Supermarket research identifies £500m opportunity for farmers and crofters
New research into Scottish supermarkets has identified a £500m opportunity for farmers and crofters.
National Farmers Union Scotland has now challenged the United Kingdom's largest retailers to work with the industry to increase the amount of Scottish produce on shelves.
It comes as the union's ShelfWatch initiative showed a mixed picture in respect to sourcing levels.
The initiative was aimed at monitoring the availability of Scottish produce on sale at Aldi, Asda, Co-op, Lidl, M&S Food, Morrisons, Sainsbury's and Tesco.
NFU Scotland conducted research over four phases throughout 2024 and early 2025.
Results, released on Tuesday, revealed stark variations in Scottish sourcing, with just 17% of all own-label products from Scotland.
Aldi was the clear front runner, leading the rankings in every phase of research with an overall average of 40%.
In second place was Lidl with a 30% average and Co-op in 3rd with 22%. Meanwhile, M&S Food had the biggest, albeit modest, improvement across the year in its support for Scottish produce.
More generally, support for British produce was strong with an average of 63% of own-label products being sourced within the UK.
In response to this analysis, NFU Scotland has identified a potential £500m opportunity for Scottish farmers, crofters and growers if levels of Scottish sourcing was increased by just 12% in the coming years.
To achieve this, NFU Scotland has written to all eight retailers setting out this challenge to adopt a 'Scottish First' policy, prioritising Scottish produce across all commodities and reducing reliance on imports.
They also call for the development of a programme of promotional campaigns and activity to champion Scottish produce in stores and online, including the creation of a 'Scottish Shop' for online customers and supporting industry initiatives.
Added to this is the proposal of new commitments to ensure fairness in the supply chain, a commitment to reforming labelling practices to ensure clearer on-pack country-of-origin labelling and to reforming labelling practices to ensure clearer on-pack country-of-origin labelling.
NFU Scotland President Andrew Connon commented: 'ShelfWatch has delivered vital insight. Our clear message to retailers is that by working together, we have a golden opportunity to support Scotland's farmers and crofters as well as giving their customers more of what they want.
'We know that the value of grocery sales across Scotland is significant and we believe Scottish farmers and crofters could get a greater share of this value if retailers work with us and the wider industry to take forward the actions we set today.
'Overall, these results show a disappointing level of Scottish sourcing with around 17% of own-label products labelled as Scottish and no real improvement throughout the year.
'That said, the picture is very mixed across each of the retailers. I'd like to congratulate Aldi in particular, who consistently held the highest levels of Scottish sourcing throughout the year, and also to Lidl for their ongoing commitment.
'Through this work, we have identified the key areas for action and commitment retailers. NFU Scotland, along with other industry partners, stand ready to work in partnership to support this. If we get it right, the results could be transformational for our farmers, crofters and growers.
'Of course, none of this will happen in isolation and we need to see effective government policy that supports a vibrant farming industry and enables our members to have the confidence to invest for the future'.
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