Farming union NFU Scotland is warning that supermarket price cuts could drive more Scottish farms out of production.
NFUS president Jim McLaren said: “If continued aggressive price cuts by retailers spill over into price cuts at farm level…some farmers will cease some production lines altogether and demand will not be met by suppliers.”
The union says that cuts have “eroded almost non-existent margins and there is now clear evidence of de-stocking taking place.”
It has demanded meetings with the four largest supermarkets to discuss low pricing caused by the credit crunch. McLaren said: “Within the last few weeks, the large retailers have begun to adopt aggressive marketing and price cutting strategies.”
It is hoped the meetings will do something to protect farmgate prices.
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