NFUS Vice President Andrew Connon delivered his keynote speech to Maltsters Association of Great Britain.
Maintaining strong relationships in our supply chain that are built on trust, engagement and feedback are essential, particularly as we face major challenges and opportunities in Scotland’s agricultural and malting barley industries writes NFU Scotland Vice President Andrew Connon.
Delivering his speech at the Maltsters Association of Great Britain’s annual luncheon, held in the prestigious Armourers and Brasiers’ Hall, London, he said: “It is vital that Scottish agriculture remains profitable and competitive. Malting barley is a premium product and should command a premium price.
“Yet, as rising costs put pressure on cropping decisions, financial incentives must reflect the quality, sustainability, and local value of Scottish barley production.
“Consistent investment in machinery, technology, and environmental initiatives requires reliable returns. This winter’s contract negotiations should recognise this value and seek to reward Scottish growers appropriately, especially given rising costs and global market challenges.
Mr Connon looked to building on existing relationships, to the benefit of all parts of the chain, as key.
He said: “I am here not just as a farmer from North East Scotland’s prime malting barley region, but my with experience in various sectors of agricultural business.
“For me, maintaining these relationships is key and I believe the entire food and drink supply chain from farmers to maltsters, distillers and retailers must work together to navigate current challenges and seize future opportunities.
“NFU Scotland’s policy priorities are comprehensive, ranging from economic support for rural communities to regulations that ensure sustainable land use, climate action, fairer supply chains and positive public perceptions. For agriculture and the whisky industry alike, these priorities address our commitment to climate-friendly practices, responsible land management and improved profitability across the entire supply chain.
“The recent engagement across the malting barley supply chain is encouraging. Over the past year, NFUS members and representatives have had productive discussions with industry leaders. From the Scotch Whisky Association’s (SWA) recent Edinburgh event to the recent NFU Scotland Autumn Conference discussions and tours of facilities like Boort Malt, we are seeing valuable progress in dialogue.
“Scotch whisky production adds £7.1 billion to the UK economy annually, while malting barley cultivation contributes significantly to tax revenue and rural development. Given this, continued investment by maltsters and distillers is promising. Scottish farmers take pride in their contribution to this supply chain and their role in producing a high-quality product.
“However, the agricultural sector is facing significant political and economic challenges. Last week’s budget announcement included decisions that directly impact family farms. Despite appeals, there was no increase in multi-annual funding, and agricultural property relief was capped, introducing substantial tax burdens.
“Farmers are ‘asset-rich but cash-poor’, and sudden financial interventions risk weakening family farming businesses, potentially harming local economies and causing mental health issues. Increased employer National Insurance contributions, new minimum wage requirements, and rising operational costs add further strain.
“The Scotch Whisky Association has also voiced concerns over additional duties, describing the budget measures as a ‘hammer blow’ to Scotland’s iconic whisky industry. The whisky sector, along with NFUS, is calling for government support to help all stakeholders in the food and drink supply chain maintain competitiveness.
“In light of these challenges, NFUS and UK farming unions are rallying at Westminster on November 19 to advocate for policies that preserve the livelihoods of Scotland’s farmers and producers.”
Turning to sustainable land use and environmental responsibility, Mr Connon said: “The pressures on agricultural land are substantial, driven by competition for land from renewable energy projects, tree planting and infrastructure expansions including substations and battery storage developments, productive farming ground is being lost, some of which has been growing malting barley. We need to see a balanced approach to land use.
“Agriculture is also experiencing increased risks associated with climate variability, crop yield, labour shortages and regulatory pressures. Shared responsibility across the supply chain is essential for managing these risks. The risk cannot all sit with the grower, otherwise the risk versus reward equation doesn’t stack. As we work toward decarbonising the sector, we need solutions that are both practical and financially sustainable.
“Technology and innovation present opportunities to improve efficiency and productivity in agriculture. We need access to the latest science including gene editing.
“We must also maintain access to critical tools like glyphosate, which remains vital for efficient crop production, especially as pressure mounts to adopt sustainable practices like reduced tillage.
“The agricultural sector is also undergoing a push toward biodiversity and nature conservation, with government policies emphasising sustainable farming. We are seeing significant progress in practices like crop rotation, winter cover crops, reduced tillage, companion cropping, grass margins and the integration of small woodland areas on farms. But what of the unintended consequences? An example being Grass Ergot appearing in grain samples. Do malting intakes need to invest in colour sorters?
“These efforts come at a cost and farmers need to be fairly compensated to sustain these practices. We must recognise both the emissions agriculture produces and the environmental benefits it provides, from soil carbon sequestration to biodiversity enhancements.”
Mr Connon added: “NFUS is committed to advocating for fair pricing, stable government support, and a united approach to addressing climate and environmental goals. With the right backing, we can expand Scotland’s malting barley sector to meet growing demand, support rural economies and promote Scotland’s role in the food and drink industry.
“The entire food and drink supply chain from farmers to maltsters, distillers and retailers must work together to navigate current challenges and seize future opportunities. We face pressing financial and environmental demands but a collaborative approach can help us overcome these obstacles and strengthen Scotland’s agriculture and whisky sectors.
“Agriculture is a vibrant, resilient industry, and with the support of government and industry partners, we can ensure it remains profitable, sustainable and a key contributor to Scotland’s economy.”
Notes to editors:
- The Maltsters Association of Great Britain (MAGB) is the trade organisation of the UK malting industry, representing over 98% of UK malt production.
- Photo of Vice President Andrew Connon speaking at MAGB AGM is attached.