The Land Based Sector in NE Scotland FINAL REPORT April 2016
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The Land Based Sector in NE Scotland A Study for the North East Scotland Agriculture Advisory Group Supported by Aberdeenshire Council, Angus Council, Moray Council, Scottish Enterprise, Highlands and Islands Enterprise – Moray, Forestry Commission Scotland FINAL REPORT April 2016 Study Contact: Client Contact: Peter Cook Derek McDonald 2 Mennie Cooks Ltd Industry Support Executive [email protected] Aberdeenshire Council 07774 160246 [email protected] 01467 623222 01224 664606 1 1 CONTENTS 2 Introduction .................................................................................................................................... 6 3 Recommendations .......................................................................................................................... 9 3.1 Overview ................................................................................................................................. 9 3.2 What is needed? ..................................................................................................................... 9 3.3 Recommendations for the study partners ............................................................................ 11 4 Stage 1 - Understanding the Current Strategic Position of the Land Based Sectors in NE Scotland 14 4.1 The Structure and Performance of Farming ......................................................................... 14 4.1.1 Number of Holdings and Average Size .......................................................................... 14 4.1.2 Holding Size Distribution ............................................................................................... 16 4.1.3 Agricultural Land Area................................................................................................... 21 4.1.4 Land Tenure .................................................................................................................. 22 4.1.5 Arable Area ................................................................................................................... 23 4.1.6 Total Cash Crop Area ..................................................................................................... 25 4.1.7 Cereals ........................................................................................................................... 26 4.1.8 Oilseed Rape ................................................................................................................. 29 4.1.9 Potatoes ........................................................................................................................ 29 4.1.10 Intensive Crops .............................................................................................................. 31 4.1.11 Fodder Crops ................................................................................................................. 33 4.1.12 Improved Grass and Rough Grazing .............................................................................. 33 4.1.13 Total Cattle .................................................................................................................... 37 4.1.14 The Beef Breeding Herd ................................................................................................ 38 4.1.15 Finishing Cattle .............................................................................................................. 41 4.1.16 The Dairy Herd .............................................................................................................. 42 4.1.17 Sheep............................................................................................................................. 44 4.1.18 Pigs ................................................................................................................................ 48 4.1.19 Poultry ........................................................................................................................... 48 4.1.20 Other Livestock ............................................................................................................. 49 4.1.21 Labour and Occupiers ................................................................................................... 50 2 4.2 AGRICULTURAL OUTPUT ESTIMATES .................................................................................... 59 4.3 STRUCTURE AND PERFORMANCE OF THE FARM WOODLAND SECTOR IN NE SCOTLAND ... 63 4.3.1 Introduction .................................................................................................................. 63 4.3.2 A short historical perspective ....................................................................................... 64 4.3.3 Recent evidence on woodland planting and management .......................................... 66 4.3.4 Key drivers ..................................................................................................................... 72 4.3.5 Key constraints .............................................................................................................. 74 4.3.6 CONCLUSIONS ............................................................................................................... 75 4.3.7 References .................................................................................................................... 78 4.4 RENEWABLES IN NORTH EAST SCOTLAND ............................................................................ 80 4.4.1 The contribution of the North East to Scottish Renewables ........................................ 80 4.4.2 The relative importance of different type of renewables ............................................ 84 4.4.3 Developments awaiting construction ........................................................................... 87 4.4.4 Renewable Heating ....................................................................................................... 90 4.4.5 Income from renewables .............................................................................................. 92 4.5 STRUCTURE AND PERFORMANCE OF THE SUPPLY AND PROCESSING INFRASTRUCTURE ... 95 4.5.1 Contribution of the processing sector to agriculture and the wider rural economy .... 95 4.5.2 An overview of the food sector .................................................................................... 95 4.5.3 Meat Processing ............................................................................................................ 97 4.5.4 Milk Processing Sector ................................................................................................ 103 4.5.5 Combinable Crop Sector. ............................................................................................ 107 4.5.6 Potatoes ...................................................................................................................... 112 4.5.7 Soft Fruit Sector .......................................................................................................... 115 4.5.8 The input supply and service sector ........................................................................... 116 4.5.9 Impact of European Agricultural Co-ops moving into the UK ..................................... 117 4.5.10 Summary and Key conclusions .................................................................................... 119 4.6 THE FOOD SECTOR OVERVIEW ........................................................................................... 121 4.6.1 Introduction ................................................................................................................ 121 4.6.2 Economic Importance of the Sector: Employment and Gross Value Added (GVA) Trends NE and Scotland .............................................................................................................. 121 4.6.3 NE Food Sector Development Trends ......................................................................... 122 3 4.6.4 Farmers Markets ......................................................................................................... 123 4.6.5 Fish processing ............................................................................................................ 124 4.6.6 Use of the SRDP Food Processing, Marketing and Cooperation Scheme by the food and agri-processing sectors in NE Scotland. ............................................................................... 124 4.6.7 Conclusions ................................................................................................................. 126 4.7 TRENDS IN THE WIDER RURAL ECONOMY .......................................................................... 128 4.7.1 Population and demographic change ......................................................................... 128 4.7.2 Economic structure ..................................................................................................... 132 4.7.3 Business trends. .......................................................................................................... 136 4.7.4 Income and activity levels ........................................................................................... 138 4.8 SKILLS AND CAPABILITIES .................................................................................................... 144 4.8.1 Background conditions................................................................................................ 144 4.8.2 Labour and employment ............................................................................................