Agribusiness News September 2022

Welcome to the September edition of Agribusiness News.  If you prefer to download this document as a pdf then click here

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News in brief

Unprecedented times continue

While Scottish produce has always been highly valued by consumers, with inflation rising at unprecedented levels month on month, some supermarkets are having to security tag ‘everyday’ products like butter.  With some tubs of branded butter now retailing at the same price as Cornish clotted cream, it is not surprising that the same brand of well-known butter is being traded on eBay for a further 50% premium – presumably to cover the cost of the ‘free’ postage!?

As product prices continue to climb consumers are looking to see where they can cut costs whether this is looking to move to cheaper brands; cheaper cuts of meat, or to stop buying certain products.  As highlighted in this edition of Agri Business News, the impact of this is already being seen in the livestock sector resulting in a slowing of demand for products or the easing of wholesale prices in the dairy sector.

While, after a rocky start, the agreement with Russia to reopen Ukrainian ports has eased the crisis in the grain sector; the body blows to the Agricultural sector have continued with a succession of extreme weather events across the main growing season affecting both Europe and America.  This, coupled with the escalating energy crisis and rising interest rates means that costs of production will continue to rise.  While the trade deal allowing 12,000 tonnes of New Zealand beef into the UK during the first year of the free trade agreement might relieve some of the inflationary pressure from a consumer perspective, UK farmers will be significantly more exposed than their European counterparts.

With no let-up of these ‘unprecedented’ times currently on the horizon, the underlying theme of this month’s articles is the importance of planning ahead for the coming winter to ensure that production targets continue to be met as efficiently and profitably as possible.

Next month:

• Global update
• Woodland Market Upland

Key economic data