Agribusiness News March 2025

Welcome to the March 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

The new year has brought not just strong storm winds, but strong winds of change in the landscapes of global commodity markets.

One of President Trump’s early policies has been to place tariffs on Chinese imports to the US, which has been reciprocated by China. With China a major importer of soya, and the US a major global producer, American farmers are projected to reduce soybean planting by 3.6% this year; at the same time, however, Brazil are increasing production by 10%, another major global soy producer. Since 2022, China has begun to see population decline, and experts observe a risk of declining agricultural capacity, furthering China’s already high dependence on imports (it accounts for 60% of global imports currently). In recent news, increased tariffs on fertilisers, as well as possible carbon taxes on high emissions imports like fertiliser, indicate that prices could rise in coming years, although exact impacts are still uncertain. For more updates on China in global markets, see Agribusiness New’s December 2024 Sector Focus article.

What does this mean for Scottish farming? China’s demand for agricultural commodities, and US trade decisions, shows the impact both can have on global markets, and by extension, how domestic markets will have to respond to this volatility. The breakout of war in Ukraine in 2022, following supply chain disruption with both EU exit and the Covid-19 pandemic, emphasises the vulnerabilities of British farming to global market volatility, but also capacity for adaptability and resilience.

February also saw an announcement providing indications of components of a £14m+ Future Farming Investment Scheme, including a new phase of capital grant schemes, and AECS, among other programmes; more details are expected later this year.

An audio version of Agri Business News is available on the FAS Website under FAS Sounds, and through podcast providers.

Agribusiness News | Helping farmers in Scotland | Farm Advisory Service

Next Month:

• Sustainable proteins
• Pollinators
• Seasonal workers

This month’s editor – Anna Sellars