SAC chief warns on subsidy chasing

2 February 2000



SAC chief warns on subsidy chasing

SCOTLANDS beef and sheep producers were warned yesterday (1 February) of the dangers of pursuing subsidy at the expense of quality, by the head of the Scottish Agricultural College.

Peter Cook told a Meat & Livestock Commission conference in Perth that the sheep sector had gone for subsidy in some cases as a means of maintaining income.

But he found that that the quality of the lamb had suffered as a result.

He said there were several instances where too many ewes had been retained in order to claim another years subsidy.

This had led to a drop in price because there was not enough finish on the lambs.

Cook said that despite reforms to the common agricultural policy there was still an incentive to over-produce.

At the same conference, Stuart Elder, director of agricultural business for the Bank of Scotland, said the strength of sterling would be the dominant variable for farm incomes over the next one to two years.

He said that for every 1p fall in the value of the Euro, UK farm incomes would reduce by 100 million.

• Bleak outlook on Scots farms, FWi, 29 January, 1999
• Scots farmers face prospect of zero income, FWi, 06 November, 1998
  
• The Herald 02/02/2000 page 21