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Our current target is to introduce the 7 per cent requirement in 2027. That is where things sit, and that will be developed as we move forward. There will have to be a lot of discussion if we are ever to move that percentage upwards.

We feel that there are enough options to allow farmers to reach that 7 per cent. However, as we said, this is an on-going process. The more conversation we have, the more options we can bring forward for farmers to tap into. I am more than happy to have a look at all that.

The first thing I will say is that you keep saying “your”. I hoped that what we had was ours. This is supposed to be across all parties. We have all agreed that we are looking to ensure that Scotland can deliver the right outcomes. I presume that, by saying “your”, you mean that you are not on board with that. If you have an expanded list that you would like to put to us, by all means, please send it to me, Mr Eagle. I am more than happy to meet you.

It also brings in the derogation for the calving interval for small producers.

Could you repeat that, convener?

Yes.

There are not just four options.

There are four extra options—in addition to all the other ones. There are farmers who have been doing this since 2015. Some farmers pushed back on doing anything in 2015. Then, when they got their heads around it and started to implement it, it became much easier and the pushback became zero. We are in the same position again, because we are asking farmers to do things that they have not done before. We are asking them to change. We have added the additional four options to take into account some of the issues around islands, for instance. We are listening to what stakeholders are telling us, including about where the issues are. Not everybody is going to get everything they want out of this—that is just the way it goes. I can assure you that plenty of environmental non-governmental organisations would tell us that we have not gone nearly far enough. We are bringing in policies that will allow us to take the industry with us and get us on the journey to deliver the outcomes that we want.

I will let Paul Neison answer that question.

Good morning again, and thank you for inviting me to speak about the Sheep Carcase (Classification and Price Reporting) (Scotland) Regulations 2025. The draft instrument seeks to introduce mandatory sheep carcase classification and price reporting for abattoirs that process above the threshold of 500 sheep per week on a rolling annual average.

The regulations will align sheep with cattle and pigs as well as aligning with EU regulations, including the use of the EUROP grid, which is the system that licensed classifiers use to grade carcases and which underpins payments to farmers. The regulations have been drafted in response to an industry review, and subsequent consultation has shown that producers and processors are supportive of the move to align sheep classification rules with those for beef and pigs.

I want there to be a more transparent, productive and efficient sheep market, and these regulations will ensure that farmers are paid a fair price that is based on the quality of their sheep, with prices reported and made publicly available. The standardisation of classification rules will then help producers to rear lambs that will fit market specifications and consumer demand.

Many plants across the United Kingdom, including those that are likely to meet the threshold figure in Scotland, already carry out sheep classification on a voluntary basis. The regulations will therefore result in little or no cost to business, and the licensing of classifiers by Government inspectors is free of charge.

The dates on which regulations will come into force across the UK are aligned, with the exception of the date for the regulations for Northern Ireland, which will commence one month later. The main point that was highlighted in responses to the consultation was that, to operate sensibly, the system must be implemented simultaneously across the UK.

Classification machines are already operating for cattle, and a further aligned date of February 2027 will provide for the introduction of automated classification methods for sheep. In the year leading up to February 2027, data will be collected from a large sample, to support the formula or algorithms that will be used in setting up any new automated grading equipment before the technology is then authorised for use.

The regulations also mean that any infringements will lead to enforcement procedures. Scottish Government meat and livestock inspectors will carry out unannounced inspections on behalf of the Scottish ministers, record their findings and operate a risk-based approach. Although operators will be supported in relation to classification, reporting and the required presentation specifications, any operator that is found to have committed an offence will ultimately be liable for a fine, as is laid out in the regulations.

I hope that those remarks are helpful in setting out the rationale for the instrument. I am happy to answer any questions that members may have.

I am giving you the clear message that my thinking right now is about how we take the sector with us by delivering policies that it will buy into. As I said to the convener, we are asking people to meet a 5 per cent EFA requirement in 2026, which will go up to 7 per cent in 2027, and we are already getting pushback. You have seen NFU Scotland’s letter to the committee. Despite the fact that NFUS has been in the meeting rooms, in ARIOB and in more discussions than any other stakeholder, we are still getting pushback from it on the increase to 7 per cent. My biggest consideration right now, Mr Eagle, is making sure that we take the industry with us on any new policy that we introduce.