Scottish red meat sector passes £4bn as demand stays resilient

The organisation says the report underlines the continued resilience and socio-economic importance of Scottish beef, lamb and pork, with the sector sustaining around 40,000 jobs across the supply chain.

Combined economic impact rose by 18.5 per cent in 2025, driven by higher cattle and sheep prices - prime cattle prices averaged approximately £6.60 per kg deadweight in 2025, up 30.3 per cent year-on-year. The value of cattle, sheep and pig farming increased by 17.6 per cent to £1.9 billion, while primary processing rose by 20.2 per cent to £1.36 billion.

QMS Chief Executive Sarah Millar said: “These figures underline the scale, strength and continued importance of Scotland’s red meat sector. At £4.2 billion of output and £1.3 billion of GVA; beef, lamb and pork are delivering major economic value for Scotland and supporting jobs, businesses and communities across the country including in some of our most remote and rural communities.

“Whilst consumers have demonstrated that they continue to value red meat produced in Scotland and the market remains resilient, purchase volumes have reduced as higher prices influence buying behaviour.

"This, alongside declining livestock numbers, import competition and the severe pressure facing Scotland’s pig producers mean that we must continue to ensure focus is on how this sector can be supported to protect future growth, food security and rural livelihoods.”

The sheep sector has had another strong year following record producer prices, export growth and signs of flock recovery. Average Scottish prime sheep prices reached a new historical high of £3.28 per kg liveweight, rising 52.1 per cent over the past five years.

An improved lambing rate and rebound in abattoir production in Scotland also contributed to longer term optimism, with stronger market signals helping to rebuild confidence after three years of decline in the ewe flock.

Despite the stronger economic figures, QMS warned that the reduction in Scotland’s beef cow and pig herds presents a longer-term risk to the sector’s economic and social contribution.

The pace of decline in Scotland’s beef cow herd slowed to 1.4 per cent year-on-year in December 2024, but numbers remained 10.4 per cent below 2021 levels. Meanwhile, the continued net outflow of store and finished livestock limited Scotland’s ability to capture the full economic value of its production, although the outflow of store cattle to finishers in England and Wales slowed further from the peak seen in 2022.

QMS said a growing UK population, firm demand for red meat and declining domestic livestock production mean UK consumers will be more reliant on imports if domestic production is not strengthened.

The report highlights a significant level of switching away from domestic products towards highly competitively priced beef from non-EU sources in the hospitality sector, with non-EU beef rising from around 10 per cent of UK imports to around 25-30 per cent in the second half of the year. Increased imports of specific higher value cuts can have an even more destabilising effect on the domestic market than suggested by the volume of meat alone, affecting carcase balance. For example, the imported volume of striploins from 22 cattle is equivalent to the weight of just a single domestic carcase.

The trend underlines the importance of strengthening domestic production in a geopolitically volatile environment, where food security, high production standards and supply chain resilience are increasingly critical.

Pressure continued to build on the pig sector in the second half of 2025. A growing backlog on farm contributed to falling farmgate prices along with an external shock due to low EU pig and pork prices. EU pig prices fell sharply in the second half of 2025 due to increased production, higher tariffs on EU pork in China and an African Swine Fever (ASF) outbreak in Spain which left the EU’s largest pork producer unable to export to some of its main destinations.

The domestic backlog resulted in more carcases exceeding target weight ranges, lowering prices and pushing up production costs. Meanwhile, low EU pig and pork prices placed downwards pressure on values in price sensitive market segments, driving down prices across the supply chain.

Into 2026, the unsustainable market conditions have prevailed, with Scottish pig prices falling well below the cost of production. As a result, breeding sow slaughter rose by 34 per cent in the first half of the year at Scottish abattoirs, equivalent to the loss of 12 per cent of the breeding sows reported in the June 2025 census results.

QMS Market Intelligence Manager Iain Macdonald said: “The 2025 data tells a powerful story of value, demand and opportunity, but also of pressure points that need urgent attention. Strong cattle and sheep prices have lifted the sector’s economic contribution, but they also reflect tight supply and the consequences of long-running structural challenges.

“The sheep sector’s performance is encouraging and shows what can be achieved when demand, trade opportunities, flock recovery and production momentum align. But the pig sector is under severe strain, and the beef herd remains smaller than Scotland needs it to be if we are to reduce import reliance and protect food security.

“Stabilising breeding numbers, continued productivity improvements, retaining more value in Scotland and restoring confidence across the supply chain are essential if we are to capture the growth opportunity ahead.”