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Chamber and committees

Rural Affairs and Environment Committee, 09 Sep 2008

Meeting date: Tuesday, September 9, 2008


Contents


Food Policy

The Convener:

Item 5 is a round-table evidence session on food policy. We have decided to have a round-table discussion because we want to pick the witnesses' brains, get a conversation going about this issue and ensure that we get as much input as possible at this stage to help us to develop a remit for a full-scale inquiry.

For that reason, today's conversation will be fairly open and free flowing. No topic is being ruled in or out. I have asked committee members to break what are, for politicians, the habits of a lifetime and not to hog the conversation. However, they will obviously join the debate at certain points, ask some questions or try to move the conversation on to a slightly different issue.

Basically, I am trying to encourage a cross-flow. For example, if a witness wants to ask another witness a question, that will not be a problem. That said, we must try to avoid having too many voices speaking at the same time. However relaxed we might want the conversation to be, it cannot become a babble; after all, it is being recorded and if too many people speak at the same time the official report and the sound system go into meltdown. I simply remind everyone that it is not 11 pm in your living room; it is a committee meeting. However, within those constraints, we want things to be as free as possible.

This first session will run to about 12.45, which means that we have lots of time. We will see how things go, but we might have a brief five-minute break if people feel the need to go elsewhere. The second session will run from 1.45 to about 3.40. Those who take part this morning are welcome to stay and listen to this afternoon's discussion; we had to divide the item into two sessions simply because we do not have enough space for everyone around the table and, in any case, if we have too many people, things become unmanageable.

I ask the witnesses to take a minute each to introduce themselves and to highlight the one issue that they want the committee to take away from this meeting. I realise that I am putting you all on the spot. Unfortunately for Carey Coombs, he is the first witness and therefore has the least notice.

Carey Coombs:

Good morning and thank you very much for this opportunity to give evidence. First, I should clarify whom I represent, because I suspect that my submission might have been slightly unclear about that. For the past three months I have been a part-time senior land use policy officer for the Royal Society for the Protection of Birds; I spend the rest of my time at home on a tenanted farm in South Lanarkshire. I used to be a policy manager for the Soil Association, but I no longer have any formal contact with it.

If you know that I work for the RSPB and that I am a farmer, it might be obvious that the message that I want to emphasise is that environmental issues and farming are and must be compatible. I see no incompatibility in that respect: indeed, I believe that compatibility can only become more important.

Sally Crystal (Scottish Association of Farmers Markets):

I am chair of the Scottish Association of Farmers Markets and I thank the committee for inviting me to the meeting.

Perhaps we can take all the thanks for granted.

Sally Crystal:

I want to put across our concerns about regulation with regard to abattoirs—or their lack—and about the future of local food being sold at farmers markets.

I skip over Alasdair Morgan, who is a committee member.

Michael Gibson (Macbeth's):

My credentials are in my submission, but I hope that I transcend policy and food production. The most important single issue is that we implement what began as a good, innovative and cross-cutting proposal and that we persuade participants in the food industry to bury their current positions in order to put something together that is truly collaborative and in Scotland's interests.

I skip over Peter Peacock, another committee member.

Dr Karen Smyth (Scottish Rural Property and Business Association):

The one issue that I want to be considered is increasing competition. That large area would include, for example, labelling, reopening the debate on genetic modification, regulation and the procurement process.

I move to James Withers, who is representing the National Farmers Union Scotland instead of Jim McLaren.

James Withers (National Farmers Union Scotland):

Jim sends his apologies.

That is okay.

James Withers:

I am chief executive of the NFUS. The union has about 9,000 members who are mostly full-time farmers; indeed, we represent about two thirds of Scotland's full-time farmers.

The most important issue is ensuring that we maintain Scotland's food production capacity. At the moment, there is a significant decline, most notably in the livestock sector. Unless we halt that and secure the future of food production, anything else that we want to do about food policy will be meaningless.

Professor Phil Thomas:

I suppose that the best introduction that I can give is to say that I am an ageing academic. I represent myself, although I should mention that I am chairman of the Scottish Salmon Producers Organisation, a member of the board of Quality Meat Scotland and a member of the board of Scottish Natural Heritage. I also serve on the Scottish advisory group for Linking Environment and Farming. I have other links to the industry that I will set aside.

My plea is that the Parliament and Government recognise that food policy is absolutely central to food supply and to associated socioeconomic impacts. Any issues and problems that might arise cannot be addressed simply by legislation and regulation; instead, such legislation and regulation must be put into a market context, which I realise is a demanding and innovative approach for politicians. There must be an air of realism about the priorities that the committee decides on.

