Launch of the Dumfries and Galloway Food Cooperative

The cooperative which is called ‘The Dumfries and Galloway Food Cooperative’ was established following support from Scottish Enterprise which included research carried out by local consultants CARA that identified the demand and support for such a facility in the region. The Dumfries and Galloway Food Cooperative is Chaired by Percy Weatherall with support from Maggie Gordon.

As part of the development of the co-operative a fact finding tour of abattoirs and meat processing facilities in the North of England, Central Scotland and Islay were undertaken. On Islay the group met with Dunlossit Estate Manager Chloe Randle who developed the recently constructed Avonvogie Abattoir and the successful Meat Islay branding initiative. Robin Austin who took part in the tour said “It was a great opportunity to speak to farmers and see how they were adding value to their meat and it allowed us to network and discuss the main issues” and Maggie Gordon added “The tour was very beneficial it allowed us to get a complete contrast of scale and technology between Avonogie and Scotbeef Abattoirs.”

Daniel Hird of Scottish Enterprise who initiated the project commented “ The Directors of the Dumfries and Galloway Food Cooperative should be applauded for their hard work, professionalism and commitment to make this happen, it is quite an achievement to get this far. However they all recognise they have a long way to go before we see the development of a new all encompassing meat processing facility in the region but they are firmly set on achieving that goal.”

In order to move the project forward the cooperative are now considering a number of potential locations for the site of the abattoir within a 15 mile radius of Castle Douglas with close proximity to the A75. Work has began on the development of a full business plan and the facility design is being explored, additional support for this stage of the project has been pledged by Quality Meat Scotland (QMS) and the Scottish Agricultural Organisational Society (SAOS).

In terms of funding the cooperative are currently planning to make an application to the Food Processing, Marketing and Co-operation Grant Scheme which is funded through the Scottish Rural Development Programme for a contribution towards the set up costs with the remainder of the funding raised by the cooperative through either membership fees or the sale of shares.

Daniel Hird further added “Scottish Enterprise is focused on industries with the potential to drive better economic growth. The launch of the Dumfries and Galloway Food Cooperative presents livestock farmers and butchers in the region with a real opportunity to help market growth and increase profitability through adding value and sustaining and expanding local supply chains. I would urge anyone with a business interest in local meat production to join the cooperative.”

For further information and details of how to become a member of the Dumfries and Galloway Food Cooperative please contact The Company Secretary and Treasurer Caron Kennedy Stewart on 01776 860246 or email info@clashsaddlebacks.co.uk.

Background notes

Alan Stannett from CARA Consultants carried out the study, the results of which demonstrate:

• 92 per cent of those surveyed (from a sample of 50 food chain consultees) demonstrated overwhelming support for a cooperative model multi species slaughtering and processing plant in the region.
• Producers see adding value as a key way to increase business profitability and see the proposed plant as a priority
• Local butchers were also very supportive as a means to sustain and develop local supply chains
• Demand for the facility is estimated to be in the region of 100 – 150 cattle; 300-400 sheep: 200-250 pigs per week
• This would require a plant of approximately 1400 metres squared, with a capital setup cost of £2-£2.5 million (excluding site purchase costs)
• Operating costs would be in the region of £800,000 per annum, creating approximately 20 jobs.
• The value of livestock passing through the plant would be around £6-7 million per annum which currently leaves the region for slaughtering and processing. Very little red meat value add currently takes place in Dumfries and Galloway.
• The study looked at a number  of potential business models with overwhelming support for a cooperative model, with a separate property and operating business entity
• There is a willingness to support the project financially with over £200,000 private sector funding pledged without detail of the actual project costs being known
• The project is also supportive of the aims and objectives of the Scottish Rural Development Programme (SRDP) and is one of the key aims of the new Cabinet Secretary for Rural affairs Richard Lochhead, to increase the number of facilities and reduce barriers to supply chain and market growth.