, which looks to protect high-quality traditional and regional food products that are unique to a geographical area.

There is some debate on whether this PGI status will be retained once the UK leaves the EU

The coveted status, which was awarded in 1996, has done wonders for the Scottish beef industry and sees it typically achieve a beef price that fluctuates between 10p/kg and 30p/kg (8c/kg to 26c/kg) above the English base price at different times of the year.

There is some debate on whether this PGI status will be retained once the UK leaves the EU, which is of grave concern for Scottish beef farmers. However, there are other examples of PGI status’ being awarded to products from outside of Europe.

In order for beef to carry the Scotch Beef PGI brand, cattle must be born, reared and processed in Scotland and spend their entire life on a Quality Meat Scotland (QMS) Assured holding. At the point of slaughter, the animal must also be:

It is a whole chain assurance and includes assurance schemes for feed suppliers, livestock haulage, auction marts and processors.

Beef price

The current beef price in Scotland is £3.49/kg (€4.02/kg), excluding VAT for R3 steers and heifers. Cow beef is quoted at £2.76/kg (£3.19/kg), excluding VAT at 4%.

Scottish Suckler Beef Support Scheme

The Scottish Suckler Beef Support Scheme, or beef calf scheme as it is more commonly referred to, is a coupled payment per calf with an annual budget of just over €44m. The scheme runs from 1 January to 31 December each year and the payment rate is set to match the number of eligible animals claimed in each scheme year. Over the last few years, this has typically seen a payment rate of between £80/calf and £85/calf (€92 - €98/calf).

This is paid on every calf that is at least 75% beef-bred and can be claimed once the calf reaches 30 days old.