Decision time as farmers face concentration of buying power

increased concentration of buying power for their products.

Obviously, one way of countering that threat is to set about creating

fewer, stronger sellers through a collective approach to marketing.

Another is for producers to make sure that they supply, regularly and

consistently, precisely what food buyers look for nowadays in terms of

quality and other assurance guarantees.

Fortunately, Scotland has managed to keep one step ahead of its

competitors thanks to the pioneering farm assurance schemes and current

moves to establish a single quality market for Scottish food and drink

products.

But much still has to be done to persuade even more farmers,

processors, and retailers to back these initiatives wholeheartedly -- in

their own interests, if nothing else.

The need for concerted action becomes even more imperative if farmers

pause to consider the rapid changes taking place in the whole structure

of the food market -- from the break-up of the long-established

marketing boards for milk and potatoes to the loss of the only

independent Scottish supermarket group, about which much has already

been said and written.

Incidentally, the column inches and editorial comment devoted to the

Wm Low takeover in the past week or two (particularly the possible

threat to Scottish suppliers), says much for the efforts the industry

has been making to heighten its already solid reputation for quality --

and the impact this has had on the public.

But sentiment, and high marks for effort, on their own count for

nothing in the retail jungle out there.

Mr Andrew Howie, chairman-designate of Scottish Milk (the successor to

the Scottish Milk Marketing Board), has said that farmers' loyalty is no

thicker than a 10 pence piece. No doubt much the same is true of

hard-nosed supermarket buyers and today's discerning consumer.

So primary producers would do well to listen to the advice of their

leaders.

Mr John Ross, president of the Scottish National Farmers' Union, urges

a positive approach to the changes in the retail sector, which he

believes could open up wider outlets for Scottish produce. However, he

acknowledges that producers must strengthen their own clout in the

market place, so far as that is possible in a fragmented industry like

agriculture.

A similar message comes from Mr Edward Rainy Brown, chief executive of

Scotland's farm and rural co-operative organisation, SAOS.

He emphasises that the ''Scottish Quality'' opportunity is a real one

and that there is no need to be despondent about the future -- provided

farmers succeed in consolidating and expanding their marketing base by

further co-operation and structural adjustment to their businesses.

Equally important, I would have thought, is for producers to realise

that if the collective approach is to succeed, then a good starting

point would be to give their total loyalty to the many already sound

co-ops and marketing groups already operating on the ground.

It is easy to support the local co-operative when the going gets

tough, much harder to stick with its disciplines in a ''fair weather''

market.

The history of group marketing in agriculture is littered with

examples of farmers turning their backs on their co-ops when they see

the opportunity to make a quick killing elsewhere.

Full marks to the farmers and business community in the West Highlands

for the way they persevered, sometimes against fierce opposition, in

raising the new #1m Oban mart from the ashes of the old. But the hard

part begins now. The loyalty of local livestock producers to this

co-operative venture will be tested. Rival operators will not sit back

content to offer only token competition.

The dedication and determination that has secured the new Oban

Livestock Centre (to give it its posh name) should serve as an example

to all those dairy farmers and potato growers still swithering about

where their loyalty lies in the uncertain future facing these two key

sectors of Scottish agriculture.

Both the milk boards, and the Potato Marketing Board, are victims of

doctrinaire Government policies, as well as other industry interests

which can see advantages in weakening the producers' bargaining

position. However, it also has to be said that some farmers have been

only too eager to do down their own organisations.

For those who have yet to commit themselves, decision time has

arrived. De-regulation of the milk market is now less than three months

away, and we are told that so far 1851 producers have signed up to

supply their own co-op, Scottish Milk. But that still leaves up to 400,

some of whom have contracted with private dairies while others have

still to make up their minds.

Sales of milk on behalf of the co-op's members got off to a good start

last week, and in Mr Howie's words producers must realise ''they may

never have another opportunity to join and run their own strong

organisation'' able to negotiate on their behalf from a position of

collective strength.

In the case of the potato marketing scheme and the PMB, their

opponents have mounted a vigorous campaign to have the whole shooting

match wound up immediately -- rather than continuing with the three-year

orderly transition to a free market, proposed by the Government and

backed by most industry leaders.

The issue will now be decided by a poll of registered growers, with

Friday of this week the last day for returning voting papers. Is it too

much to hope that -- whatever decision is taken in the ballot -- it will

be based on what is in the best interests of a major segment of the

British food industry, rather than narrow sectoral self-interest?

Surely the lesson should be clear by now that a weak and fragmented

market for any food commodity plays into the hands of our competitors.

Which is why they've long envied the UK marketing structure and vowed to

weaken it at any and every opportunity.