Farmers fear losing supermarket shelf space as the government considers price controls on everyday food
Scottish farmers could lose valuable supermarket shelf space to cheaper imports if proposed food price caps go ahead, NFU Scotland has warned, despite encouraging figures showing strong support for domestic produce.
The union's latest ShelfWatch audit found that 26% of own-label products surveyed across major supermarkets were sourced from Scotland, rising to 89% when produce from elsewhere in Britain was included.
Published on Tuesday 27 October, the findings are based on an examination of more than 20,000 products across 73 stores operated by eight major supermarket chains.
NFU Scotland welcomed the results but warned that government plans to introduce price caps on essential foods could undermine domestic producers.
The latest audit found improvements in Scottish sourcing across all eight retailers, with Aldi and Lidl recording particularly strong results.
Aldi topped the survey, with 68% of its own-label products sourced from Scotland, followed by Lidl at 51%.
Co-op and Marks & Spencer both recorded Scottish sourcing levels of approximately 30%, while Tesco reached 23%.
Scottish sourcing also improved in several food categories, including chicken, fresh pork, vegetables and soft fruit, while milk and eggs continued to show particularly strong domestic supply.
The findings suggest encouraging support for Scottish produce, although the union cautioned against making direct comparisons with previous audits.
The latest figure of 26% compares with 19% recorded at the same point last year, but changes to the ShelfWatch methodology limit year-on-year comparisons.
Its previous annual report, published in February 2026, also recorded Scottish sourcing at 26%, although it covered a different audit period and sample.
The figures represent products examined during the audit rather than the proportion of supermarket sales or spending going directly to Scottish producers.
Despite the positive findings, NFU Scotland expressed concern about proposed government controls on supermarket food prices.
The Scottish Government is consulting on legal price caps for selected essential groceries, including bread, milk and eggs, in an effort to make food more affordable.
However, the union fears the measures could encourage retailers to purchase cheaper imported products rather than food produced by Scottish farmers.
It warned that supermarkets might seek to protect their margins by reducing purchasing costs, potentially passing financial pressure through processors and suppliers to primary producers.
NFU Scotland president Andrew Connon welcomed the sourcing figures but warned against assuming the progress would continue.
"But this progress cannot be taken for granted," he said.
Mr Connon raised concerns that price caps could make imported food more commercially attractive, putting Scottish farmers at risk of losing valuable supermarket markets.
He also stressed the importance of maintaining viable agricultural businesses and securing fair returns for producers.
The union believes retailers have a responsibility to support domestic supply chains, particularly when farmers face rising production costs and volatile agricultural markets.
Concerns about the proposed price controls extend beyond farming.
In August, 23 business and trade organisations jointly urged First Minister John Swinney to abandon plans for statutory food price caps.
The signatories included NFU Scotland, the Scottish Retail Consortium, Food and Drink Federation Scotland, Dairy UK and Scottish Bakers.
Their joint letter described the proposed statutory price cap as "unnecessary, ineffective, and likely to deliver significant adverse consequences".
The organisations argued that limiting retail prices would not address underlying production costs, including energy, fertiliser, fuel and employment expenses.
They warned that restrictions could instead squeeze suppliers, disrupt food supply chains and potentially lead to higher prices for other household products.
Scottish Retail Consortium director David Lonsdale was among those supporting the intervention, alongside NFU Scotland president Andrew Connon.
However, the Scottish Government maintains that action is needed to help households struggling with grocery bills.
Business minister Tom Arthur has previously said rising living costs are making it difficult for many families to afford their weekly shopping.
Ministers say the aim is to improve access to affordable, nutritious food while supporting a competitive and sustainable food industry.
The government's consultation acknowledges that price caps could have unintended consequences for farmers, processors and retailers.
It is seeking evidence on how any future scheme could protect primary producers, maintain domestic food production and avoid increasing reliance on imports.
No price caps have yet been introduced, with the consultation remaining open until 24 November 2026.
NFU Scotland is urging policymakers to consider the potential consequences for farming businesses before proceeding.
The union also raised concerns about competition from imported food produced under different standards.
Scottish farmers must meet requirements covering animal welfare, environmental protection and food safety, which can influence production costs.
The union believes domestic producers should not be disadvantaged when competing against cheaper imports produced to different standards.
Country-of-origin labelling remains another concern, with NFU Scotland calling for clearer information to help shoppers identify Scottish food.
It also wants greater transparency across restaurants, hotels and catering businesses, where the origins of ingredients can be less readily available than in supermarkets.
The union argues that strong domestic sourcing supports rural employment, food processing and long-term supply chain resilience, as well as individual farming businesses.
These issues are expected to feature at NFU Scotland's forthcoming Autumn Conference, where the future of domestic food production will be a central theme.
Although the latest ShelfWatch findings highlight continued retailer support for Scottish produce, the union believes maintaining that progress will depend on fair returns for farmers and consistent purchasing commitments.
With proposed price caps still under consultation, NFU Scotland is warning that efforts to make groceries more affordable must not come at the expense of the businesses producing them.