Could farms cash crisis really see cattle and sheep disappear from Scotland's fields?
Official figures highlight the decline of the country's once-vibrant farming sector - showing the average livestock farm last year made just £2,600.
Shockingly, two-thirds of livestock farms actually lost money.
Now farming leaders have issued a dire warning that falling profits are threatening entire rural communities.
They also called for urgent action, from individual shoppers as well as from supermarkets, to ensure farmers can afford to keep producing the high-quality beef and lamb for which Scotland is internationally renowned.
The head of farmers' union NFU Scotland explained the sector is caught in a 'vicious cycle' - where financial pressures mean fewer and fewer famers are able to continue in business.
And as numbers of cattle and sheep decline, supplies of Scotch meat are reduced, meaning shops and supermarkets become increasingly reliant on imported products - making it even harder for Scottish farmers to turn a profit.
NFUS President Andrew Connon said: 'Figures for falling farm income are a serious concern and highlight the deepening financial pressures facing Scotland's food producers.
'Livestock farmers are caught in a vicious circle and the situation is unsustainable. Agriculture is the backbone of the rural economy. It doesn't just support the farmers themselves, it also supports a whole network of other businesses, such as feed manufacturers, vets, shed-makers, engineers, mechanics, not to mention the abattoirs, hauliers, auction marts and all the other parts of the food industry.
'Scotland needs a vibrant farming sector, where farmers can actually make a living, otherwise farms will contract, merge or cease trading altogether. You can already see it in the fields and on the hills: there are fewer animals - and fewer people.'
Newly published figures from the Scottish Government lay bare the stark economic realities of livestock farming.
A report into Scottish farm business income shows profits on an average lowland cattle and sheep farm fell sharply in 2023/24 to just £2,600. By comparison the average in 2012/13 was £35,000.
Even with government subsidies, the proportion of cattle and sheep farms making a profit dropped to a low of just 33 per cent.
Meanwhile only 45 per cent reported being able to afford to pay staff the minimum agricultural wage, which in 2023 was £10.19 an hour.
The new figures follow publication at the end of last year of an official agricultural census which showed number of cows and sheep in Scotland had fallen to a record low.
In the heyday of Scottish cattle farming in 1974, the country boasted a herd of 2.7million cattle.
After years of decline, the number fell last year to a low of just 1.7m cows. The total number of sheep dropped to a new low of 6.5m - down from 6.7m in 2012.
The census also showed a sharp decline is the overall number of farmers - with 'Working Occupiers' on Scotland's farms falling to a record low, from 40,957 in 2012 to just 34,907.
An investigation by NFUS into supermarket sourcing revealed last month that just 17 per cent of own-label products in major retailers are sourced from Scotland, despite strong demand from consumers.
Meanwhile, imports from overseas rose by 6 per cent over the past year.
Last night the NFUS called on shops - and shoppers - to safeguard the future of farming.
Mr Connon said: 'Our members are proud to produce food to some of the highest standards in the world.
People need to show that those standards matter - by choosing Scottish products in their shopping baskets.'
He also called for public bodies to demand Scottish produce, saying: 'From public procurement in schools and hospitals to hospitality and tourism, we need a whole-chain commitment to sourcing more from Scotland.'
The union has now written to the country's eight major supermarket chains, calling for them to introduce a 'Scottish First' sourcing policy, to increase the promotion of Scottish food, and also to ensure that producers receive a fair price.
Mr Connon said: 'The wider supply chain must play its part by delivering a fairer return to Scotland's primary producers, many of whom face crippling cost pressures and reduced margins.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business News Wales
an hour ago
- Business News Wales
Council to Showcase Electric 4x4 at Denbigh and Flint Show
A UK first electric 4×4 is getting a taste of the Denbighshire highlands at the Denbigh and Flint Show. Morag the Munro will take centre stage at Denbighshire Fleet Services stand at the 2025 show on August 21. Sporting a front bumper pair of horns in homage to its roots from Scottish lands, visitors young and old will be able to meet and greet with the new addition that will soon become a familiar site moving across the terrain of the Clwydian Range. Morag's arrival, the first of its kind anywhere in the UK, has been made possible by funding from the Welsh Government's Energy Service and the need to replace a fossil fuel-powered pick-up truck that has reached the end of its fleet life. This addition is part of the Council's continuing drive to reduce its Fleet carbon footprint. The Munro Series-M M280, will be used by the Clwydian Range and Dee Valley National Landscapes rangers to help with daily duties on the hills and will be based at Loggerheads County Park. It has a 'real-world' electric driving range of 170 miles, a 3.5 tonne towing capacity and is the first series production vehicle from Scotland in more than 40 years. Named Morag for its similar nature to its Highland cattle counterparts, the Munro was chosen for its ability to tackle the terrain of the Clwydians and other hilly sites, having been thoroughly tested on all types of off-road situations and being able to handle gradients above 40 degrees. Introducing the Munro is part of Denbighshire County Council's ongoing effort to reduce fleet carbon emissions, improve air quality, and lower long-term maintenance and service costs by replacing end-of-life vehicles with proven electric vehicle equivalents. Councillor Barry Mellor, lead member for environment and transport, said: 'Morag is going to be a great addition for supporting the rangers with work across the Clwydian terrain and will be easy to spot by visitors to the area as well. It's also fantastic to have what is a UK first, home nations developed EV vehicle now helping maintain Denbighshire landscapes. 'This new addition will provide greener and cleaner mileage at a lower fuel cost and with the general maintenance costs less as well, will provide long term savings. 'It's a fitting vehicle to operate within this area of outstanding natural beauty and I would encourage all to come and see Morag and chat to our fleet staff to learn more at the show.'
