Addressing the NFU Scotland agm in St Andrews, its president John Kinnaird said that Scottish farming has reached a crossroads, which means tough decisions for farmers and clear priorities for industry action.
In front of 200 delegates at the agm, Kinnaird said there is as much uncertainty in the industry as there has been for many years, and outlined the three main issues driving this uncertainty, which are priorities for NFUS action over the next 12 months and beyond.
• Poor farmgate prices;
• Uncertainty over the future of support payments;
• The increasing and costly burden of regulation.
Kinnaird said: “The upheaval in the farm support system, an increasingly competitive market place driven by free trade and the growth in supermarket power have brought our industry to a crossroads. These major changes have inevitably brought uncertainty, but as we look at the options facing our individual farms for the future, we must remember the opportunities facing us and the integral role we continue to play in the rural economy. With increasing emphasis on healthy, quality and local food and recognition of the importance of environmental stewardship, our relevance to modern society is clear.
“However, to grasp the opportunities in front of us, Scottish farms need to be sustainable and there are three major priority areas for NFUS and the industry.
“Firstly, our relationship with others in the food supply chain, particularly supermarkets, will have as much influence on our future as anything else. As the major supermarkets have grown in size, our ability to secure a viable return from the market has dwindled. We must recognise our responsibility to ensure we are delivering the right produce, at the right time to the right specification. But government and the supply chain has a responsibility to ensure the market does not fail farmers who do that," he said.
“The need for a transparent and trustworthy relationship between retailers and the rest of the supply chain has never been more important. It has huge implications, not only for the thousands of family farming businesses across Scotland, but for the countryside and rural communities. We continue to fight for an effective Supermarket Code, to curb the misuse of supermarket power. Likewise, we need a competition policy which encourages, rather than stifles, the development of co-operatives. I genuinely believe we are making political headway on that issue and I’m proud NFUS has led the debate.
“With the future of farming subsidies never far from the political spotlight, it is vital that we develop recognition of the importance of farming activity to Scotland’s economy, food industry and countryside. We will continue to take that message to both politicians and consumers. Support systems will change - there is no doubt about that. The critical issue is ensuring we provide a support framework which maintains the public benefits we deliver.
“Finally, government must get to grips with regulation. We take our responsibilities as food producers and stewards of land seriously and we know there will always be a level of controls. However, government and its agencies seem to have adopted a ‘regulate at all costs’ attitude which can be over-zealous to the point of absurdity. Ridiculous rules which deliver no public benefit, yet cost farmers thousands of pounds a year, must be stamped out. NFUS has proposed a new model for dealing with EU legislation in this country which puts common sense back into the process," Kinnaird said.
“By tackling these major issues, we can provide a solid framework for Scottish farming to prosper again after a decade of difficulties.”
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