Annex C
Letter to the Convener of the Environment
and Rural Development Committee of the Scottish Parliament from
the Chairman of the National Beef Association (Scotland), 22 January
2004
COMMON AGRICULTURAL POLICY—MID-TERM
REVIEW
One of the most important and fundamental points
of the recent Scottish Executive consultation on CAP reform was
whether decoupled payment entitlement should be made on an area
or historical basis.
National Beef Association, Scotland, ( NBA )
has researched and consulted widely with beef farmers and the
beef industry in Scotland before submitting our response which
was totally in favour of a historical basis.
We look forward to working in the post-reform
market, which will be governed by supply and demand, and will
not be distorted by "coupled" subsidy restraints.
The Scottish beef industry is recovering since
the onset of BSE in 1996, has survived FMD in 2001, and with the
prospect of being able to export to Europe in the near future
will be in a position to contribute positively to the Scottish
economy.
While beef consumption is increasing in UK and
in Europe, and when overall EU production is falling, we look
forward to selling quality beef in a rising market and being less
dependent on subsidy income.
Since 1996 and the onset of BSE, the profit
and loss accounts of beef farmers have depended heavily on subsidy
income.
The transition of CAP reform will have to be
carefully managed and gradual in order to avoid a sudden and severe
loss of income for beef farmers and hence a drop in production.
NBA Scotland are sure that taking the option
of area based payments, or a hybrid of area based payments, would
cause just such a major and sudden loss of income for beef farmers
and would cause a huge exodus from beef farming.
Even a hybrid option of 25% area based and 75%
historical based entitlement would re-distribute as much as 20%
of a beef farmers subsidy income to other farming sectors, some
of which have been previously un-supported.
This letter has been precipitated by recent
comments by Lord Whitty and DEFRA, which have suggested that an
area based system, or a hybrid of it, may be finding favour in
England and there have been comments that Scotland should not
be too dissimilar.
NBA Scotland are adamant that Scotland should
not take the area based option because 2/3 (two-thirds) of Scotland
is classified as rough grazing and the re-distribution of entitlement
that an area based system would cause would be unacceptable, and
would cause melt-down in beef production.
Devolved Scotland has the option to act in its
best interests and should do so.
A recent report on the contribution of "The
Red meat sector to the Scottish economy" states that the
meat industry and associated trades contribute to 6.1 to 6.5%
of Scottish GDP and 40,000 people gain their livelihoods through
it.
As part of this important industry, beef farmers
must be allowed a gradual transition to CAP reform, which can
only be done by taking the historical entitlement option.
NBA Scotland would welcome the opportunity to
be of further assistance to your decisions.
John Bell
National Beef Association (Scotland)
January 2004
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