For those of you growing malting barley, this has been a terrible harvest. Many crops across the country have had very high levels of screenings. Deductions have been common. Knocking prices back, from a starting point that was too low anyway. Rejections have been a disaster, with grain piling up on many farms. Dressing out grain is an option for many, but this is costly, and the smaller grains are of low value, if a market can be found for them.
We are hearing stories about variability in testing results from samples taken at intake and on farm. There are also big concerns about delayed pricing, contract end dates (especially when grain is still to be dressed) and unfair deductions. A lot of risk is being taken by farmers, and a fairer return, where farmers get more value from the supply chain, is desperately needed.
This current situation has resulted from distillers over-producing spirits in the last few years, and then suddenly reducing production volumes. Spirit companies around the world (not just whisky distillers in Scotland) thought that lockdown levels of boozing would continue, giving them bumper sales for years to come. Declining alcohol consumption has put the brakes on this, as people are leaving the house to to go to the gym rather than the pub.
On top of this change from distillers, there has been high levels of global grain production, dampening futures prices. But why should wheat futures values affect malting barley contract prices? This is a very different commodity with very different supply chains.
We at NFU Scotland – policy, Presidential team, and the Combinable Crops Committee – have been thinking about all these things, trying to understand the broader context. There’s been so much going on. And we have heard a lot from you, our members, about how unhappy you are.
We have had a real focus on engaging and persuading all the supply chain representative bodies to make things easier for farmers. This has been difficult, as the harsh market reality is that there is a very low demand for barley this year, and probably next year as well.
While dialogue and persuading is needed in the short-term, it’s not a long-term strategy. Especially as supply chain trade bodies represent their members, and won’t tell them to change practice. Competition law requirements in these meetings also steer us away from discussions about contracts. But we have been very vocal about the challenges, and the need for a fairer dealings with farmers.
This isn’t just a 2025 problem. For many years our members have told us there is a lack of transparency and fairness within the supply chain. Growers bear most of the risk while receiving a small proportion of value. On top of that, our members think combinable crop supply chains undervalue farm assurance standards. With a more uncertain and volatile world, where growers are more vulnerable to economic pressures and extreme weather, fairer returns are essential for business investment to mitigate these pressures and strengthen business resilience. If farmers can get a fair price they will have the confidence to invest in their businesses. This is essential for the long-term.
We want to see the UK Government bring forward their supply chain fairness review for combinable crops. We want to see a policy that sets a framework for how merchants and others within the supply chain should be legally required to operate. This will underpin and strengthen Scottish grain production, and secure supply for a more sustainable future.
Things will pick up. The Indian trade deal and population growth in Asian markets will increase Scotch whisky sales in the medium-term. This will result in better prices. But we need farmers to have the confidence to keep growing malting barley, and we think supply chain fairness policy is needed to support this.