The following is written by Lisa Hislop of NFU Scotland.
As Easter approaches, we are seeing an extension of the festive deep discounting by retailers creeping into another public holiday. This weekend's promotions include carrots, potatoes and swedes being sold for as little as 4p. At the same time, the pressures facing farmers and growers are mounting. Margins are always tight however, the significant increase in energy, fertiliser and fuel costs, driven by the ongoing Iran conflict, is placing further strain across the board. For example, it's estimated an additional £5 per tonne increase in cost for potato production alone.
While lower prices might be appealing, these excessive discounts are not sustainable for any part of the supply chain and we are in danger that this merely encourages a 'race to the bottom'. Deep discounting widens the gap between the realities of food production and consumer expectations, diminishes the value we place on food and ultimately encourages waste. When vegetables are sold for pennies, it sends a misleading message that fresh, high quality produce is cheap and abundant, when in reality, Scottish growers are working harder than ever to maintain supply in difficult conditions. Moreover, such promotions create supply management issues across the wider supply chain as they drive sudden spikes in demand and volumes that are difficult to plan for and manage.
We urge retailers to consider the signals that excessive discounting sends to both producers and consumers. Promotions can be helpful when they are fair, transparent, and agreed collaboratively with producers. However, it is important to note that no single retailer can change practice alone - a collective commitment is required from all retailers to adopt a more responsible approach that does not undermine the value of food or the true cost of its production
More broadly, we continue to urge retailers to remain steadfast in their commitment to Scottish producers and not seek cheaper imports during this period of instability. Long-term, transparent and fair commitments are essential to ensuring a resilient supply chain that can withstand external shocks. This aligns with our wider work around the Fair Dealing Obligations to ensure both existing and proposed regulations are fit for purpose.
We will continue to use our ShelfWatch data to monitor and analyse retailer sourcing throughout the year. This evidence strengthens our conversations with retailers and supports constructive, evidence-based dialogue across the sector.
Source: NFU Scotland
