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Aberdeen Grain Storage Ltd
01651 882244
www.aberdeengrain.co.uk
Angus Growers 01241 877336
www.angusgrowers.co.uk
ANM Group Ltd
01467 623700
www.anmgroup.co.uk
Argyll Hill Lamb
01852 316220
www.argyllhilllamb.com
Aspatria Farmers
01697 320207
www.aspatriafarmers.co.uk
Ayrshire Country Lamb Ltd
01292 560740
www.farmstock.org.uk
Birsay Farmers Ltd
01856 874654
Borders Machinery Ring Ltd
01896 758091
www.ringleader.co.uk
Caithness Machinery Ring Ltd
01847 841310
www.caithnessmachineryring.co.uk
Co Chomunn An Lochdair
01870 610205
www.carnanstores.co.uk
Dalkeith Farmers Ltd
01875 820810
DWP Harvesting Ltd
01339 885335
www.dwpharvesting.co.uk
East Lothian Potatoes Ltd
01361 883488
East of Scotland Farmers Ltd
01828 627264
www.eosf.co.uk
East of Scotland Growers Ltd
01334 654047
www.eastofscotlandgrowers.co.uk
Farm Stock (Scotland) Ltd
01750 723366
www.farmstock.org.uk
First Milk
0141 887 6111
www.firstmilk.co.uk
First Venison Ltd
01507 353770
Galloway Lamb Ltd
01899 221419
www.farmstock.org.uk
Girvan Early Growers Ltd
01465 715328
Grainco Scotland Ltd
01888 564190
www.grainco.co.uk
Grampian Growers Ltd
01674 830555
www.grampiangrowers.co.uk
HBS Ring Ltd
01463 811603
www.hbsring.co.uk
Highland Grain Ltd 01463 811435
www.highlandgrain.co.uk
Lewis Crofters Ltd
01851 702350
www.lewiscrofters.co.uk
Lothian Lamb and Beef Ltd
01501 823151
www.farmstock.org.uk
Lothian Machinery Ring Ltd
0131 339 8730
www.lothianmachineryring.co.uk
Milk Suppliers Association
01988 700240
www.msa.scot
North Uist & Benbecula Livestock Marketing
01876 500329
Orkney Auction Mart Ltd
01856 872520
www.orkneymart.co.uk
Orkney Business Ring Ltd
01856 879080
www.orkneybusinessring.co.uk
Orkney Cheese Company Ltd
01856 872824
www.orkneyfoodanddrink.co.uk
Ringlink (Scotland) Ltd
01561 377790
www.ringlinkscotland.co.uk
Rural Services Scotland Ltd
01738 550101
www.scotlandfarmer.co.uk
Saltire Seed Ltd 01358 742000
www.saltire-seed.co.uk
Scotlean Pigs Ltd 01228 541566
www.scotlean.co.uk
Scott Country Lamb Ltd 01835 840283
www.farmstock.org.uk
Scott Country Potatoes Ltd 01573 225125
Scottish Agronomy Ltd 01577 862759
www.scottishagronomy.co.uk
Scottish Borders Produce Ltd 01890 751663
www.scottishbordersproduce.com
Scottish Farm Carbon 0300 456 2209
Scottish Organic Milk Producers Ltd enquiries@scottishorganicmilk.org
www.scottishorganicmilk.org
Scottish Organic Producers Association Ltd 0131 335 6606
www.sopa.org.uk
Scottish Pig Producers Ltd 01466 792284
www.scottishpigs.coop
Scottish Potato Co-op 07793 057870
Scottish Quality Crops info@scottishqualitycrops.co.uk www.sqcrops.co.uk
Scottish Shellfish Marketing Group Ltd 01698 844221
www.scottishshellfish.co.uk
Shetland Abattoir Co-operative Ltd 01595 696300
Shetland Livestock Marketing Group Ltd 01595 696300
www.slmg.co.uk
SmartRural Ltd 07840 363164
www.smartrural.coop
Tarff Services 01557 820247
www.tarffvalley.co.uk/tarff-services
Tarff Valley Ltd 01557 820247
www.tarffvalley.co.uk
Tayforth Machinery Ring Ltd 01577 830616
www.tayforth.co.uk
United Farmers Ltd 0131 334 3111
www.unitedfarmers.co.uk
United Oilseeds Marketing Ltd 01380 729200
www.unitedoilseeds.co.uk
SAOS was established in 1905 as a Society to further co-operation in Scottish agriculture (the Scottish Agricultural Organisation Society). Co-ops and co-operative values remain at our core, and all of SAOS’s varied workstreams are centred around enabling and facilitating those involved to work together more effectively for mutual benefit.
