NFU Scotland has called on shortbread makers to work collaboratively with dairy farmers to source Scottish butter for their biscuits.
The farmers union made the comments in the wake of an announcement by Rural Economy Secretary Fergus Ewing that government will fund an urgent feasibility study into the collective buying and storage of butter.
The Scottish Agricultural Organisation Society is carrying out the study on behalf of shortbread makers, confectioners and bakeries.
Mr Ewing said: “The price of wholesale butter has doubled since the start of the year, with wholesale prices at a record high. This is a concern for many of our smaller food and drink manufacturers who use butter as a primary ingredient.
“We have listened to the concerns of our manufacturers and this urgent feasibility study will explore opportunities to exploit buying and efficiency savings made available through collaboration, boosting productivity and competitiveness within domestic and global markets.”
NFUS policy manager George Jamieson said the feasibility study must acknowledge the “crucial part” primary producers play in the supply chain.
He said although butter and cream prices had risen in the past year, farmgate prices had not risen to the same extent.
Mr Jamieson said: “Dairy farmers are faced with the double challenge of wafer -thin margins and carrying the bulk of the risk from volatile markets.
“Without that being addressed, it is evident that many will continue to leave the sector, including the most efficient, as the considerable ongoing investment is simply not worthwhile.
“Scottish dairy farmers can produce milk for dairy products like butter to the high standards needed underpin iconic Scottish products, including shortbread, and in return those manufacturers should be seeking out Scottish dairy ingredients as a first choice.
“The challenge for the supply chain is to develop collaborative initiatives that mitigate the effects of volatile markets.”
