SAC Consulting: Perspectives (Spring 2024 | Issue 07)

Perspectives

The power of data sharing

Nitrogen: The essential element

A conversation with Adam Carson, Diageo

Contents

3

6

Introduction

ANDREW LACEY

Balanced application will bring regenerative agronomy success

FIONA BURNETT

The scope 3 conundrum

ANDREW BAUER

Navigating the changing landscape: The farmer’s role in climate action

DONALD DUNBAR

Nitrogen: The essential element

SASCHA GRIERSON

Staff spotlight

KIRSTY CARNEGY

4

Increasing capability and innovation in the dairy space

STUART MARTIN, DIGITAL DAIRY CHAIN

Partnerships and the path to net-zero

KERRY HAMMOND

A conversation with…

ADAM CARSON, DIAGEO

The power of data sharing

DAVID BELL

New testing partnership will boost soils and forage analysis

MALCOLM HOSIE

Staff spotlight

STERRE VESTER

Welcome to the seventh issue of our industry-focused magazine, Perspectives! As ever, we are excited to share with you some of the new research, ideas, insights, and projects we have been engaged with over the last few months.

ANDREW LACEY, VICE PRINCIPAL OF COMMERCIAL AT SRUC AND HEAD OF SAC CONSULTING

In this edition, amongst the many great articles, I’m pleased to share our interview with Adam Carson from Diageo, who we have been working with as part of their regenerative agriculture programme (amongst other things), dairy industry insight from Stuart Martin from Digital Dairy Chain, some thoughtful consideration about agricultural emissions from Andrew Bauer, Head of Food & Footprint, and a deep dive into the world of data analysis from David Bell from our livestock team.

Before you dive in though, some of you may know that I am moving on from SAC Consulting, and this will be my final Perspectives introduction. The last six years have been great experience and I have loved working in the agricultural sector. Coming into the role, I had a background in other areas of business and other industries, but I have found the farming community to be warm, welcoming, curious, innovative, and passionate in all that you do. I found this energising and it drove my enthusiasm to help SAC Consulting continue to develop its potential and be fit to meet the challenges ahead. Over the last few years, we have developed further capabilities to help support the industry with the opportunities and challenges posed by climate change, new policy development and market forces.

In my time here, we have grown our numbers by over 40 consultants and worked hard to maintain a geographical presence which enables us to support farmers and crofters across Scotland, ensuring that our depth of knowledge, local experience, and independence remain at the forefront of who we are.

I will forever be grateful to our customers, for both the challenging feedback, and the encouragement I got from so many of you across the sector. Your belief that SAC Consulting is going in the right direction is thanks to a wonderful group of colleagues who will continue to support you, now and in the future. All that’s left to say is thank you and I hope you enjoy this edition of Perspectives.

Mary Thomson is taking over the leadership of SAC Consulting from April 2024. mary.thomson@sruc.ac.uk

Increasing capability and innovation in the dairy space

Digital Dairy Chain’s Programme Director, Stuart Martin, explains why UK Research & Innovation’s injection of £21million is vital to secure the sector’s future growth

STUART MARTIN , PROGRAMME DIRECTOR | DIGITAL DAIRY CHAIN

Last year trade experts at the Institute of Export & International Trade welcomed Chancellor Jeremy Hunt’s plan to lift UK growth by focusing on enterprise and education. He identified that the golden thread running through the industries where Britain does best is innovation.

Whilst innovation has been a dynamic part of new product development for dairy manufacturers to add value in a highly competitive and consumer trend-driven market, financial constraints have often limited technological agility and process developments in parts of the UK dairy supply chain.

The UK needs to match comparable high-income countries in its adoption of effective agricultural technologies and recent trends would indicate attitudes are changing. The rising number of robotic milking system installations is a clear example where innovation has been used to solve a problem.

Emerging technologies provide farmers with data-driven insights, allowing them to improve and streamline farm management at all levels, increasing productivity and, importantly, sustainability.

With national milk processing companies attaching an increasing number of sustainability KPIs to milk contracts and a strong consumer interest in the environmental impact of dairy farming, there is no doubt technology is needed. Industry-led research and development is a key driver of economic growth as it spurs innovation, invention, and progress.

This steadily increasing uptake in innovation and R&D by the dairy sector is demand-led by the consumer and government legislation. It is also driven at farm gate level as farmers strive for excellence to satisfy supply chain demands and to help keep the business profitable to ensure a future legacy.

Innovation is very much part of the backbone of the Digital Dairy Chain’s objectives. One of the biggest challenges is putting theory into practice but we’ve done just that.

In conjunction with Innovate UK, Digital Dairy Chain hasrecently funded seven groundbreaking R&D projects that will significantly advance long-standing processes in the dairy supply chain.

The individual projects have each received grants of between £200-350K which will be invested in work taking place predominantly across Cumbria and South and West Scotland. The projects, all within our geographical reach, had to be collaborative, and business-led; as well as showing a realistic potential to support business growth, scale-up and job creation for the sector.

The focus on Cumbria and South and West Scotland was due to their rich natural capital yet low business spend on R&D and the negative prosperity gap reported by local authorities.

Approximately a 13% share of the UK’s dairy herd are located within this area; it is the UK’s second largest milk producer, supplying approximately 1.9bn litres of milk with an estimated farm-gate value of £550m.

