The Scottish Government has announced a feasibility study to help manufacturers deal with soaring butter prices
A Scottish study to help food manufacturers tackle the butter shortage must not ignore the crucial part played by primary producers in the supply chain, but encourage collaboration to mitigate volatility.
That was the call from NFU Scotland following the Scottish Government’s announcement of a feasibility study to help shortbread makers, confectioners and bakeries tackle high butter prices.
NFUS milk policy manager George Jamieson welcomed the study but warned wafer thin margins and bearing the biggest risk from volatility would continue to push dairy farmers out of the sector.
He added Scottish farmers could produce milk for products including butter to the high standards needed for ‘iconic’ produce but manufacturers needed to commit to seeking out Scottish dairy ingredients in return.
“That means not merely sourcing the cheapest, but to ensure that Scottish producers and processors find solutions to support each other in growing Scottish added value brands.”
Announcing the study at the RBS Food and Drink conference, Cabinet Secretary for Rural Economy and Connectivity Fergus Ewing, said the price of butter was a concern for many smaller manufacturers.
“We have listened the concerns of our manufacturers and this urgent feasibility study will explore opportunities to exploit buying and efficiency savings made available through collaboration, boosting productivity and competitiveness within domestic and global markets,” he said.
“We expect to see the outcome of the study within the next month or so and we look forward to supporting the industry if whatever way we can.”