Over the years, the SAOS team has identified many areas where a more collaborative approach and getting the right people together are the key to moving forward, whether that be with co-ops, businesses, supply chains, or the whole food and farming industry. This has led to the expansion of our business to explore and convert wider opportunities in every area of food and farming supply chains and rural development, through innovation, coupling new technology with data gathering in various ways, quality assurance, and in a more collaborative response to climate change and more sustainable farming and food production for the future.
Our team continues to grow and diversify as we again move into new areas to work on exciting developments with new partners. Once again, the SAOS annual report reflects on a year when we have been busier than ever, working with food and farming businesses, in a host of ways, to make them more profitable, competitive, and sustainable - working together to shape the future of farming and food.
As an organisation with a long history (and even longer name!) it is often challenging to explain succinctly who and what SAOS is. In simple terms, SAOS is a co-operative business, working with and for its shareholder ‘owning’ members. Those member owners, who ultimately govern us, represent over a third of Scottish agricultural output and operate across every sector, in all regions of Scotland and into the North of England. Our members are both our owners and our customers.
As every business knows, to thrive and succeed you need to remain focused on your customers and always remain relevant. SAOS as a co-op is no different. We try to ensure that all of our work, now more varied than ever, adds direct or indirect value to our members, enabling them to thrive and succeed too. This is the essence of our member value proposition.
There are eight core areas where we seek to maximise member value, ranging from lobbying and representation, specialist business support and advice, to creating collaboration and commercial opportunities. While these areas remain perpetually ‘work in progress’, it’s been a very satisfying year seeing progress in several of them gather significant momentum and providing demonstrable value to our membership.
Our proactive representation within Scottish Government (ScotGov) and other stakeholder partnerships has resulted in explicit recommendations for co-op support within the draft Agriculture Bill proposals. Also proposed are new enabling powers to incentivise greater agri-food co-operation. While these may appear relatively small in stature, they do represent firm foundations on which to develop a new agricultural policy that
Raising your profile with your members, next generation and wider farm and food sector
recognises the impact and benefits of agri co-ops. This has been reinforced by engagement and dialogue with the Rural Affairs Committee’s legislative scrutiny work. We continue to work to embed this thinking and recognition with our industry partners, including the Scotland Food & Drink Partnership, National Farmers Union of Scotland (NFUS) and the new Food and Agriculture and Stakeholder Taskforce.
The Cultivating Collaboration Network (C2N) gathered significant momentum in the last year, in terms of profile, stakeholder engagement and practical outputs for member benefit. The Green Hydrogen theme is advancing well and C2N’s work and the role of co-ops is now firmly on the radar within the ScotGov green energy directorate and funding opportunities are now being keenly scoped out. Revalorisation of agri waste has seen successful funding secured for members involved in potato production, and similar efforts are now being actively explored for our soft fruit membership with respect to the use of wool as a sustainable mulch.
A further step forward was made in the last year in our long-held priority of supporting co-op member training and development, by helping members
develop their internal managerial capability and support rising talent. March saw the successful ‘graduation’ of our first Growing Tomorrow’s Leaders cohort. This programme was developed, with sponsorship support from NFU Mutual and NFUS, after significant market research with our members and industry partners clearly identified a need for an employee-based, personal and business skills leadership programme for those in the agricultural space. We are delighted to have received feedback on the positive impact Growing Tomorrow’s Leaders has made on all thirteen ‘graduates’ - including six SAOS member employees - and how their new learnings and skills can be applied over the coming months and years.
