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New survey to gauge farmers’ business intentions as costs rise

GB animal feed production is down 5% and is expected to decline further.
GB animal feed production is down 5% and is expected to decline further.

A survey that aims to gauge farmers’ business intentions in light of unprecedented input costs and flatlining output prices has been launched by NFU Scotland (NFUS).

The results will be used by the union when lobbying in Westminster and Holyrood and are expected to add weight to ongoing efforts to seek fairer pricing from retailers. The responses will also give an indication of the implications for the wider food supply chain and the nation’s food security.

A similar survey was conducted by the union six months ago and the responses from 340 producers revealed that 92% had already altered their production plans as a result of unprecedented cost increases for key inputs such as fertiliser, energy, fuel and animal feed.

The biggest reductions in output were predicted to occur in livestock, pigs, poultry and horticulture.

NFU Scotland survey to ‘provide invaluable information’

Lisa Hislop, the union’s newly-appointed policy adviser for livestock and less favoured areas (LFA), said: “This intention survey will provide invaluable information for both the livestock and LFA committees as we gather evidence on a multitude of issues and the depth of their impact on the industry.

“Moreover, the regional breakdown will give clear insight into specific issues faced by remote areas.

NFUS policy adviser Lisa Hislop. Image: NFUS

“It is crucial that we have the evidence to highlight future intentions of farmers and crofters across Scotland and their ability to continue to deliver high quality of food.”

Speaking at a press briefing, NFUS president Martin Kennedy said a robust evidence base was essential to inform discussions with politicians, stakeholders and the wider agri-food supply chain, including consumers.

“The results in June pointed to significant ramifications for our food and drink sector and all those businesses upstream and downstream who rely on farmers and crofters,” he added.

‘Retailers need to take heed of the results’

“We need to know if that picture has deteriorated. And retailers need to take heed of the results.

“We went to great lengths earlier this year to highlight to supermarkets the impact that prohibitive costs were having on those who produce eggs and the need to pay producers a fair price.

“Those warnings were ignored, and we are now faced with restricted sales in some shops because of shortages and retailers finally waking up to the damage their short-term approach to pricing has caused.”

You can take part in the survey here. It closes on January 10.

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