The area is also home to 52 dairy processing businesses ranging from large multi-nationals to small artisan producers, adding value to milk from 1,300 farms. The dairy manufacturing sector is a vitally important source of economic activity for the area, but kickstarting innovation still required cash and the ability to facilitate industry collaboration.

Innovation is very much part of the backbone of the Digital Dairy Chain’s objectives. One of the biggest challenges is putting theory into practice but we’ve done just that.

The seven winning projects faced some strong competition, and the calibre of applications was very impressive. Proof again the appetite for R&D in the dairy sector is high but innovation requires investment in terms of both time and money. It’s the classic chicken and egg scenario for regions such as Cumbria and South and West Scotland.

Business growth opportunities arise from new technologies; new markets; import substitution; and consumer demands around food quality, environmental impact, and animal welfare.

These, together with government initiatives to increase innovation, improve skills, minimise waste, and move towards a net-zero economy are collectively significant. Projects, such as the Digital Dairy Chain, show that where there is funding, support, and expertise, they are being wholeheartedly embraced by the dairy industry and transformative innovation will be the outcome.

Balanced application will bring regenerative agronomy success

FIONA BURNETT , ARABLE KNOWLEDGE LEAD | SRUC

Balancing food production with the needs of the environment is challenging and there is no one-size fits all solution that will work on every farm. Attention to detail and an approach carefully tailored to each farm is needed, with hard evidence replacing fuzzy rhetoric.

Arable crops underpin food production – whether consumed as grains and vegetables, or as food for animals or use in biofuels. They occupy 24% of the land area of the UK and are vital to food security but also need to address biodiversity gains and play their part in mitigating climate change. The argument that the UK does not need to be food secure is simply to offshore the problem to somewhere else, whilst also damaging local supply chains. Finding the middle ground between production and the needs of the environment is where new solutions and innovations are starting to emerge and why the term ‘regenerative’ farming is coming to the fore.

Much is said and written about regenerative practices, but it is a term that means different things to different people and is easy to claim but hard to evidence when it comes to food labelling. Originally it was taken to mean practices that regenerated the health of the soil and were less reliant on artificial inputs. It also began as more of a philosophy and movement, rather than any particular science or discipline. At its core, it recognises the need to balance food production with the need to protect biodiversity and the environment. But ‘regenerative’ has evolved a long way in a short time.

One of both its strengths and its weaknesses is the lack of any rigid definition. We believe that regenerative practices should apply right along the supply chain and apply to all enterprises involved.

What it should not be, is simply clinging on to old farming practices which limit yield and the resilience of the farming business. The use of new technologies is integral to more sustainable and profitable farming systems, and

Finding the middle ground between production and the needs of the environment is where new solutions and innovations are starting to emerge and why the term ‘regenerative’ farming is coming to the fore.

we use the term ‘regenerative’ to include new innovations such as precision technology, novel biological solutions, tailored crop inputs and novel crops.

Like all integrated practices it is harder to implement regenerative practices on farm than a one-size fits all high-input system. Maintaining flexibility and tailoring approaches to each farm, or indeed each field, and thinking across the rotation is vital. Setting rigid rules can lead to unintended consequences – for example, a supermarket protocol that gave a set definition of a healthy soil would be impossible for someone on a sandy soil to achieve and would mean that farmers on a high organic matter soil would have no incentive to improve. And it should apply right along the supply chain. It would be perverse for farmers to do their bit and then hand it into a food chain that doesn’t value the commodity or treads irresponsibly on social and environmental commitments.

Regenerative agriculture is a holistic approach to farm management that focuses on restoring and enhancing the natural processes that underpin production

(e.g. energy capture, nutrient cycling, and species interactions). Restoring ecosystem health ensures these vital processes can withstand environmental shocks, building resilience into the farming system. Regenerative agriculture draws on a toolkit of management actions, and decisions are underpinned by the farmers’ knowledge of their land, and their situation, to find solutions that work for them.

Approaches need to be tailored to each individual farm and it is knowledge intensive which is where SAC consultants can help, using the evidence from SRUC research.

It has to be as evidence-based as any other discipline – pesticides are rigidly tested and regulated but some inputs, such as biostimulants, are not subject to the same degree of scrutiny, and it is in no one’s interest, let alone the environment’s, to be applying inputs that the crop does not need. Hard facts are needed and SRUC research into agroecology, which is the underpinning science, can highlight the things that work in UK’s climate, soils, and arable systems.

Partnerships can pave the way to net-zero

KERRY HAMMOND , PRINCIPAL CONSULTANT FOOD & ENTERPRISE | SAC CONSULTING

Henry Ford said, “Coming together is a beginning, staying together is progress, and working together is success.” He wasn’t wrong - partnerships are key to success. What one person can achieve on their own, is amplified, magnified, and extended when that effort is shared amongst others with the same purpose, drive, and passion.

In the rural sector, people have worked together in different ways over 100s’ of years. Informal neighbouring between farmers saw labour, tools, and resources shared equally and freely without expectation of gain or profit.

Collaboration, co-operation, and partnership all sound like the same thing, so what’s the difference?

Collaboration is an informal approach, much like neighbouring, where there is an understanding that two or more parties will work together towards a common goal, helping each other, but not necessarily on a long-term basis.

Co-ops (Cooperatives) started to gain traction in agriculture over one hundred years ago, with The Ayr Farmer’s Market being amongst the first. A co-op is owned by individual members with a similar common goal and is run by them (as opposed to investors or shareholders). As a business, the bottom line is important in all decision making, and ultimately business success (and profitability) is what drives the activity of the Co-op. Co-ops now are big business for Scottish Agriculture with co-ops like First Milk, Scottish Pig Producers and The Scottish Potato Co-op.

