Scottish arable farmers have been warned that without urgent reform, long-standing imbalances in the supply chain of combinable crops could force farmers out of production.
The warning comes after the government launched a consultation earlier this month to examine contracting practices and fairness across the wheat, barley, oat and rapeseed sectors.
The review is seeking views from farmers, traders and processors on how contracts will work, amid growing concerns that profits are not reaching Farmgate while risks are routinely pushed into supply chains.
Robert Neil, NFU Scotland vice-chairman, said the consultation came at a pivotal time for the sector and welcomed the move, but added: “The message from our members is clear: words must now lead to meaningful change. For too long, producers have been taking risks in an increasingly dysfunctional market.”
The talks come after one of the most difficult harvests in recent years. After a dry spring and summer, growers faced intense pressure, particularly in barley malting, and saw many crops rejected after inspection or sold at steep discounts if strict specifications were not met. In some cases, producers say their consignments are rejected on unclear criteria, leaving them to absorb losses later in the season.
Mr Neil said the current system failed to reward quality. “Malted barley is a luxury product, but that luxury no longer reaches the farm,” he says. “Producers will be held accountable for decisions made beyond their control, such as vague contract language, inconsistent testing standards, or an unwillingness to share risk.”
NFU Scotland has also highlighted further pressure on the supply chain, with some malt manufacturers experiencing unexpected contract terminations. The union says this uncertainty is being fed back to primary producers, stressing the need for greater coordination and shared responsibility between producers, processors and end consumers.
The group has long advocated for clearer and fairer crop contracts, including improved sampling procedures, agreed standards, dispute resolution and pricing mechanisms.
These priorities are reflected in the Government’s review, which NFU Scotland says provides producers with a valuable opportunity to influence meaningful change at a time of global market volatility and rising input costs.
There are already signs that this imbalance is affecting planting decisions. NFU Scotland has warned that some growers are moving away from spring barley, particularly malt varieties, in favor of rapeseed and oats. The changes are causing concern for the Scotch whiskey industry, which relies heavily on a steady supply of high-quality domestic malted barley.
Jack Stephenson, the association’s mixed crops chair, said the risks extended far beyond individual farms. “Barley and other combinable crops are the backbone of Scotland’s arable agriculture,” he said. “But without change, many producers will simply leave. That will have serious implications for local economies and iconic industries like Scotch whisky.”
Recent initiatives by NFU Scotland, UK Trade and the British Maltsters Association have reinforced concerns that existing practices are unsustainable, particularly as margins tighten and producers face increasing cost pressures.
The union is calling for clear and enforceable contracts, fair mechanisms for resolving disputes, proportionate inspection and rejection processes, and increased cooperation across the supply chain. It is also calling for long-term commitment from malt makers and distillers to support Scottish producers.
Fair trading obligations form a central part of NFU Scotland’s wider drive for supply chain reform, alongside continued engagement with government to avoid unintended consequences in other areas.
Mr Neil urged the industry to act. “We’re asking the entire supply chain, from processors to distillers, to step up,” he said. “Scottish agriculture is ready to innovate, adapt and lead. But what we need are people who will work with us, not make our lives harder.”
