SCOTTISH beef producers will have to become much more cost conscious, Dr Basil Lowman, senior beef specialist with the Scottish Agricultural College said yesterday.

Speaking at a preview day for the Beef '98 event to be held on John Cameron's farm at

Balbuthie in Fife, Lowman said it was not simply a question of choosing between high-cost or low-cost production systems.

''What we have to do is look at the cost of making an investment, and the return it gives.

''A feed can be very cheap but if it gives no performance at all there is no return on that

investment.

''Simply looking at a cost in terms of 'that is a huge bill' or 'that is a small bill' is a very old-fashioned way.''

Farmers, he said, had no idea of what it cost to produce a kilo of beef - and neither did anyone else. Feed costs and fixed costs were very difficult to quantify.

In many units fixed costs, mainly machinery, were so high that they soaked up all the

support payments.

There had to be a continuing drive towards improving

quality.

Despite the general price slump it was still possible to get 225p per kilo, which was very good, even compared with

pre-BSE prices.

However, that was for pure Aberdeen-Angus steers. ''We all have to move towards the 225p mark, especially in suckler herds.''

Host farmer John Cameron said producers had to be continually reviewing their business to get costs down.

His own emphasis was on

low-cost, extensive production.

''I was never clever enough to get involved in the high-cost, intensive side.''

The Cameron system will be demonstrated on site at the Beef '98 event on June 5.

The Camerons farm six units, ranging from hill farms in West Perthshire to the mainly arable operation at Balbuthie. Cattle from all the units will be brought together and displayed in eight paddocks.

''I have gone for integration on the production side,'' said Cameron. ''All the animals we breed we finish.''

Even within a low-cost system there was usually one element of high-cost input and the trick was to find a way of making that element pay a dividend.

One of his high-cost inputs was on the veterinary side, he admitted.

''We believe in prevention rather than cure.''

The Meat & Livestock

Commission will be staging a demonstration to show farmers what happens to an animal once it leaves the farm, emphasising the importance of hitting the right target weight and the right level of finish.

The official opening at the event will be performed by

Donald Dewar, Secretary of State for Scotland, who is to spend the morning touring the exhibits and demonstrations. Eighteen breed societies will be represented and there will be 100 trade stands.

Chairman of the event,

Drew Adam, Newhouse of Glamis, Forfar, said the theme would be ''The Way Forward'', seeking to give farmers practical advice and information which would help them to improve efficiency and performance.