A partnership brings together the benefits of informal collaboration, formal co-operation, and adds a new ingredient all of its own, ‘purpose’. Partnerships offer opportunities to any organisation, institution, or business to work together, as part of a collective, to improve or change things at an industry, national, or even global level. A partnership transcends an informal collaboration, as it is a formal and binding agreement, it is something concrete, with alignment, shared vision, and efficiencies, that requires commitment. It remains different to a co-operative as the partners are not members or owners, and the partnership doesn’t necessarily have purely a

business interest. Partnerships allow all parties to bring the absolute best of themselves to the table, elevating purpose and leaving commercial sensitivity in the dust.

SAC Consulting recently announced an innovative new partnership with environmental charity, Keep Scotland Beautiful. With a growing emphasis on sustainable business activity to access funding, and on the measurement and reduction of carbon footprints in the rural, food and land-based industries, it is crucial that there are opportunities to build a broad understanding of the carbon landscape, terminology, and technical information. The main output from the partnership is a course designed to deliver opportunities for people operating in the agricultural, food and drink, and landbased sectors to gain a recognised qualification in carbon literacy.

As we know all too well, Scotland has committed to achieving net-zero by 2045, five years earlier than the rest of the UK. In order to achieve this goal, we (Scotland) are going to need some real innovation and collaboration in our approach. We believe that this partnership and the course, “Carbon Literacy for Rural Industries”, supports the aim of helping future proof the industry, one business at a time, in support of Scotland’s net-zero ambitions. We understand the intricacies and difficulties encountered by agricultural, rural and food and drink businesses when trying to make real changes to mitigate their greenhouse gas (GHG) emissions.

Climate change and the issues surrounding it have become more polarised in recent years and unfortunately this looks set to continue. The key to combating negativity and scepticism is to embrace new or different skills, seeking out relevant knowledge and looking for opportunities for unity between organisations that can make a difference. It relies on recognising that while our individual emission mitigation actions do have power and contribute to tackling climate change, we have more collective power as a partnership of industry, nation, and planet to get to net-zero together, than alone as individuals.

We have more collective power as a partnership of industry, nation, and planet to get to net-zero together than alone as individuals.

Keep Scotland Beautiful were an obvious partner for SAC Consulting because they share our purpose. We both are determined for Scotland to achieve a just transition to net-zero and believe that the biosphere (our ecosystem) is foundational to this. This groundbreaking training course, ‘Carbon Literacy for Rural Industries’, is the first of its kind in the UK, designed specifically with the needs of the rural and food & drink industries at its heart, looking in-detail at mitigation actions we can take in our biosphere. This was the purpose that united us and led to success in our partnership. “Carbon Literacy for Rural Industries” is a course that delivers science in an easy to digest format, equipping the participants with the knowledge they need to understand how to reduce their own emissions. The course also explores how an individual can work as part of a group, collective, or partnership to use their influence, skills, and knowledge to help others to reduce their emissions. This course could help every individual who feels that they are tasked with

mitigating their emissions alone, to find alignment, and opportunities for partnership, and co-working, making the transition towards net-zero, more achievable and easier to understand.

If you are on your own path to net-zero and want to explore how a partnership could benefit you, then firstly, find like-minded businesses or organisations and assess your alignment, do you have a shared vision of how to achieve net-zero? Work out how to harness efficiencies, enjoy co-benefits, and formalise the agreement. When you realise that you’re making strides towards your purpose, that your teams and stakeholders are on board with a shared vision, and your emissions are successfully reducing, you’ll be on the right track for success.

Find out if your first step to making those connections and finding partnership opportunities could be through our course, Carbon Literacy for Rural Industries.

www.keepscotlandbeautiful.org/carbonliteracyruralindustries

Get in touch

kerry.hammond@sac.co.uk

The scope 3 conundrum

ANDREW BAUER , HEAD OF FOOD

AND FOOTPRINT | SAC CONSULTING

The need for climate action is never far from the headlines. Whilst promising technological aids such as 3-NOP and green hydrogen are on the horizon, it is worth remembering that agriculture can be a mucky business and so can be reducing its emissions.

Making progress means embracing the challenges we face now, including those presented by our famous burping and farting cows.

The biggest gains are not to be found in technological silver bullets, but instead in improving efficiency through refining current methods and bringing once niche practices (e.g. regenerative agriculture) into the mainstream.

With over 190,00 farms across the UK, agriculture is a highly fragmented industry. Let me give you an example – processors and retailers will concern themselves with their own supply chains, however the beef supply chain illustrates why a narrow view of what matters can be problematic.

Most processors buy their beef from a small number of finishers (large farmers who buy cattle from lots of other typically smaller farmers (breeder stores) to prepare them for slaughter). Without the strong flow of data between the breeder stores and finishers (especially the kill sheets that provide key slaughter data) and a good understanding of the optimum cattle specification, inefficiencies are guaranteed. For example, the carbon footprint of beef from an animal slaughtered at 700 days is 30-40 percent higher than from one slaughtered at 520 days.

Despite the complexity and trade-offs, it is reassuring to see so many processors and retailers taking their Scope 3 emissions seriously. Motivations for this may vary. For some, it is meeting or getting ahead of consumer expectations. For others, it is ESG (environmental, social and governance) performance to keep investors on side and the supply chain resilient to increasing climate-driven pressures.

