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Arable farming under pressure as cost-price squeeze threatens Scottish growers

Collaboration and fair pricing key to returns from premium markets.

Scotland’s arable farming sector faces ongoing financial challenges, with the combined pressures of low crop prices, rising costs, and competition from imported wheat continuing to strain growers’ profitability. 

Despite favourable autumn weather conditions leading to excellent establishment for winter barley, winter wheat, and oilseed rape (OSR) crops, the outlook for 2025 remains uncertain.

NFU Scotland has met with the Maltsters Association of Great Britain (MAGB) and the Scotch Whisky Association (SWA) in recent weeks, where it underlined the need for more robust pricing and contracts for premium crops like malting barley. Discussions with distillers and the SWA are ongoing, with calls for fairer pricing structures that reward Scottish farmers for high-quality, sustainable production.

NFU Scotland’s Combinable Crops Chair, Jack Stevenson said: “Unsatisfactory crop prices and the ever-increasing cost of inputs are squeezing Scotland’s arable sector harder than ever.

“Global wheat prices remain subdued, and the anticipated increase in demand for malting barley has yet to materialise. Instead, growers report prices for 2024 crop well below expectations compared to the 2023 harvest. That has left Scottish growers frustrated, and looking to 2025 for much-needed optimism.”

The economics of growing malting barley were a central focus at the recent MAGB event in London, addressed by Vice President Andrew Connon, who said that without a proper price premium, the risk-reward equation does not make sense for farmers. 

A delegation from NFU Scotland also met with the SWA in late November.

Mr Stevenson said: “The additional management costs of growing malting barley, lower yields compared to feed barley and stringent intake tolerances are significant hurdles. Malting barley is a premium crop, and it must command a premium price. 

“Moreover, sustainability considerations are adding pressure to the supply chain. More than a quarter of whisky industry emissions come from the growing crop. Farmers will embrace green production techniques, but they must be recognised and paid for their efforts. This was the key issue raised with SWA representatives at our recent roundtable discussion, and it was heartening to see their recognition of the vital role of growers and a willingness to collaborate more closely with us.”

In 2024, winter wheat, long seen as a reliable and profitable staple, has become a source of frustration for many Scottish growers due to global market dynamics and increased imports. Reports of large volumes of imported wheat arriving at Scottish ports have sparked anger among farmers.

Mr Stevenson said: “Although it is acknowledged that Scotland does not produce enough wheat to meet total demand, the lack of support for Scottish-grown produce is disheartening. Scottish growers are loyal and committed to producing a high-quality product, yet they face delays in uplifts and depressed prices because of full intakes. At the same time, our members have voiced concerns about the quality and assurance credentials of imported wheat, which often fails to meet the same high standards as locally grown grain. 

“Scottish provenance, farm assurance standards, and high-quality grain should command a premium. Importers and end users in the whisky industry should prioritise Scottish-grown products, emphasising their critical role in the production of Scotland’s iconic whisky.”

As the sector looks to 2025, collaboration across the supply chain is crucial to restoring confidence and improving profitability. 

Mr Stevenson concluded: “The challenges are clear, but so are the opportunities. We call on all stakeholders - growers, merchants, importers, and end users - to come together and support Scotland’s highly productive arable sector for a stronger, more sustainable future for Scottish growers.”

Ends


Contact Bob Carruth on 0131 472 4006


Date Published:

News Article No.: 103/24


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