There is much to do in the year ahead to create more and enhanced benefits for our member owners and to capitalise on the opportunities ahead. However, I remain confident that, with the continued drive and professionalism of our dedicated and motivated team, there are positive times ahead for all our members and increased recognition of the values and benefits that co-ops and co-operation bring.
Developing networks and collaborative possibilities for members and industry partners
Developing your co-op team’s knowledge and competence
Giving members priority access to a range of costeffective services
With the cost of food and general inflation still rising, together with a declining UK workforce, running any business, let alone a rural-based one, has seldom been so challenging.
The timing of input purchases, coupled with the decision to sell produce spot or forward has greatly affected the profitability of many of our businesses this year. Our co-ops continue to have an important role in smoothing out this volatility. Machinery rings drive efficiencies in all sectors, while dedicated marketing groups with shorter supply chains help deliver price stability.
Profitability in agriculture remains historically low. In 1972, an arable grower spent 45 - 50% of the sale value of wheat on costs to getting it to store; today we are spending 55 - 60% to do the same. The story is similar across most sectors, with smaller margins, fewer farmers and larger units. Coupled with land use change driven by environmental policy, the energy crisis and climate emergency, this means that a collective producer voice has never been so important.
The burden imposed on our businesses by required sustainability improvements, whether as part of government policy or customer requirements, can be mitigated by having farmer involvement at strategic level through all stages of the audit process. SAOS’s subsidiary business, FIA, which now delivers assurance services for both QMS and SQC, is focused on making sure that standards are deliverable and reasonable at farm level, so that producers can concentrate on what they do best, while benefitting
from the advantages that quality assurance can deliver.
Scottish Government’s development of new Agricultural Policy is slowly gaining some structure and SAOS continues to feed into this process through the Agriculture Reform Implementation Oversight Board (ARIOB), and providing evidence to the Rural Affairs and Islands Committee at the Scottish Parliament in March this year. With new heads at NFUS, SF&D, and at the top of Scottish Government, building and maintaining working relationships with ministers and civil servants continues. This is one that SAOS does particularly well, ensuring that our growers and co-op members are effectively represented at policy-making level.
Bob Yuill and the ScotEID team in Huntly, including new General Manager, Scott McDowell, continue to design, develop, and deliver a livestock tracing scheme that has gained respect nationally for its track record of delivery. All credit to the Huntly team for this, and particularly to Bob, for his unique insight and problem solving that has driven this project over the years.
SmartRural, now under George Noble’s stewardship, has secured funding to ramp up its work connecting rural businesses together, and we expect this part of SAOS’s business to develop
strongly over the next few years. As a coop, ownership, control and value of the data gathered is retained by the farmer members who generate it, quite unique in the digital world.
SAOS has been involved in numerous other projects over the last year in areas including supply chain development, co-op governance and training as well as helping collaborative groups get specific projects off the ground. Carbon reduction and sustainability are common recurring themes work. I would like to thank the team at SAOS for the versatility and commitment they show when tackling each new job.
As SAOS continues to grow and develop, its governance structure needs to reflect the fact that there are various pillars of the business which require a degree of autonomy but are still able to deliver synergy benefits across the whole business. I believe we now have in place a structure that will serve SAOS well during the next phase of its development. I would like to thank Tim and the rest of the Board for this, and for all their efforts over the last year.
The urgency for climate change action and sustainability improvements has remained undiminished, despite the global turbulence arising from firstly Covid and then the Ukraine war. Awareness of the role and potential for co-ops, as values-driven ‘vehicles’ to lead and implement change more quickly and at scale, is gaining recognition.
The Scotland Food & Drink-funded Co-ops and Climate Challenge Programme continued to develop momentum over the last year. Activity included holding focused ‘climate change assessments’ with a range of members. A concept paper was developed and inception workshop held to explore relevant sustainability metrics. A co-op sustainability roadmap is being worked up which includes good progression on the environmental management co-operative concept. Case studies on co-op best practice are now in development and there has been a final refinement of sustainability action plan templates, ahead of testing which is now underway.