Case study – M&S

SAC Consulting helped M&S compare its Pathway Beef against standard UK breeder-finisher systems.

“The collaboration with SAC Consulting has proved crucial for the success of this project, as we want to ensure we are both facts based, and science led in our decision making.”

Steve McLean, M&S Head of Agriculture & Fisheries Sourcing

Whatever the motivation, there is a serious groundswell of interest and investment moving into agriculture.

With that in mind, we need to ensure the reach down into the supply chain – into famously independent, proud, and often family-run businesses – is done right and sensitively, with practical knowledge and pragmatism.

It means understanding the often hyper-local context. For example, why sowing clover on one farm would be advantageous but on another farm a few miles away it may be a fool’s errand. It means being sensitive to the

significant practical and cognitive changes required to transition to a new normal.

We need to be much more accommodating, providing the necessary support to overcome challenges. We also need to consider the financial and time related obstacles this throws up, for what are by most other industry standards, small businesses, when subjected to a wide range of regulatory, market and environmental pressures.

It is essential to recognising that farmers are not passive in this process – they too want to chart a course to a positive and sustainable future.

Tackling agricultural emissions is daunting, but for all businesses large or small, it cannot be overlooked. Having worked with a wide range of food supply chain businesses to understand their agricultural Scope 3 and put in place practical measure to reduce them, my advice is not to let the perfect be the enemy of the good.

Start by accepting, accounting for, and acknowledging the limitations in your data. Do a broad scale analysis of your Scope 3 emissions, and once you have identified the greatest potential gains, do a more detailed carbon footprint in line with the regulations. Align your work with your available budget for action and ensure you have an appropriately grounded implementation plan.

Take your marketing team along with you, so they really understand what is happening and can accurately represent it. However, if you decide you need help from a consultancy, be sure they really understand the practical realities of agriculture as well as the theory of emissions modelling.

Case study – Angus Soft Fruits

Angus Soft Fruits worked with SAC Consulting to measure and reduce the greenhouse gas (GHG) emissions associated with the production, processing, transport, and packaging of berries in its global supply chain.

“The team at SAC Consulting have been really accommodating to tailor the support to our exact needs and create even more value within our emissions calculations with their expertise.”

Catherine Russell, Sustainability Manager, Angus Soft Fruits

The experienced team at SAC Consulting offers the breadth and depth of consultancy needed, to make informed and holistic decisions about supply chain sustainability. Our history and values give us invaluable on-the-ground experience of the unique purpose and needs of land-based or food and drink businesses.

We provide private, public and third sector customers an accessible and responsive, yet robust and comprehensive, blend of independent advice and practical services that draw on the cutting-edge knowledge of the wider SRUC. Please do get in touch if you would like to discuss your sustainability challenges.

Get in touch

andrew.bauer@sac.co.uk

A conversation with Adam Carson of Diageo

It may not be glaringly obvious to shoppers as they browse products on supermarket shelves, yet global drinks giant Diageo’s (maker of Johnnie Walker, Guinness, and Smirnoff) commitments to sustainability extends far beyond its distilleries and bottling plants. At the heart of their approach to become sustainable by design is the integration of regenerative agriculture into their supply chain. In conversation with Adam Carson, a Regenerative Agriculture Manager for Diageo, we explore the company’s pioneering initiatives, being developed with supply chain partners and local experts.

Carson’s journey into the realm of sustainability and agriculture began with a deep-rooted passion for the environment. With a degree in Environmental Management and subsequent PHD in Environmental Science, his professional trajectory took him through consultancy work in Ireland and the UK, focusing on water quality and rural land management, and a tenure at the Scottish Environment Protection Agency (SEPA). At SEPA, his journey intersected with forward-thinking farmers who were embracing regenerative agriculture. At Diageo, he brings his knowledge and passion together in one role.

Pioneering sustainability

At the heart of Diageo’s ethos lies a steadfast dedication to sustainability, anchored in its ‘Society 2030: Spirit of Progress’ ESG Action Plan. The plan targets key outcomes, including the promotion of responsible drinking and championing inclusion and diversity, as well as pioneering grain-to-glass sustainability.

“There is a theme of becoming sustainable by design and it’s within this area that our agricultural work sits. Here we have identified key sourcing regions globally and will develop programmes with local partners to improve sustainability and supply chain resilience”.

Diageo’s commitment transcends mere rhetoric though. Through groundbreaking regenerative agriculture programmes, such as the Guinness Regenerative Agriculture Programme and initiatives in the scotch whisky and agave supply chains, Diageo is redefining the relationship between its products and the land.

“In both the scotch and agave programmes, the initial focus is on baselining to understand current production methods, how they perform from an environmental

perspective and how carbon intensive they are. On the agave programme, at our farm in Mexico, we are planning trials on cover crops and reduced tillage to understand if that landscape can deliver more for biodiversity and carbon. On the scotch whisky programme, we’re initially running a three-year project with two distinct elements, partnering with organisations such as SAC Consulting and Scottish Agronomy.

“The first element of the scotch programme has already commissioned research trials to look at cover crops as an important part of a regenerative agriculture system. We’re reviewing ways to integrate them into crop rotations and analyse their ability to improve soil structure and soil condition, but also their ability to fix nitrogen. We track that over time to see if we can subsequently reduce fertiliser applications on the following wheat or barley crops.”