The Convener:

Des McNulty, who is sitting next to Professor Thomas, is a committee member. On my left is John Scott, who is the deputy convener of the committee, and I am Roseanna Cunningham, the committee convener. I think that I have met a number of the witnesses on a number of different occasions.

Let us press on with the discussion. I ask John Scott to kick things off.

Thank you, convener.

I should say that he does not really mean that; he is kicking me under the table.

John Scott:

Is the concept of local food an important one? Various witnesses—James Withers, for example—have already highlighted the paramount importance of food security and the need to ensure future production in Scotland's hills and upland areas. What part does local food play in the food supply chain? Is there a need for more collaboration? I will keep away from the subject of food miles, but is local food important in reducing carbon footprints?

Please kick off the discussion in any way you see fit. For example, there is a huge debate about biofuels—[Interruption.] My convener is telling me, "Enough." The subject is dear to my heart and, once I have started, I could happily go on for a very long time. However, I will stop and let someone else come in on the subject of local food.

That was fairly wide ranging. Does anyone want to pick up the cudgel to start with?

Sally Crystal:

It is well documented that farmers markets are very successful and here to stay. Most of our organisers say that the markets are holding up in the current climate. The public are going to farmers markets, especially if they are nearby, because of carbon footprint concerns.

We are being encouraged to increase the number of farmers markets, but we have one major problem: increasing the number of food producers to service the markets. At the moment, we have got it about right. However, if we begin to increase the frequency of farmers markets so that they run weekly, I am afraid that we will find that we have not got it right for meat producers, because of a lack of abattoir facilities and the fact that home kills on a small scale are now very pressurised.

There are major problems to overcome if we are to keep the efficiency, quality and supply from meat producers going at farmers markets. SAFM is keen to increase the frequency of farmers markets because they are one way of supplying local food directly to the public, and an ideal way of helping farmers to sell their livestock at a bigger margin and therefore make more profit to help their farming enterprise.

Carey Coombs, you had a lot to say about local food in your submission. Do you want to pick up on any of those issues?

Carey Coombs:

I will expand on my submission. Part of the problem with the food system is a kind of disconnect. The importance of local food lies in understanding where food comes from and how it is produced. We are coming up with solutions in relation to food quality such as ear tagging, assurance schemes and other things, but those are possibly less necessary if there is a deeper understanding, and less distance, between producer and consumer.

That understanding—which is connected to education—is important. The key to sustainability is diversity of farm type and farm produce, and wild diversity, which go hand in hand. There is a cultural and social dimension as well as a biological diversity, and that comes together in local understanding.

I know that some farmers are quite scathing about farmers markets. It has been suggested to me that if we all had to use them, it would put us back to medieval practices. Does NFU Scotland have a particular take on that?

James Withers:

If there have been criticisms of farmers markets, it is because they have been held up—by the Government, more than by anyone involved in the farmers markets movement—as the answer to farming's prayers, much as organic food, diversification and the development of farm shops have been. For a farmer whose farm is halfway up a hill in the middle of north-west Scotland, a farmers market is not necessarily an option, and nor is turning the barn into a bed and breakfast.

Why is the option not there?

James Withers:

Having a farm shop, for example, is not an option, because there are more sheep passing the end of the farm road than people. Those farms are not on a tourist trail—the option is not there for everyone.

Leaving aside the idea of a farm shop, what about the market concept?

James Withers:

The farmers market concept?

Why would a market not help the farmers that you are talking about?

James Withers:

They could be in the depths of Sutherland, some distance away from a town centre that draws enough people for a farmers market. The other issue is that where there is the option of holding a farmers market, there are issues surrounding abattoir and kill capacity, and the restructuring of that process—one of Sally Crystal's points—to make it work.

Professor Thomas:

It might sound ironic, but local food is a global problem. We are in a situation in which the world's food supply, relative to population growth, is diminishing. The United Kingdom will always be able to buy its food on the world market at the right price, and prices will go up, but in countries where food is short there will be population movements, unrest and so on, and we will have to pick up those problems too.

Nationally, everyone has bought into the notion that we should all contribute to dealing with climate change and global warming. However, I would argue that we should all contribute to world food production; local food is, in essence, part of that. We should deliberately try to produce enough food not only to sustain ourselves, but to export to others. Local food is a specific issue that is related to a wider problem.

