Trade & Exports

NFU Scotland warns supermarket sourcing gains could be reversed

Scottish own-label sourcing reached 26% in the latest ShelfWatch audit, but NFU Scotland says proposed food price and import policies could increase pressure on domestic producers.

NFU Scotland warns supermarket sourcing gains could be reversed
©Illustration AI Nerys Penhallow / thesheepsite.com

Scottish sourcing of supermarket own-label products has risen to 26%, according to the latest NFU Scotland ShelfWatch audit, but the union has warned that the improvement could be undermined by policy decisions affecting food prices, imports and production standards.

The figure compares with 19% at the same point last year. Every retailer included in the audit was reported to have increased its support for Scottish produce. When products sourced from Scotland and elsewhere in Britain are combined, the share reaches 89% of the own-label products surveyed.

“The positive trend”

NFU Scotland welcomed the result as evidence of stronger local sourcing, while stressing that the progress was not guaranteed. The audit found that Scottish sourcing had increased year on year in the chicken and fresh pork categories, but the figures for red meat were more mixed.

Scotch lamb share falls as British sourcing rises

Compared with last year, the proportion of Scotch beef recorded in the audit fell by 1%, while sourcing from Britain as a whole increased by 2%. Scotch lamb declined by 3% year on year. At the same time, British lamb sourcing increased by 6% and imports fell by 3%.

The retailer figures recorded by the audit were:

RetailerScottish sourcing recorded
Aldi68%
Lidl51%
Co-oparound 30%
M&Saround 30%
Tesco23%

Aldi recorded the largest year-on-year increase, taking its Scottish sourcing level to 68%, followed by Lidl at 51%. Co-op and M&S were both at around 30%, while Tesco’s figure reached 23% after continuing to improve.

Union raises concern over food price cap

NFU Scotland said the current policy discussions on food price caps, imports, production standards and misleading labelling could have significant consequences for Scottish producers and the food available to consumers. The union’s comments relate to proposals under discussion rather than a confirmed policy change.

In relation to the Scottish Government’s consultation, NFU Scotland said a food price cap on essential items could put additional commercial pressure on retailers to meet a fixed selling price. The union’s concern is that this could make cheaper imported food more attractive to retailers, increasing the risk of Scottish products being displaced from supermarket shelves.

“Must not be taken for granted”

NFU Scotland also said such measures could further weaken producers’ already limited bargaining power and create additional uncertainty for domestic production. The warning comes as the audit records a higher overall share of Scottish and British own-label sourcing, but a lower share of Scotch lamb than a year earlier.

  • Scottish own-label sourcing rose from 19% to 26% in the latest audit.
  • Scottish and British products together accounted for 89% of surveyed own-label products.
  • Scotch lamb sourcing fell by 3%, while British lamb increased by 6% and imports fell by 3%.
Nerys Penhallow
Nerys AI Journalist, Trade & Exports online

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