“In the second element, we’ve recruited farmers into three farm clusters in Scotland. We’re connecting well-established farmers to the best science, to help them understand the carbon hotspots in their current production systems and then providing leading agronomy to address those issues. The farmers may trial new interventions as well as looking at neighbouring farms to learn what else works locally. This helps to give confidence to try something that maybe they wouldn’t

have tried before and supports the next step on their regenerative agriculture journey. We will deliver the scotch programme in close collaboration with our grain and malt suppliers and openly share any findings with the wider industry. “

From Scotland’s verdant fields to the sun-kissed agave plantations of Mexico, these programmes aim to enhance soil health, sequester carbon, and promote biodiversity, while empowering the farmers to adopt more sustainable practices. Through collaborative efforts with farmers and strategic partnerships, Diageo is addressing sustainability throughout its production process.

Carson also emphasises the importance of collaboration and knowledge-sharing in tackling complex environmental challenges and taking a partnership approach wherever possible. To that end, Diageo has engaged in successful initiatives like Landscape Enterprise Networks (LENs), which provides a marketplace to trade ecosystem services, fostering a direct and symbiotic relationship between demand and supply.

“The demand side are looking for outcomes from the landscape - for example, Diageo might want improved biodiversity outcomes, or cleaner water - and on the supply side, you’ve got farmers who can deliver those outcomes. The LENS mechanism is a way of linking that demand and supply side together and is currently operational in the UK and Europe.”

Innovation for the future

As he reflects on the future of the industry, Adam underscores the need for a holistic approach to sustainability. While carbon reduction is paramount, it mustn’t overshadow the importance of also considering biodiversity, water quality, or natural capital, more generally.

“Historically a lot of innovation has focused on driving up yields, and in the main, these have now plateaued. Innovation now needs to focus on the parts of our production system that have the biggest impacts on the environment – whether that be developing more environmentally friendly fertilisers or crop varieties that perform well in lower input systems. Additionally, systems that monitor changes in the environment will be key, these are needed to ensure improvements in the environment are real and lasting. These technologies need to deliver at scale to be compatible with a supply chain like Diageo’s. Yields and profitable returns are important, as is carbon reduction in the bigger sustainability picture, but for Diageo it’s also about nurturing ecosystems, fostering resilience, and leaving a legacy of sustainability for generations to come.”

By working together with the land, the businesses and the people that depend on it, Diageo is sowing the seeds of a legacy of sustainable partnership today, to build business and community resilience.

A South East Perspective

Navigating the changing landscape: The farmer’s role in climate action

DONALD DUNBAR , PRINCIPAL CONSULTANT | SAC CONSULTING

If truth be told I am a compulsive roadside farmer and recently on a trip south to London I got the chance to do a bit of high-speed trackside farming from the train. As I looked at the fields what struck me the most was the fact they show the scars of late sowing with backward crops, large bare patches, and vast areas of standing water from the many weeks of rain. The question is, is this the effects of climate change or just a spell of bad weather?

I am of the belief we are seeing first hand the impacts of climate change and have been for some time. I also believe there is now, for the first time, large swathes of farmers and growers of the same opinion. Compare this to a decade ago and most of them would have put it down to a ‘bad spell’. So, what’s changed?

Personally, I think we are seeing the phenomenon of the “movable middle” changing their position. You are not going to change the staunch believers and sceptics on

either side, but you can influence those on the middle ground and it’s clear there is a shift towards more and more people believing in climate change.

Prior to COP26, discussions around greenhouse gases and carbon footprints were met with, at best, lukewarm interest. Up until then farming clients had little interest in where greenhouse gases occurred in their farming system or how and why they should reduce their carbon footprint. Initiatives like the Beef Efficiency Scheme got the ball rolling on carbon auditing and the Farming for a Better Climate started the conversations that have led to better awareness, but enthusiasm lacked.

Post COP26, a surge of farmers began seeking carbon audits, signalling a tangible shift in mindset. So, what has changed? Well, the Scottish Government dangling a financial carrot of support for one. However, we have also seen the private sector driving the change and adapting

their supply chains accordingly to lower their carbon footprint through the inputs they purchase from others.

I agree that there is an ever-present threat of “green washing”, and this further emphasises the importance of our farmers backing science-backed decisions rather than PR driven ones. The recent COP28 was also a turning point and signalled a “fossil fuel phase out”.

Farmers must transition from viewing themselves as part of the problem, and instead recognise and embrace the fact they are a key part of the solution. They need to find their voice and take the opportunity to remind the public of the amazing job they do in providing fresh, local, and safe food. In doing so they are contributing changing the position of the ‘movable middle’.

As for the year ahead, the standing water will drain, fields will dry out and new crops will be sown. Farmers are a resilient bunch, but they need to build that same resilience into their business plan, protecting it for the future. Resilience to climate change, resilience to policy change, resilience to market volatility through collaboration innovation and diversification.

At SAC Consulting, we stand committed to walking every step of this transformative journey with farmers, and we welcome you to reach out to our consultants to see how we can support you and your business.

Get in touch

donald.dunbar@sac.co.uk

The power of data sharing

DAVID BELL, SENIOR CONSULTANT, LIVESTOCK | SAC

CONSULTING

We now live in an era where data-driven decisions are dominating the livestock industry. Previously decisions would have been based on a ‘gut feeling’, all backed up by years of traditional stockmanship and intuition. However, in today’s world and in the face of several significant challenges, not least a skilled labour shortage, farmers are using data to optimise their farm management and maximise the opportunity for profit.

