Carmichael backs farmers’ union concerns over SNP price control plans

Orkney and Shetland MP Alistair Carmichael has today backed farmer concerns about the impact of proposed price caps on food, which risk undermining farm and croft profitability.

First Minister John Swinney last week announced plans to set price limits on food, which have been widely criticised by food producer organisations and economists.

The National Farmers’ Union Scotland has written to the First Minister to raise their concerns about the proposals, while the Chair of the Shetland Livestock Marketing Group, Cecil Eunson, has warned that “nobody believes that the supermarket will take the hit, that hit will be passed on to the primary producer”.

As Chair of the House of Commons Environment, Food and Rural Affairs Select Committee, Mr Carmichael took evidence last week from a range of experts, regulators and industry voices, in which the proposed price cap was heavily criticised.

Mr Carmichael said:

“The National Farmers’ Union Scotland have made their concerns clear both nationally and in the Northern Isles that even if it worked as intended, the cost of this price cap policy would fall on farmers, crofters and other primary food producers. It also risks undermining the viability of small country shops which are vital to our communities in the Northern Isles.

“Food price inflation is a real problem – just not one that has an easy answer. What could perhaps make a difference, as was set out in evidence to the EFRA committee last week, would be government intervention to help farmers meet their rising input costs like fuel and fertiliser, so that we tackle food price inflation at the source of the problem.

“The cost of this would be relatively modest and would not come with any of the unintended consequences of a price cap. It is not, of course, as flashy or as useful for those who want to pick political fights with the UK government – which is probably why the SNP are not interested in that solution.”