Would you be part of the group that would call for more land to be turned over to—or put into—food production?

Professor Thomas:

I would argue for more land to be put into food production, but there is a limit to the amount of available land. Globally, the amount of available land is reducing because of water shortages and the impact of climate change, and we do not want to chop down forests elsewhere. There is a problem with regard to the Scottish situation, because there are some land areas in Scotland that have historically been farmed from which people are walking away because the farming has become unsustainable. That is a problem for Scotland—we need to maintain the focus of farming and food production in rural areas where, frankly, there is not a lot else that can be done to maintain an economic and viable sustainability.

This is a hugely loaded question, but do you believe that we should continue to subsidise that sector?

Professor Thomas:

The answer is yes.

Yes? That is fine.

Michael Gibson:

It is important, in a Scottish context, to consider what we mean by local food. In Scotland, we should think about the whole ambit. It is important that we include, for example, sea fish, game, vegetables and processed products that we make locally; it is not just about red meat. It is important to recognise that we have the capacity to produce food, but we need access to processing and distribution to reach our markets.

We need to develop the market. Farmers markets are very important, but they are a small part of the total and they are location specific and likely to remain that way. In developing the market, we need to consider the role that multiple retailers play. For example, the large stores might, as part of their planning conditions, be required to provide space for local food, as is done elsewhere in Europe.

The tourism influence is important, and work should be done on encouraging the tourism industry in Scotland to procure locally. There is also the government aspect, in relation to public procurement in its widest form, which can be used to develop local markets. We need access to processing and distribution. The system is currently very centralised and, although there is a particular problem with creating abattoirs, that does not mean that other processing cannot be done locally. We need good effective distribution—there are good examples, such as in Skye. Those are the important things with regard to local food.

Dr Smyth:

As an organisation, the SRPBA represents landowners and farmers. We obviously support local food production. It is important not only for the farming economy, but for sustaining rural communities that might not survive if farming did not remain in the area. The issue is often price. That is often the reason why local production is declining. As James Withers said, there are also problems in the hill sheep and livestock sector.

I support Phil Thomas's statement. The SRPBA believes that Scotland has an important role to play as a part of Europe in contributing to food security. We need to maintain and increase food production.

Professor Thomas:

Michael Gibson mentioned sea fish. If we consider the economic value of the various sectors of food production in Scotland, beef comes top of the list at about £450 million and aquaculture is next at about £400 million. From memory, the sea fish sector is worth about £370 million. The sheep sector is worth £135 million and the pig sector is worth about half of that. Aquaculture, as distinct from fishing, is an important part of the Scottish food system.

You are warning us not to become too focused on land-based food production.

Professor Thomas:

Yes. Aquaculture is the single biggest element of Scottish food exports.

John Scott:

I think that Professor Thomas and Karen Smyth, in particular, are agreed in their comments. The recent report by the Scottish Agricultural College and the NFUS states that desertification is taking place, at least in hill and upland areas, with the huge decline in the number of sheep and cattle. The other things that you talked about are inherently static at the moment. The quantum shift is in livestock production, given the factors that you mentioned. Does anyone want to comment on the potential for desertification?

Professor Thomas:

I was about to say that there are a lot of good comments and insights in the Royal Society of Edinburgh report that was published yesterday or the day before. The report is well worth reading. Economic activity in hill and upland areas must be maintained. People say that agriculture has declined in importance and is no longer the bricks of the wall; I argue that, although it might not be the bricks, it is the cement. Agriculture is often the element that maintains the socioeconomic structures in an area. It ensures that there are enough people to keep the local shop and school going.

If an area is to be viable, it is important that enough economic activity is put into the upstream and downstream elements of industry, and agriculture is an important component of that. In policy terms, that makes Scotland distinctive from, for example, England. There are few areas of England in which the travelling distance to a town where work is available is great, but that is not the case in Scotland. Here, if someone cannot find work in their local rural area, they have to move out of the area. As James Withers said, their options are limited.

Carey Coombs:

There is huge concern about the depopulation of the uplands, but we must be careful not to assume that historic practice will necessarily be the best approach in the future. I speak as someone who has been a hill farmer in Argyll, so I know what the problems are. The hill farm that I farmed in Argyll was not best suited to running a large stock of sheep. That is not to say that sheep farming is not or will not be important, but we should have an open mind on the matter. There are historic reasons why we have a large sheep and cattle population.