Livestock agriculture is no longer solely about the management of stock. It now also involves the management of data. The workforce of today now need to be equipped with the skills in interrogating data and interpreting it alongside what is seen on the ground. An example of this is with some oestrus detection technology where the data from the various algorithms may indicate that an animal is in oestrus when in fact the animal has increased activity from the previous days due to being allowed out to graze after winter housing.

In recent years, there has been a significant increase in the availability of innovative technologies, all aspiring to be the next revolutionary thing in the livestock industry, and all designed to address the on-farm challenges, including health and fertility. This leaves us at a pivotal

moment in time, where both technological advancements and a culture shift of data sharing amongst farmers is essential for the success of the industry.

However, we need to be careful when creating the latest ‘technological tools’, and the emphasis needs to be on the end user. There is no question that all of us now have the capability to produce an enormous amount of data, but for farmers this data needs to be easily interpreted and produce information quickly.

Despite a relatively widespread adoption and keenness to adopt technology in agriculture, there still appears to be a hesitation to share information beyond individual farms. Perhaps this is because of worries around financial repercussions, including fears of processors and retailers adjusting payments based on the production costs.

However, all of this hinders the sharing of crucial information that could and will benefit the industry as a whole.

For example, a store cattle producer wants to sell some stock but is concerned about the potential scrutiny that comes with making treatment records available.

However, we need to be careful when creating the latest ‘technological tools’, and the emphasis needs to be on the end user. “ ”

This could be causing concern over what price the livestock will sell for, if it sells at all, as well as the reputational damage. Yet the flip side of this is the opportunities it presents for people making informed decisions, as well as the potential efficiency savings down the supply chain.

To put this into a more familiar context, data sharing can be compared to the purchase of a second-hand car. It’s unlikely that anyone would buy a car without first knowing its service history, yet in such a vital industry such as livestock industry we seem prepared to take the risk?

We have an opportunity for data sharing to happen as a matter of routine through integration with everyday technology. Looking ahead, one such opportunity lies

with the potential compulsory introduction of electronic identification (EID) of cattle. This could not only contain traceability information but also the complete history of the cattle that would transfer with the animal. Furthermore, it would provide opportunities for the cattle industry to showcase its reduction in antibiotic usage through background collation.

However, here also lies another issue for the industry –trust. There needs to be a level in trust in the information that is being received from one producer to another. The level of trust will only increase if producers can truly believe that the information received is valid and reliable.

Some of this may seem like a very idealistic concept developed in an ivory tower of perfection but the future success of the industry relies on the breakdown of these barriers and focus on how farmers can work together in the interests of the livestock sector rather than as individual businesses.

The call to action is clear; embrace data sharing as a catalyst for collective growth, in an effective and sustainable way.

Get in touch

david.bell@sac.co.uk

Nitrogen: The essential element

SASCHA GRIERSON , PRINCIPAL CONSULTANT | SAC CONSULTING

Nitrogen is everywhere. We use it on all farms, in both inorganic and organic forms. It is critical for productivity, and for profitability, and is one of the essential building blocks of life.

Used well, it will deliver many on farm benefits. However, it is also a major pollutant and green house gas, and can be lost in agricultural systems. Excess nitrogen, when lost as ammonia, can cause air pollution, and pose a threat to human health. Excess nitrogen can also lead to nutrient leaching, biodiversity loss, acidification of soils, and affect our water systems. Addressing these challenges is not just an environmental imperative but a financial one, as the optimal use of nitrogen can save costs for farms.

In June 2023, the Scottish Government released experimental statistics from the Scottish Farm Business Survey, shedding light on greenhouse gas emissions and nitrogen usage on farms. This data has been a crucial step towards filling a data gap in the establishment of the Scottish Nitrogen Balance Sheet (SNBS) and reflects the government’s commitment to monitoring and improving nitrogen use efficiency (NUE).

It is important to understand why these statistics matter. Traditionally, the agricultural sector faced data gaps in nitrogen balance assessments. The new experimental statistics provide a farm-level perspective on NUE and allows for a more nuanced understanding of nitrogen

flows under different farming systems. This then enables the industry eventually to set benchmarks, identify outliers, and drive improvements.

This is of vital importance at an industry level, by providing invaluable insights and allowing for the development of NUE averages, it acknowledges the inherent differences between livestock and arable farms. The dataset therefore serves as a starting point for industry-wide progress. For example, outliers within the data can pinpoint areas for improvement, and facilitate targeted interventions, as well as knowledge exchange. Agriculture has been identified as having a large data gap in the SNBS, but with these statistics we are seeing the beginning of the process to fill that data gap.

As nitrogen losses face increasing legislative scrutiny, businesses must prepare for changes in farming systems to mitigate any environmental impacts. The economic and environmental sustainability of farms are intertwined, so by addressing the complexity of nitrogen usage we can support profitability. By showcasing the industry’s commitment to sustainability, the wider supply chain can attract more environmentally conscious consumers, paving the way for new and more robust markets.

The Scottish farming industry is navigating the nitrogen challenge and is taking proactive measures to address this. Balancing economic and environmental sustainability is not only a responsibility but can be a pathway to profitability. By continuing to leverage our available resources and embrace sustainable approaches, we are creating a more resilient and prosperous future for farming.

If you want to discuss this further, SAC Consulting offers a wide range of services to support resource management on farms. Please get in touch if you would like to know more or have any questions.

