ABP takeover of two Scotbeef plants sparks fears for Scottish beef industry

NFU Scotland president Martin Kennedy said the move represents a “significant concern” for Scottish beef producers and processors, as any consolidation in meat processing risks depriving the market of healthy competition. He stressed the future of the live ring is critical for ensuring primary producers get paid a fair price and must be secured throughout Scotland.

At the same time, the industry body welcomed ABP’s commitment to maintain Scottish processing and packaging sites operational and expressed relief that Scotbeef will remain open for business in Inverurie, Annan and East Kilbride.

“These sites play a crucial role in adding value to farm businesses, as well as supporting local communities through jobs, and protecting our standards and provenance,” Mr Kennedy said.

“It is imperative that investment continues to focus on local multi-species abattoirs to maintain Scottish production of our iconic red meat sector,” he concluded.

Commenting on the news, National Beef Association CEO Neil Shand the primary concern was for the Bridge of Allan facility in Stirlingshire to remain operational, as the plant processes 1,800 cattle a week and is therefore a vital source of income for many local farm businesses.

“From our perspective, the most important thing is that Scottbeef’s production and processing capacity at Bridge of Allan and Queenslei has been protected, because that is fundamentally more important to the Scottish and the GB beef industry than anything else at this time,” Mr Shand told Farmers Guide.

However, he added that concerns remain over the industry ending up in fewer hands and future developments will have to be monitored “very carefully”.

Company leaders promise a “smooth transition”

The sale of the two Scotbeef sites is expected to complete by the end of July 2023, after which the facilities will become part of ABP’s UK meat division that also includes an existing processing facility in Perth, Scotland.

It is speculated the decision to sell was made due to the company losing its Aldi beef supply contract to ABP earlier this year, which accounted for approximately 75% of Scotbeef’s total beef production.

The change of ownership was described by Scotbeef CEO Robbie Galloway as “the right move for our staff and producer suppliers, and also for Scottish agriculture as it secures the ongoing viability of these slaughtering and packing facilities in Scotland”.

Mr Galloway was quoted by the media as saying: “Like Scotbeef, ABP is a family-run business and we have been working closely with them to ensure a smooth transition. We are appreciative of the support and help we have received from the Goodman family and their ABP colleagues, as we have gone through this process. We wish them well for the future with this acquisition.”

ABP chief executive Frank Stephenson said the company is looking forward to working with the Scotbeef team to “ensure a smooth and seamless transition” for suppliers, employees and customers alike.

“It will be very much business as usual with a commitment to building on Scotbeef’s well-established tradition and reputation for high quality Scottish red meat products,” he confirmed.

Employing over 13,000 colleagues across four divisions, ABP Food Group is one of the largest European meat processors supplying fresh and frozen meat products to retailers and food service providers in the UK and worldwide.