National Farmers’ Union (NFU) Scotland has welcomed the “positive trend” in local sourcing as seen in the latest ShelfWatch findings, but warned that policy decisions could undermine this progress.
The latest NFU Scotland ShelfWatch audit found that 26% of own-label products were Scottish, with every retailer increasing their support for Scottish produce, up from 19% at the same point last year. When Scottish and British products are combined, the figure rises to 89%.
According to the data, Scottish sourcing increased on the year in the chicken and fresh pork categories. Across all surveyed products, the research found that almost nine in ten own-label products surveyed was now sourced from Scotland or elsewhere in Britain.
Every retailer was said to be making improvements in Scottish sourcing. Aldi recorded the biggest year-on-year increase, at just over a quarter, taking it to 68% Scottish sourcing, followed by Lidl at 51%. Co-op and M&S both saw Scottish sourcing at around 30%, while Tesco has continued to improve, reaching 23%.
Compared with last year, Scotch beef has declined by 1%, while British sourcing has increased by 2%. Year-on-year, Scotch lamb fell by 3%, with British lamb increasing by 6% and imports decreasing by 3%.
Food price cap “could create commercial pressure”
However, NFU Scotland warned that progress “must not be taken for granted”, stating that current policies under discussion on food price caps, imports, production standards and misleading labelling could have significant implications for Scottish producers and the food available to consumers.
As noted in the Scottish Government’s own consultation, NFU Scotland pointed out, there is a real risk that proposals to introduce a food price cap on essential items could create additional commercial pressure on retailers to meet a fixed selling price. This could make cheaper imported food more attractive, said the Union, increasing the risk of Scottish produce being displaced from supermarket shelves. It suggested that such proposals could also further erode producers’ already limited bargaining power, creating “additional uncertainty and pressure for domestic production”.
At the same time, the impact of imports and production standards must be considered, said NFU Scotland. If Scottish producers are expected to meet higher production standards, while competing with food produced to different standards at a lower cost, this “risks creating an uneven playing field”. It said that clear country-of-origin labelling is also important so consumers can see where their food comes from and make informed choices.
“Proposed food price caps could create additional commercial pressure on retailers, making cheaper imported food more attractive and potentially displacing Scottish produce from our own supermarket shelves.”
Andrew Connon, NFU Scotland
President Andrew Connon commented: “The latest ShelfWatch figures show that domestic sourcing is holding up, with some really positive examples of retailers increasing their support for Scottish farmers and crofters.
“This matters because a resilient food supply starts with a resilient primary production sector. Farmers and crofters need a viable market for the food they produce, and retailers have a hugely important role to play in maintaining and strengthening domestic supply chains.
“But this progress cannot be taken for granted. Proposed food price caps could create additional commercial pressure on retailers, making cheaper imported food more attractive and potentially displacing Scottish produce from our own supermarket shelves.
“Any pressure created at the retail end of the supply chain risks being passed back through processors and suppliers to the primary producer, putting further pressure on the businesses already carrying the cost of producing our food. Efforts to improve food affordability must not come at the expense of the farmers and crofters producing that food.”
While the findings also highlighted retailer sourcing and labelling commitments, NFU Scotland said it “cannot ignore the significant lack of information in the foodservice and out-of-home sector”, where it said there was far less transparency over the origin of food being served to consumers.
