The North East Scotland Agriculture Advisory Group met on Wednesday 09 September 2026 to discuss the sector outlook, organic farming developments, and agri-tourism. Key discussions included the challenges facing the pig industry, the growth of organic farming in Scotland, and opportunities for agri-tourism businesses.

Sector Outlook, Key Issues and Challenges in the Northeast

Ian Macdonald from Quality Meat Scotland presented an overview of the beef, lamb, and pork sectors. He highlighted that the beef sector was showing signs of stabilisation after a period of price increases and declining volumes, with a rise in non-EU beef imports noted. The lamb sector had experienced a strong few years, with prices remaining high despite seasonal fluctuations. However, the pig sector remained in a very difficult place, with negative producer margins and rising feed costs. Macdonald also touched upon the importance of the agricultural sector to the Northeast's economy, noting the significant contribution of livestock numbers and processing to the region. He also discussed the impact of global trade volatility, including the EU's ban on Brazilian beef and its potential diversion to the UK market. Macdonald also addressed the issue of provenance in dining out, noting that it was often less important than price and difficult for consumers to ascertain. He also mentioned the impact of the blue tongue virus on calf sales and the ongoing challenges of declining livestock numbers and processor closures.

Developments and Increased Organics in Scotland

David Mackay of the Soil Association Scotland presented on the growth of organic farming in Scotland. He reported that Scotland was on track to meet its target of doubling the area under organic management by 2021, with the current land share at 3.3%. Mackay noted that while this was a positive trend, it was still significantly lower than the EU average. He explained that organic production delivered against government policy objectives such as improving biodiversity and reducing greenhouse gas emissions, and that consumer demand for organic products was consistently growing. Mackay highlighted the supportive policy environment in Scotland, including payments for organic conversion and maintenance through the Agri-Environment Climate Scheme (AECS), and the removal of area caps for land entering conversion. He also noted that organic produce automatically qualified for greening payments. The presentation detailed the regional distribution of organic land, with a significant increase in permanent pasture and rough grazing, particularly in the Highlands and Islands. Mackay also discussed the growth in organic cereal and vegetable crops, and the static numbers in organic cattle production, noting a steady price premium. He highlighted challenges around processing capacity for organic producers, particularly in the north of Scotland. The Soil Association's Organic Action Plan, launched earlier this year, aims to address supply chain and market development challenges, including public procurement. Mackay also discussed the strong consumer demand for organic products, particularly eggs, milk, and oats, and identified opportunities for organic beef and lamb marketing. He noted that while affluent consumers were significant buyers of organic produce, there was also growth among younger demographics and those with lower incomes in Scotland.

On-Farm Agri-Tourism Business Growth

Callum Johnston from SAC Consulting presented on the growth of agri-tourism in Scotland. He defined agri-tourism as tourism or leisure activities on a working farm, croft, or estate that produces food or fibre, encompassing accommodation, activities, and farm shops. Johnston highlighted the ambition and dynamism of the sector, noting that farmers and crofters involved in agri-tourism were generally upbeat about the future. He credited Caroline Miller of GoRural Scotland and VisitScotland for their work in driving the sector forward and mentioned the Scottish Agritourism 2030 strategy. The sector was valued at nearly £300 million to the Scottish economy in 2025, welcoming 2.5 million visitors and supporting 8,000 jobs. Self-catering accommodation was the most common activity, followed by farm tours and experiences, and on-farm cafes. Johnston emphasised that agri-tourism helps build financially sustainable businesses, facilitates succession planning, and allows farmers to add value to their produce by becoming price setters. He also highlighted the role of agri-tourism in connecting consumers with farmers, promoting provenance, and building social connectivity. Current trends include growth in farm retail, accommodation (with a shift towards luxury eco-cabins), farm tours and experiences, on-farm dining, and a growing interest in health and wellness tourism. Johnston also discussed the importance of succession planning, noting that agri-tourism can provide concrete roles for younger family members. He stressed the multiplier effect of agri-tourism on the wider rural economy, supporting local businesses and employment. Examples of successful agri-tourism businesses, Marshall's Farm Shop and Kitchen and Portnellan Farm, were presented. Johnston outlined how SAC Consulting supports clients through business plans, feasibility studies, planning applications, and grant applications for schemes like the Agri-Tourism Investment Scheme. He also mentioned funding for new product development and the availability of specialist advice through Scotland's Farm Advisory Service.

Industry Report and Around Table Round Up

Councillor Mark Findlater raised concerns about the severe crisis affecting the pig farming sector in Northeast Scotland, with many producers facing significant financial difficulties and considering leaving the industry. He proposed writing to the Cabinet Secretary to highlight the situation and explore financial support, suggesting the underspend from the Less Favoured Area Support Scheme (LFASS) as a potential funding source. While members supported the principle of highlighting the challenges, concerns were raised about reallocating LFASS funding, which is intended for less favoured areas. It was agreed that further evidence and discussion were needed, and engagement with pig industry representatives was recommended. Mr Greer, North East Regional Chair of NFU Scotland, confirmed the severity of the crisis and offered to facilitate contact with the NFUS Pigs Committee. The importance of maintaining critical mass in the Scottish pig industry and the implications of processing capacity loss were discussed. The group agreed that the Chair and Mr Whyte would discuss with industry representatives and prepare a draft letter for circulation.

The meeting also included discussions on environmental protection and erosion prevention, with a presentation from Shaun McLean of HBB Geo, and on Aberdeenshire's Gluten-Free Oat Company, with a presentation by Andrew Booth of Oat Co Scotland.

The meeting concluded with a decision to explore the feasibility of a pilot project for local procurement of Scottish produce, particularly in response to discussions around the pig industry crisis and the potential for using wonky veg. The group agreed to raise this to a policy-making level for further consideration.