Retail expert to share his recommendations for farmers and crofters at NFU Scotland conference on February 8.
Retail expert Ged Futter, director at The Retail Mind, is encouraging the agricultural sector to challenge supermarket and distributor demands for low-cost products.
Speaking ahead of addressing delegates on day one of NFU Scotland’s conference in Glasgow tomorrow (Thursday 8 February), Mr Futter said: “The future is exciting for Scottish farmers and growers, but it starts with one word, ‘no’.”
In his much-anticipated presentation, Mr Futter hopes to inspire farmers and crofters to work with consumers to build a stronger supply chain. Mr Futter states: “The 2024 Oxford Farming Conference (OFC) Report firmly states that the practice of farmers subsidising consumers’ appetite for cheap food cannot continue.
“After years of ‘permacrisis’ fuelled by Brexit, the Ukrainian conflict, the Covid-19 pandemic and inflation running up to 20 percent, farming’s confidence and bank balances are at an all-time, unsustainable, low.
“Recent events have acted as catalysts that have exposed pre-existing and fundamental weaknesses in the supply chain. The level of risk is at all-time high. Risk versus reward came up consistently in the report for farmers and growers, concluding that with the risk versus reward ratio so far out of out of kilter, more farmers are asking is it worth producing food?
“Widely, retailers get a bad press but, as I was told on a number of occasions, the most sustainable and efficient distribution model is ‘retail to consumer’ and that the UK has probably the highest standards of production in the world. The further you move away from the UK, the lower those standards can become and the bigger the food safety risk, as well as the food security risk.
“One industry expert explained how trust has been eroded between the farming sector and retailers. The analogy used was that ‘The current negotiation landscape is the equivalent of Premier League footballers playing against a pub team that complains when they lose 38-0 that the other team didn’t play fair!’
“The retailers have become more sophisticated at finding ways of getting better prices and most farmers, growers and packers have not kept up.
“There is an answer, and it starts by saying ‘no.’ What will you say ‘no’ to? Are you getting your business ready for the future? Is it a future based on current opportunities or future ones?
“Scotland has two things which mean it is well set for the future. Firstly, an abundance of water. Scotland has around 19,000 km of coastline, which makes up 8 percent of Europe’s coast. Covering about 2 percent of Scotland's land area, rivers and lochs contain 90 percent of the UK’s surface freshwater. Access to water will be crucial for future farming.
“Secondly, Scotland is already a world class exporter. Scottish salmon is the UK's top food export, with sales worth £578 million in 2022 with Scotch whisky exports up 37 percent to exceed £6bn in 2022. What will be next? Farmers and growers need to make sure they are part of it.
“The future is exciting for Scottish farmers and growers, but it starts with one word, ‘no’.”
Notes to Editors
- The Union’s National AGM, Conference and Council meeting will take place at the Radisson Blu Hotel, Glasgow, G2 8DL on Thursday 8 and Friday 9 February 2024, sponsored by Scotbeef and M&S Food.
- As the Union looks to secure a profitable and sustainable future for its members, the conference will focus on the role of the regulation, market and supply chains in delivering that. Full details on the conference programme are available here
- Media interested in attending the event can email: media@nfus.org.uk
- Ged Futter will address delegates attending the conference at approximately 4pm on Thursday February 8.
Ends
Contact Bob Carruth on 0131 472 4006