Millers of Speyside transitions to exclusive beef slaughtering facility

The Grantown abattoir streamlines operations amid rising costs and labor shortages.

The Millers of Speyside abattoir, located in Grantown, is set to undergo significant operational changes starting next year. The facility will exclusively focus on beef slaughtering, a strategic move prompted by ongoing labor shortages and escalating operational costs. Managing Director Sandy Milne emphasized the necessity of streamlining the business to ensure its sustainability in a challenging economic landscape.

Operational changes and outsourcing

As part of this transition, Millers will cease offering private kill services for pork and lamb.

Instead, the company has arranged for private pig slaughter services at the Brechin abattoir, ensuring that their retail butchery customers still have access to these products. Mr. Milne stated, “We are simply streamlining the business. We are outsourcing the supply of lamb and pork for our retail butchery customers.” This decision reflects a broader trend in the meat industry, where many businesses are adapting to changing market conditions.

Labor shortages and economic pressures

The decision to pivot to a beef-only operation is largely influenced by the difficulties in recruiting skilled labor, particularly in the wake of the Covid-19 pandemic and Brexit. Mr. Milne noted, “It’s the lack of staff, of skilled labor. This kind of job is very difficult, and local people don’t want to do it.” The company, which typically employs between 35 to 40 people, has found it increasingly challenging to fill positions, leading to the need for operational adjustments.

Financial implications and market challenges

Financial reports for the parent company, Scotia Sales and Marketing, reveal a stark contrast in profitability, with pre-tax profits plummeting to £6,493 for the year ending January 31, 2024, down from £112,570 the previous year. Despite this decline, turnover increased to over £19 million, indicating a complex financial landscape. Mr. Milne described the past year as “yet again another extremely difficult trading year,” citing record-high livestock prices and spiraling operational costs as significant challenges.

Consumer trends and the future of red meat

As the cost of living continues to rise, the price of red meat has become unaffordable for many UK consumers. Mr. Milne pointed out that lamb is increasingly viewed as a luxury item, with beef following suit. This shift in consumer perception poses additional challenges for the abattoir, which must navigate a market where demand for certain products is declining. “We have had to look at everything,” he remarked, underscoring the need for adaptability in the face of economic pressures.

In summary, the Millers of Speyside abattoir is making strategic changes to ensure its viability in a challenging market. By focusing exclusively on beef slaughtering and outsourcing other services, the company aims to streamline operations while addressing the pressing issues of labor shortages and rising costs.