Get in touch

sascha.grierson@sac.co.uk

“ ” The Scottish farming industry is navigating the nitrogen challenge and is taking proactive measures to address this. Balancing economic and environmental sustainability is not only a responsibility but can be a pathway to profitability.

New testing partnership will boost soils and forage analysis

MALCOLM HOSIE , HEAD OF PHYSICAL SERVICES | SRUC

Many of our farmers tell us business efficiency and effectiveness are of the upmost importance. Yield and output gains are essential, now more than ever, so good soil health and forage nutrition are a big part of the right solution.

With this at the forefront of our minds, we recently took the decision to work with a leading lab provider to develop the future of testing and analysis in Scotland.

Through an exciting new partnership, Eurofins Agro UK will now be providing our laboratory services to create a fresh, more intensive focus on our soils and forages testing and analysis. SAC Consulting will remain the ‘front door’ to this service and will take up the position of sole Scottish customer to the Eurofins lab.

Eurofins are already well known in the bio-analytical testing world. They were founded in France in 1987, at that time focusing on the analysis of wine. Globally, they now boast over 900 laboratories providing services for the testing of food, environment, pharmaceuticals, and material science.

In the case of their Agro section, which is responsible for soils and forage testing, they have a network of

laboratories across Europe and a notable well-established collaboration with the University of Wageningen in the Netherlands; one of Europe’s leading agri-food institutions.

Why have we done this?

They share our mission to deliver quality, seek innovation and deliver value to the customer.

The demand for agricultural data from testing is increasing. Working together with Eurofins boosts SRUC’s testing and analysis capabilities and enriches our current service provision by giving us access to every service Eurofins has to offer. We were already doing great work in this area, but this new partnership gives us an injection of additional expertise and the support of a soil and forage testing network that stretches across many other countries. The relationship offers us faster and more sustainable growth than if we had continued to operate on our own.

This month, we welcomed a group of Eurofins product specialists, technical experts, and scientists from all over Europe to Edinburgh. They met with some of our consultants in the fields of PCN (Potato Cyst Nematodes), soils, feed and forage, and organic waste. The aim was to start the process of knowledge sharing between partners and begin building the all-important relationships across our teams. Allowing our expert insight into industry challenges and opportunities here in Scotland to begin combining with the fantastic service delivery opportunities that Eurofins can deliver. This exchange will act as the catalyst for the introduction of new product and service development through SAC Consulting. It’s an event that we hope to frequently replicate as the relationship develops.

What are our hopes for this partnership and what does it mean for our customer?

Whether it be routine soils, nematode testing, or forage analysis for livestock, we want to make it easier and faster for soil and forage samples to be taken, submitted, and

“

By leading the industry, rather than following it, this puts our farmers in a stronger position by continuing to maximise the value of the testing and analysis.

”

tested. Of course, we are strengthening the trusted, existing tests that provide so many customers with the data they need. We also want to harness the power of the partnership by offering industry leading developments. For example, an app-based digital portal which supports end-to-end tracking of samples and gives users more choice in how they access their results. We are also focused on delivering refreshed and more comprehensive analysis reports.

Later this year, our current soils and forage labs shall move to a new home within the SRUC estate, where Eurofins will occupy the former Analytical Services building on the Bush Estate, near Penicuik. SRUC is currently undertaking extensive building and renovation works to ensure that, when occupied, Eurofins will have an optimal technical environment to provide us with a stand-alone soils and forage service that can grow and develop. It’s a hugely exciting project to be part of and sets the scene for a very bright and productive future.

Ultimately, we want SAC Consulting’s provision of soils and forage analysis to lead the way and work as hard as it possibly can for our farmers. The way we shall achieve

this is by blending the service provision of a leading laboratory provider, with our network of existing high quality and respected agricultural advisory services.

Working in Scotland, to benefit Scotland, is still our priority. By leading the industry rather than following it, this puts our farmers in a stronger position by continuing to maximise the value of the testing and analysis. There is hard work to be done but an exciting future lies ahead as we strive to achieve optimum soil health and forage nutrition.

Using a trusted provider for any type of analysis allows growers to make informed decisions for their business - whether that be which fertiliser to apply, which variety to grow or to verify if any changes in management have resulted in the right outcome. By measuring and managing through analysis, yields can be optimised, and inputs minimised to increase efficiency and improve financial returns.

mhosie@sruc.ac.uk

Kirsty Carnegy

PRINCIPAL CONSULTANT & FOOD AND ENTERPRISE TEAM LEADER

Expertise and skills:

• Scottish and UK F&D industry

• F&D supply chains and retail

• F&D drink manufacturing systems and efficiencies

• Commercialisation

• Sustainable scaling and value add opportunities

What was your career journey into this role?

I’ve worked across a broad spectrum of industry. Before joining SAC Consulting, I was a buyer for a convenience retailer operating nearly 200 stores across the UK. The role involved opportunity focussed buying, particularly local sourcing. The role also saw me working on initiatives to deliver a point of difference in stores – working with industry leaders and local suppliers to land quick turnaround projects like garden centres, butchers counters and meal solutions.

Prior to this I was the general manager at a start-up fish smokehouse, where I had to navigate the challenges involved in running a quickly scaling business – I wore many hats, from getting stuck into production, all the way through to international sales in places like Dubai and Canada.

Previous roles include working for industry body Scotland Food & Drink, focussing on export, innovation & productivity as well as a business development role for Orkney based, Stockan’s Oatcakes.