The Herald Scotland
3 hours ago
- The Herald Scotland
Labour MSP defies Scottish Secretary in call for wealth tax
A wealth tax is a form of taxation which is designed to collect money from an individual's total assets as opposed to specific levies on income or property. Proposed wealth taxes have included a levy on cumulative wealth - including everything from property, to investments, to art. The idea of the policy is that it could make the tax system fairer by directly targeting accumulated assets. The policy has recently emerged as a key dividing line in the parliamentary Labour Party in both Westminster and Holyrood. READ MORE: Last week, Scottish Secretary Ian Murray dismissed the idea of the UK Government implementing a wealth tax, saying that there was 'no silver bullet' to the country's economic woes. Speaking to the Comedian Matt Forde at the Edinburgh Fringe, Mr Murray said '[A wealth tax] doesn't work. The Laffer curve [an economic theory which explains the correlation between taxation and government revenue] is there for everyone to see. 'So, yes, you can bring in a wealth tax, because it might make you feel principally better. You might bring in £200 million but the cost of doing that would be huge because there is just flight, whether we like that or not.' Scottish Secretary Ian Murray last week publicly denounced the idea of a wealth tax (Image: PA)Contradicting Mr Murray, Ms Villalba said of the Laffer curve: 'this theory, though influential, is unfounded.' She went on to say that she believes that 'all financial wealth originates from human labour'. 'It would therefore take a mass exodus or nationwide risk to life for wealth creation in a country to cease.' 'We need only look at the hit private profit would have taken during the pandemic had the state not stepped in to shore it up to see the primacy of human labour evidenced. 'A significant proportion of wealth is in immobile assets like land, property and British-based businesses…This wealth cannot up sticks and leave with an individual. The resources remain in the country and are subject to taxation. 'We know we won't lose wealth creation as long as we have a fit and able population to do the work. 'In fact, the greatest risk to wealth is workforce shortages caused by a public health service on its knees, an undervalued public education system and a cost-of-living crisis deterring new parents. In short, the greatest risk to wealth is continuing to let it go untaxed.' The Scottish Greens have also recently made fresh calls for a wealth tax in response to 'soaring' CEO pay. Discussing new figures which showed that some British Executives' pay had reached over 100 times that of the average worker, MSP Maggie Chapman said: 'A wealth tax is now a necessity, to make sure that those who have enriched themselves the most pay their fair share.' Rachel Reeves refused to be drawn on a wealth tax when quizzed by journalists earlier this month. She said the UK Government had to 'get the balance right on taxation' but stressed the 'number one priority' was growing the economy.
Scottish Sun
3 hours ago
- Scottish Sun
Major high street fashion retailer to close ANOTHER Scots store months after four branches shut
In February, we told how the clothing brand, which started in Glasgow in 1992, was closing four stores. OUT OF FASHION Major high street fashion retailer to close ANOTHER Scots store months after four branches shut Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) QUIZ is preparing to shut another one of its stores in Scotland, it has emerged. The latest move from the fashion retailer follows the closure of other stores. Sign up for Scottish Sun newsletter Sign up 2 Quiz is preparing to close another one of its Scottish stores Credit: Alamy 2 The women's clothing brand has faced financial difficulties in recent times Credit: Alamy In February, we told how the clothing brand, which started in Glasgow in 1992, was closing four stores. The shutters were pulled down on outlets in Dundee, Falkirk, Glasgow and Motherwell. But the women's fashion firm is preparing to close its Union Square store in Aberdeen, as reported by the P&J. Clearance sale signs have appeared in the store's windows in recent days. The notices inform shoppers that 'all stock must go' but it is not clear when the premises will shut. Quiz was bought in a pre-pack insolvency deal, which has seen new owners Orion save dozens of shops. Administrators closed 23 shops across the UK and Ireland which were deemed "loss-making or unsustainable". After Quiz fell into administration, CEO, Sheraz Ramzan, said: 'The Board took the difficult decision to appoint administrators to Zandra Retail Limited in light of the continuing challenging trading conditions impacting the Group's performance. "We are deeply sorry to those affected by the store closures, including our retail colleagues. "However, this decision will put the business in a more sustainable footing for the future and protect several hundred jobs as a result.' Lidl to sell handy garden tool in Middle Aisle and it's £65 cheaper than Bosch version The crisis-hit firm was restructured in 2020, but a major blow came last December. The company halved in value since the start of that month, shortly before delisting from the stock market to save costs its value had shrank to just £3.6 million. The retailer also experienced disappointing sales over the key festive period.