In October the development of the co-op sustainability roadmap was informed by a three-day study trip to Denmark to explore how Danish co-ops are handling sustainability and the climate crisis on behalf of their members. A group of nine co-op managers and chairs made the trip. Visits/presentations heard included Arla Foods, Arhus University, KMC Ambe, BM Silos, DLG, Danish Agric and Food Council and the Danish Research Institute for co-operation.
We launched the C2Network in 2021 to encourage cross-sector collaboration and provide a forum for academia, research institutes and technology providers to work with co-op members to find innovative solutions to key challenges. A successful year for C2N saw significant progress made on work around the decarbonisation priority. The Green Hydrogen theme progressed well, with the creation of three workstreams - business model, policy/ funding, and engineering; and the first in person meeting incorporated a visit to an NFUS member’s farm to see their green hydrogen advances. In August, a successful webinar on ‘Revalorisation
of Agri Waste’ was delivered, and this theme is now also progressing well with a successful application for funding to IBioIC for a feasibility study of co-products from the potato growing industry; and detailed exploration for the ‘wool for mulching’ project which included Angus Soft Fruits, academic partners and a wool packaging manufacturer. The next priorities for C2N are being worked up based around the Earth Observation and Data theme.
As ever, we have been busy supporting SAOS co-op members with governance advice, strategy development work, member engagement programmes and business development support. A significant amount of support has been provided to scope out and launch the new Seed Potato Organisation (SPO) co-op, helping fill the void left by AHDB Potatoes’ demise. Work has included supporting the production of a prospectus and five-year financial plan. A website and logo have also been developed. A series of meetings were arranged with seed growers throughout the country and recruitment is progressing well, with 40 grower members having joined by the end of March, representing over 20% of the seed potato planting area.
SAOS has provided training courses to members for many years, traditionally with a focus on governance-related matters. Over recent years this has diversified to include relevant business and personal development topics. In the last year we took another step forward, launching a new leadership programme, Growing Tomorrow’s Leaders. The training has been designed around the strategic and operational challenges facing the industry and provides co-op members and wider rural organisations with the opportunity to encourage and enable promising employees, expanding their personal skills and mind-set. Other very successful training has included the two-day Co-op Management in Practice (C-MiP) event and two new training modules ‘Negotiation and Remediation’ and ‘Coaching and Mentoring for Managers’.
SAOS has been undertaking critical food and drink development work for over two decades. More recently, the words ‘supply chain’ have become almost a daily reference as our food and drink systems have creaked, faltered, and responded intuitively to various crises.
Following the Ukraine invasion last year, the Scottish Government invited SAOS to become a core member of their Food Security Taskforce. The first priority was supply chain analysis to enable assessment and prioritisation of the challenges, built around the new surveillance mapping work that was already underway. SAOS successfully created a risk register quantifying both the likelihood and impact of critical concerns across the entire supply chain, to be updated quarterly. Welcomed by the Scottish Government, insights are being fed directly to the newly-formed Food Security Unit. The underpinning 22 supply chain maps are regularly updated to benchmark economic, environmental, and social sustainability and are used extensively throughout the sector.
One of the last year’s high profile supply chain challenges was the shortage of food grade carbon dioxide (CO2). In response, SAOS led the way to find new suppliers for the sector to address the over-reliance on by-products from fertiliser production and imports. Plans are now being progressed with a Scottish-based CO2 supplier, and with whisky distilleries and breweries looking to recycle their CO2 offtakes.
The Scottish AgriExport Hub, operated by SAOS in partnership with sponsors NFU Scotland, is proving to be a successful new initiative. The Hub has been working closely with the potato sector on both its new strategy and the exploration of possible improvements to logistical capabilities from Scotland, including port infrastructure and sea shipments. The Hub has assisted a Gluten Free Oat Producer to export directly to the US, and further added-value opportunities are being investigated with the SF&D international in-market specialist network. Funding was secured to enable an inward mission of Egyptian plant health
officials, and similar discussions have also been taking place to support an inward visit from Pakistan. Finally, funding was secured from SF&D to support the seed potato and horticulture presence at the 2023 Fruit Logistica event in Berlin in February, providing a platform to showcase the sector and host clients.
