Agribusiness News January 2023

Welcome to the January edition of Agribusiness News.  If you prefer to download this document click the download button.

N e w s  I n  B r i e f

2022 – A year like no other!

Following on from Brexit and Covid, we all looked forward to 2022 being a ‘normal’ year but with three new prime ministers, four chancellors, a new monarch, a war in Europe, highest recorded temperatures, avian flu decimating farmed and wild bird populations, a deepening cost of living crisis and strikes not seen since the 1970s; 2022 has proved to be anything but.

As our livestock, arable and dairy articles highlight despite milk prices climbing to the highest on record and sale prices continuing to stay strong for arable and livestock sectors, rising input prices particularly feed, fertiliser and fuel have steadily been eroding margins.  This, coupled with interest rates rising by 3.25% since last December, many, especially intensive livestock producers with soaring feed and energy bills are questioning if they still have a future in the industry which could have far reaching implications for food security and rural economies.

As the industry journeys to meet net zero targets, our carbon roundup highlights the progress so far with strategies to reduce carbon footprints and the emerging role of carbon financial markets in funding carbon sequestration.   While Defra’s support packages are being closely tied to environmental management, Scottish Government’s National Test Programme (NTP): Track 1 – Preparing for Sustainable Farming (PSF) literally puts the focus on the ground up with the introduction of support payments for soil analysis and nutritional management advice, coupled with grants for up to date baseline carbon audits and mitigation plans.

While global trends show that Scotland is not alone in its economic struggles as the fallout from the ongoing war in Ukraine continues to reverberate around the world; going forward, how businesses adapt to changing circumstances will be the key to individual success.

Merry Christmas & Happy New Year

from all the Agribusiness News Team     

This month’s editor – Christine Beaton