NFU Scotland has expressed its concern at the announcement today by Anglo Beef Processors (ABP) that it is to close its lamb processing plant at Bathgate, West Lothian. However, NFUS has stressed that the lamb market is growing and the priority for the industry is to develop new processing facilities in Scotland to take advantage of this. Today's announcement follows the recent acquisition of the Kepak processing facility in Turiff by Morrisons which is expected to reduce lamb processing activity.

Around three million lambs are born in Scotland each year, yet less than half (1.35 million in 2004) are processed in this country. The majority are handled in England. A third of all the lambs processed in Scotland went through the ABP Bathgate plant.

NFUS has also repeated its concern at the contraction in the local food processing sector.

NFUS President John Kinnaird said:

"The reduction in Scottish lamb processing must be addressed as we are losing the ability to add value to our produce in this country. Whilst today's announcement will come as little surprise to those in the industry as there had been uncertainty hanging over the plant for a while, there will still be concern at a further drop in Scotland's lamb processing activity.

"We only process around half our annual lamb crop and ABP Bathgate and the Kepak plant accounted for 40 per cent of that activity so this latest reduction is a significant dent.

"There is growing worldwide demand for lamb and work must continue to develop these markets which will in turn be the incentive for local lamb processing facilities to be developed. These facilities are crucial to securing local outlets for farmers, providing jobs in rural areas and ensuring that we are adding value to our produce in this country.

"Scotland's food and drink processing sector is facing a worrying reduction in facilities. As well as today's announcement, in the last few months, two grain malting facilities in Carnoustie and Kirkcaldy and a pigs processing plant in Buckie have announced their closure. Kettle Produce in Fife, one of the UK's largest supermarket suppliers of vegetables, has also recently announced job cuts. This is a worrying trend for farmers, the rural economy and, ultimately, consumers. The trend sits in contrast to the massive profits being made by the big players in the food retail sector. There is a serious question of fair trade hanging over our whole food and drink industry."