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Response from the Hills – SAC Report Shows Beef and Sheep Producers Positive, but No Return to Old Days

SAC News Release Ref. No: 11N149
Published: 14 Dec 2011

Hill ewes in Scotland (opens in new window)

A new SAC report suggests Scotland’s hill farming sector is responding to recent economic and policy signals, that the retreat from the hills has stabilised with some evidence of localised increases in sheep and cattle numbers.

Response from the Hills”, produced by SAC’s Rural Policy Centre, updates the analysis published during 2008 in our landmark report “Retreat from the Hills”. It detailed a dramatic decline in upland sheep and cattle numbers and the resulting effect on communities and downstream industries. SAC’s latest look at the evidence now suggests that as financial returns from beef and sheep have improved many upland producers are looking to the future with greater confidence.

However, the detailed analysis also identifies the wide variation of response across and within Scotland, coupled with changes in farming systems.

According to the report author, SAC Economist Steven Thomson:

“At national and regional level it appears the industry is turning a corner. At a more local level this is not always the case. For example there is continued decline in Lochaber while Caithness and Sutherland are showing signs of recovery”

“Even that does not mean a return to former times. Farmers are now more commercially aware and adapting their businesses rather than focussing on maximising CAP headage payments. As a result we are seeing changing herd or flock sizes and different breeds or types of stock. The shift from the high hills to lower ground is also continuing”.

The report “Response from the Hills” identifies how reduced stock numbers and the abandonment of steeper, less productive land is impacting on the environment and biodiversity. The reduction in grazing pressure and human activity are producing noticeable effects. There is evidence of declines in farmland birds and higher numbers of deer and predators with an increase in rank vegetation. In some areas the loss of skilled labour is evident, although in others agriculture appears to be more resilient to the economic downturn, with increased employment, possibly among family members.

There is confirmation that the number of Scottish breeding sheep is now at its lowest in over a century. However this tightening of supply is not restricted to Scotland and has been matched with an increasing global demand for lamb and beef which has helped keep prices high. Meanwhile input prices have also climbed and many in the hills and uplands still rely on their single farm payments or Less Favoured Areas supplements to subsidise their businesses.

“A key element in the equation is the exchange rate”, believes Steven Thomson. “They have played and continue to play an important role in the livelihoods of Scottish beef and sheep farmers”.   

“In this decoupled era Suckler Cows and sheep in the LFA sheep have returned to profit in the uplands. Hill sheep systems are just wiping their face”

The report highlights the importance of ruminant livestock to Scotland. Across the EU only Ireland has a greater dependency on cattle and only Wales a greater dependency on sheep. It urges producers to continue restructuring their businesses during this period of much improved returns so that their businesses are more robust and better able to survive the challenges ahead.

However, there is evidence farmers, especially the top performers, are showing more interest in improved technical efficiency initiatives (eg Monitor Farms) and disease control programmes. The report makes clear such restructuring will lead to further changes in Scottish farming patterns. This will include the downstream industries and support sector.

Report Author Steven Thomson can be reached via the details below.

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News Release Contacts

SAC Contact

Mr Steven Thomson
Agricultural Economist
SAC (Scottish Agricultural College) Work SAC, King's Buildings, West Mains Road,
Edinburgh
EH9 3JG
TelWork 0131 535 4192

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News Release Issued By

Mr Ken Rundle
Senior Communications Officer
SAC (Scottish Agricultural College) Work SAC, King's Buildings, West Mains Road,
Edinburgh
EH9 3JG
TelWork 0131 535 4196

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