Tell us about your job and your ambition for the role in 2024

As Team Leader for our Food & Enterprise Team, I support my team to deliver great work and realise upcoming opportunities across the whole food and drink value chain. We work in conjunction with colleagues in the Environment team, providing a whole Food & Footprint offer which delivers a range of end-to-end supply chain management for our customers.

Furthermore, I am working to develop my consultancy offer around areas of my expertise, including sustainable sourcing and manufacturing, retail, supplier accreditation schemes and end-to-end supply chains.

If you could do anyone else’s job in consulting, who would it be?

I’d like to be part of the agricultural advisory team – they are out on site, delivering practical consultancy through assessing the land and applying their expertise. The fresh air and quick results from their inputs must be rewarding, as well as their close relationships with farmers and landowners.

If you had one wish, to be used to better the food and drink industry, what would you wish for?

My wish would be to see a mandatory focus on food and drink and the associated supply chain as part of the curriculum, beginning as soon as children start nursery. There is a fundamental lack of understanding food, its origins and the significant ramifications across health, the environment and economy it can hold. Providing early-stage education would empower children to engage more proactively and make more informed choices about their health and the environment around them. It will also provide a better understanding of the multitude of brilliant career options available, with almost all disciplines and areas of interest being relevant.

Staff Spotlight

Sterre Vester

FOOD AND ENTERPRISE CONSULTANT

Expertise and skills:

• Primary data collection

• Systems visualisations

• Qualitative and quantitative data analysis

• Team-based research

• Distributional dilemmas and eco-social policy

What was your career journey into this role?

Not long after starting my Ecological Economics degree, I became aware of SAC Consulting and the Food and Footprint team. I was instantly intrigued about Scotland’s agricultural landscape and the role that I could play within it through consultancy.

Prior to moving to Edinburgh, I completed my undergrad in International Relations in The Hague. Following that, I briefly worked within Dutch politics before moving to Berlin and working in hospitality and food logistics. It was during this phase in my career that my passion for production systems, consumer decision-making, environmental activism, and rural-urban dynamics, really started to shape itself.

Having observed farming debates in the Netherlands closely over the past few years, it has been thought-provoking to compare agricultural practices and political decisionmaking between the Netherlands and Scotland. I hope I can bring some of these insights to the work I will be doing in relation to net-zero and Scotland’s just transition.

Tell us about your job and your ambition for the role in 2024

I focus on addressing the challenge of what food sustainability looks like in Scotland all the way down the supply chain - from the primary producer to the consumer. To match the needs of all consumers, producers, and providers in Scotland, we will need to transform the food system to be both compliant with environmental limits while providing social benefits.

This involves advising clients on the trade-offs and implications of their business decisions, as well modelling economic outlook and visualizing environmental outcomes backed by independent data.

In 2024, my goal is to understand the key influences in Scotland’s agri-food system that can improve affordability and accessibility of healthy, high quality produce, alongside regenerative agricultural practices that support rural livelihoods. I plan to achieve this by engaging with stakeholders throughout the supply chains, gaining insights into their work, and using this information to develop comprehensive mitigation strategies.

If you could do anyone else’s job in consulting, who would it be?

If I had the opportunity, I’d choose Osla Jamwal-Fraser’s role as an agricultural consultant on Shetland. It seems amazing to have such an abundance of place-based knowledge the way she does, and be embedded in the daily agricultural realities of an island community when going about your work as a consultant. Sadly, I have not yet had the chance to travel up to Shetland but would be excited for Osla to show me around if I do!

If you had one wish, to be used to better the food and drink industry, what would you wish for?

It would be to create and live in a world where land use decisions aren’t dominated by the need to make a profit. While it is essential that everyone receives a decent wage, the way of conducting agriculture and providing food have exhausted natural habitats. It is imperative we do not marginalise rural communities when devising solutions to this problem. However, I believe there is a sweet spot when it comes to producing high-quality food and protecting the soil under our feet, and we should keep incentivising and rewarding those methods!

Get in touch

sterre.vester@sac.co.uk

SAC Consulting Offices

Ayr

01292 525252

ayr@sac.co.uk

Balivanich

01870 602336

balivanich@sac.co.uk

Campbeltown 01586 552502

campbeltown@sac.co.uk

Cupar

01334 654055 cupar@sac.co.uk

Dumfries

01387 261172

dumfries@sac.co.uk

Edinburgh

0131 603 7520

edinburgh@sac.co.uk

Elgin 01343 548787 elgin@sac.co.uk

Forfar

01307 464033 forfar@sac.co.uk

Inverness

01463 233266

inverness@sac.co.uk

Kendal

01539 769059 kendal@sac.co.uk

Kirkwall 01856 872698 kirkwall@sac.co.uk

Lanark

01555 662562

lanark@sac.co.uk

Lerwick

01595 693520 lerwick@sac.co.uk

Oban

01631 563093 oban@sac.co.uk

Perth 01738 636611 perth@sac.co.uk

Portree

01478 612993

portree@sac.co.uk

St Boswells

01835 823322

stboswells@sac.co.uk

Stirling

01786 450964 stirling@sac.co.uk

Stonehaven

01569 762305

stonehaven@sac.co.uk

Stornoway

01851 703103 stornoway@sac.co.uk

Stranraer

01776 702649 stranraer@sac.co.uk

Thainstone

01467 625385 thainstone@sac.co.uk

Thurso

01847 892602 thurso@sac.co.uk

Turriff

01888 563333

turriff@sac.co.uk