SAOS successfully delivered several market scoping and supply chain development projects over the year. These included the local food ‘Driving Growth Through Wholesale’ project in partnership with the Scottish Wholesale Association and SF&D; specialist export and logistics support; delivering supply chain sustainability events for the dairy sector; and research into ‘Blue Economy Opportunities for Scottish Farmed Shellfish’ for Crown Estate Scotland, to help shape stakeholder and Government thinking on this new opportunity. SAOS has been working closely with the Scotch Whisky Association to benchmark sustainability activities in the farming, grain handling and storage elements, and consulting the distilling sector on the use of bulky organic manures.
SAOS continues to play an integral facilitation role with iconic Scottish
food categories, including Scottish venison, langoustines, fruit, and seed potatoes. This has involved review and recommendations for organisational design, strategic development and research, including quality assurance and sustainability themes.
Finally, SAOS continues to be at the heart of the SF&D Partnership, providing key input into the new strategy and delivering critical areas of agreed workstreams. These include the management of the Knowledge Bank and the Regional Food Fund, which disbursed small grant funding to local initiatives; strategic support to collaborative food groups in areas as diverse as apples, cheese, and flowers; and identifying the crucial underpinning factors for the proposed new concept for an overarching Scottish brand.
SAOS’s involvement in sustainability initiatives has continued to develop over the last twelve months. We worked in collaboration with our members and different partners on a wide range of innovative projects and programmes.
Our initial natural capital scoping work with the pioneering Pentland Land Managers Association (PLMA) has now been extended into other collaborative ventures. One emerging development is assisting cereal growers to address natural capital opportunities with their supply chain customers, Diageo and PepsiCo. This has involved working with a group of Fife farmers to develop a proposal and prospectus focused on an ABC (Agronomy, Biodiversity and Carbon) approach. Partnering with the farmers on the project are SAOS coop members, Scottish Agronomy and GrainCo, and the Game and Wildlife Conservation Trust.
We continued to support NatureScot with its ‘Piloting an Outcomes Based Approach in Scotland’ (POBAS) project with the Milk Suppliers Association in Dumfries and Galloway. Outputs from the trial of on-farm biodiversity measurements have been shared, and the findings are now being evaluated.
SAOS is involved in two pan-Europe agri-sustainability projects. The MIXED Farming Project involves working with SRUC and EU partners to share knowledge of different production systems. Work here to date has involved completing repeat samples to assess the soil life changes following cattle grazing on arable land, and co-ordinating cover crop grazing trials during winter 2022/23. The IntercropValueES project, a collaboration between 27 partners, again including SRUC, aims to harness the benefits of intercropping to design and manage productive, diversified, resilient and environmentally friendly cropping systems reducing the dependence on inorganic fertiliser and chemical inputs. SAOS’s work will involve producing case studies in relation to the supply/value chain of high value products derived from intercrops.
Two pioneering climate change pilot projects were successfully completed with funding from the Scottish Government’s Knowledge Transfer and Innovation (KTIF) fund. The first was a joint project involving East of Scotland Farmers and Highland Grain, exploring decarbonisation of malting barley production. Involving sixteen growers across the two co-ops, the primary focus is for the co-ops to take a leading role in helping members reduce their GHG emissions in malting barley production. The project involved desktop research of good practice mitigations for arable farming, undertaking on-farm carbon footprint audits, and delivering a joint workshop to discuss the outcomes and recommendations for mitigation actions and priorities. These findings are now being cascaded across the 300+ growers of both co-ops. The project has secured KTIF funding to move into a second phase.
The second project, ‘Data Driven Decisions in Potatoes – Tackling the Climate Challenge’, with the Scottish Potato Co-op, focused on how to improve decision making and the productivity of the potato sector, to reduce GHG emissions and its impact on the natural environment. The initial benchmarking group involved eight growers with
more joining later. The group has made good progress, now having a more detailed understanding of the production costs of ware potatoes and the associated environmental impacts. This benchmarking work has been complemented on some of the growers’ farms, with carbon footprinting audits and pilot project outcomes being circulated around all the co-op members. This project has also secured second phase funding from KTIF.
