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letter 25 October

Dear Producer

Disease Update 25 October

In view of a number of recent developments, I would like to give you an update to the animal disease situation in Scotland.

This is now the third month since the first case of Foot and Mouth Disease was confirmed in Surrey on 3 August 2007, and throughout this very difficult period I have been impressed by your commitment and forbearance. The re-emergence of disease in September could not have come at a worse time given the need for movement of animals, compounded as it was by the effect of earlier restrictions. However, you, and your representatives, have pulled together in making the necessary controls work, and this enabled me to lift the remaining FMD restrictions on 17 October. On that day, the Restricted Zone in Scotland was removed, and we have now returned to the movement regime in place before FMD was confirmed in August - i.e. the 13 day standstill with exemptions and the automatic resumption of pre-approved separation agreements.

The partial resumption of meat exports from 12 October was a further encouraging development, and I would like to thank those producers and processors who worked hard to meet the stringent conditions and offer meat to the European market. This sent a positive signal to our customers that high quality Scottish produce is back on the menu and intends to stay there. I have been further encouraged by the relaxation of export conditions agreed on the 19th of October by Brussels for example removing the requirement for animals to be sent direct to slaughter and reducing the residency requirements from 30 days to 21 days before being sent to slaughter. I will continue to press for more relaxations.

While these developments may look more like normality, I realise that the livestock industry is now operating in an economic context that is very far from normal. The Scottish Government has considered practical options to support the sustainability of the industry, both in the short and in the long term. I am pleased to announce that the Scottish Government has developed a package of support which balances the need to provide immediate relief with looking ahead and supporting a sustainable and resilient red meat sector. In total this package, combined with actions already taken, such as the Sheep Welfare Scheme, will be worth up to £25 million. The principal elements are:

Scottish Ewe Scheme - the sheep sector has been the most severely affected and needs real support to maintain itself into the next breeding season. The Scottish Government will pay £6 per head on breeding ewes and the money should be in the bank account of individual producers by mid November.

Sheep dip disposal - at the direction of Scottish Ministers, SEPA will cancel the second instalment of the disposal to land charge in 2007-2008. This will benefit 1,600 sheep farmers to the extent of £91 each.

Marketing and promotion - I have allocated £1 Million to Quality Meat Scotland to help promote the long term resilience of all the red meat sector and to enhance supply chain development for the longer term.

In addition to this direct support the First Minister is writing to each of the major food retailers to ask them to support the meat industry by ensuring a fair price is paid to Scottish farmers and highlighting the recent announcement by McDonalds to raise its prices paid to farmers to help support the industry. This initiative builds on earlier work undertaken by my Department to encourage greater sourcing of Scottish meat by public sector organisations.

We are all aware that farmers, and other members of rural communities, have been seriously affected at a personal level by the implications of this outbreak. We therefore intend to offer £200,000 to the Royal Scottish Agricultural Benevolent Institute to help individuals in need of personal support. £60,000 will also be made available to the Royal Highland Education Trust to help raise the profile of Scottish food and farming in the wider community.

Turning to the bluetongue situation, you will be aware that a recent case in the Peterborough area has meant the extension northward of the bluetongue Protection Zone declared in midland and eastern England. This Zone now extends as far north as Yorkshire. We hope that, supported by our industry stakeholders, we can work to keep Scotland free from this disease as long as possible. As in so many aspects of fighting disease, your support remains vital. I urge you to be aware of the signs of bluetongue and familiarise yourselves with the vector control measures explained in the letter from the Chief Veterinary Officer (Scotland). Although we can hope that the colder weather will kill off the midge vector and stop the northward spread of the virus, we must remain vigilant, and you, as farmers, are in the front line of our defence.

Thank you once again for your patience in dealing with the difficulties inseparable from an outbreak of animal disease. I am hopeful that we are now genuinely in the exit phase of FMD, and I am confident the measures we have introduced will help lift industry from this difficult period.

RICHARD LOCHHEAD

Page updated: Thursday, October 25, 2007