SAOS’s CarbonPositive (CP) environmental data platform work has been re-initiated following its mothballing as it was due to launch during the COP26 climate summit in Glasgow. With SAOS’s sustainability work expanding, the team has now started exploring re-purposing opportunities for CP, including as a potential user interface for farmers to see their own data, as well as a geographical grounding and mapping tool for farm and natural asset locations, and offering access to live, dynamic input from digital sensors.
December 2022 saw the launch of MyHerdStats, which was developed by ScotEID with support from the Scottish Government. This uses cattle registration and movement data to provide cattle keepers with consistent and accurate insight into their herd performance.
The online tool securely presents herd management information to all Scottish suckler beef cattle herds, automatically generating insights and trends on the herd’s performance through a series of charts and tables highlighting areas of opportunity for possible improvement. Keepers have access to a selection of indicators and trends, including cow retention and calf registration data; cow calving data; cow and heifer efficiency values; cow and calf mortalities; and sale date profiles for breeding and youngstock.
October 2022 saw the first anniversary of cattle births, deaths, and movements going live on ScotEID via the ScotMoves+ platform. During this time, ScotEID has registered over 600,000 cattle births, 760,000 deaths, 2.1m movements and 250,000 cross-border movements. This activity was recorded by livestock markets, abattoirs and 10,600 individual cattle keepers, and supported by the Huntly office’s team of 17.
ScotEID has continued to develop systems and procedures for the processing and handling of differences in the cattle data sets held on ScotEID, and automating the sending of imported cattle data to systems in England. The team is also working with the Defra Digital, Data & Technology Services (DDTS) team on the requirements for the UK-wide view for sheep movement data. ScotEID has also recently been contracted by the Scottish Government poultry inspection team to build and operate a replacement for their Gallus system to record inspection results of egg producers and processors.
In partnership with ANM Thainstone, ScotEID hosted several live UHF demonstrations of cattle moving through the mart and hosted demonstrations at the Huntly office of the new ScotMoves+ functionality. Attendees included the bovine EID industry group, officials from
Welsh Government, Defra, SG, Allflex, representatives of the English and Welsh NFU, and the National Beef Association.
Work on the bovine EID pilot continues, to date involving 300 partner farms, with 185,000 cattle UHF-tagged, and working with 22 auction marts (two of these in England), 14 abattoirs and two port lairages. The systems designed are achieving a 100% read rate in trials. ScotEID continues to work with industry and the Scottish Government on the mandatory introduction of bovine EID for newborn calves during 2024.
SAOS’s SmartRural business scaled up again in the last year. The roll out of Long-Range Wide Area Network (LoRaWAN) coverage for Angus Council was completed, providing 200 km2 of coverage in eastern Angus. Trials of low voltage line monitoring equipment for Scottish and Southern Energy Networks was also successfully completed, and scoping work has started for a phase 2 wider deployment. SmartRural has played an integral role in SAOS’s delivery of Opportunity North East (ONE)’s Technology and Climate Project, with the objective of increasing awareness and understanding of the benefits of AgriTech amongst the farming community.
Finally, the Scottish Government’s Agricultural Transformation Programmefunded Data Digital Pilot was launched in summer 2022 with the aim of developing the case for widespread adoption of digital data across Scottish farms, to help transform production and environmental performance. SmartRural will be responsible for installation of LoRaWAN connectivity on 40 demonstration farms, providing sensor solutions, IT dashboards to visualise data and advice, and support for pilot participants. Innovative sensors will also be trialled, to monitor peatland health, cattle rumen performance and pollinator insect activity.
SAOS’s team is our greatest strength. Once again, we have grown and developed the team as our work expands into exciting new areas.
Every member of the team is valued and empowered, and each has an individual skill set and networks, enabling them to move across workstreams to add benefit either to planned projects or reactively when necessary.