On the other hand, I now work for the RSPB, which makes a strong case for supporting the maintenance of cattle, in particular, and sheep in the uplands. A lot of research has been done recently on the importance of maintaining pastoral systems and grazing livestock systems in the uplands. I just think that we should be careful. We need a vision for the future of the uplands. The farming community is conservative because it has to be so, and it needs time to adjust. The current depopulation is not appropriate, but things have to change slowly over time.

Michael Gibson:

A lot of cattle and sheep have been removed from the hills. That is largely because of the lack of confidence that has been expressed in the policy that has come forward. There is a question mark over how we might deal with the single farm payment beyond 2013 and the less favoured area support scheme is under scrutiny. Also, people have not been making a living from cattle and sheep. Those are some of the reasons for the decline.

It is important that cattle and sheep remain, because they provide the critical mass in many rural communities. In particular, cattle require a much greater infrastructure and they benefit the grazing habitats in certain areas. However, we must look beyond agriculture and consider how it sits in the wider rural economy, including its role in supporting tourism. During the foot-and-mouth crisis, a lot of places in Scotland were closed and people were frustrated that they could not go out for walks. We must reflect on the fact that the landscape that they enjoy is influenced by the grazed environment.

I take the point that we should not assume that historic practice is necessarily the way forward for the rural economy. We must consider other land uses that might make a contribution, such as wild game and aquaculture. Aquaculture has often led the way in local food processing, especially in outlying areas such as the Uists. Perhaps they can teach us a thing or two. We can learn from other sectors.

We must also spread our labour. Crofting, as a part-time use of land, is a forward-thinking approach. If we cannot sustain full-time labour units, we must consider how people can split their time between farming and aquaculture or other jobs.

James Withers:

There has been a fundamental shift in what happens in our remote areas. We do not necessarily need to go into the number of factors that brought about that shift, but the reality is that people and animals are going. We need to consider how the public money that is spent in rural areas is targeted. A significant chunk of money goes into rural areas, either in direct payments to farmers or through rural development funding. We could spend that money better without necessarily adding another lump of public money to the system.

The blunt economist's view is that market forces are operating and that the market should sort things out. Under that view, where people do not get a good price, they will leave, and that is the nature of things. However, as Phil Thomas said, agriculture is the foundation of rural areas. Social and environmental benefits are delivered throughout the country, for which the market will never pay. Those benefits have to be paid for, so political intervention is critical. A sensible starting point would be to consider the way in which we spend public money in rural areas at present.

We will come back to that point. After we hear from Peter Peacock, I will ask Carey Coombs to comment, because he commented on the rural development fund in his written submission.

Peter Peacock:

The discussion has already demonstrated the width of the issue and how difficult it is to grapple with. I want to focus on the policy question about local food, because I have not yet heard an answer to that. Perhaps I should declare that I am a great fan of local food. I like going to local farmers markets. I started doing that in continental Europe and I am glad that farmers markets are coming to Scotland in a big way. I am attracted by the emphasis on more local production and fewer food miles.

However, if we put that to one side for a moment, we could argue that local food is just a middle-class indulgence for people like me who like to go to farmers markets and so on. If we consider the world situation, we have to increase food production by 50 per cent by 2030 and by even more beyond then. In that context, focusing on local food as a policy objective in Scotland could be an irrelevance because there are much bigger needs to meet. As James Withers said, farmers are going out of business and stock is declining. Arguably, it is more important to make the industry more competitive, regardless of where it sells its produce, than it is to focus on local food.

There is also the issue how we ensure that we give developing countries a fair deal. Why, in policy terms, is local food in Scotland important in a world context? Why should we back local food as a policy objective? In the wider context, is it not terribly relevant to have that as our top priority objective? I am interested in people's views on that.

Carey Coombs:

I return to the issue of public money. My view is, and always has been, that farmers are not just food producers. We must acknowledge that farming is a multifunctional pursuit. James Withers suggested that perhaps we should not be calling for more money to support farmers. However, I believe that we need to build the case to reward farmers with much more money. The only way to do that is to pay them for delivering social and environmental services. That is why I struggle with the issue of the single farm payment at the moment. The single farm payment is historically based and is perceived to reward farmers for doing very little, although I accept that they have to maintain environmental conditions. It is a problem for farmers to hold up their hands and say, "I am earning this money." I, as a farmer, would like to hold up my hands and say that. That is why I am an advocate and supporter of environmental organisations that would like the money to be used for supporting agri-environment schemes and such like. The way forward for farmers in the uplands is to pay them for delivering in the new market of agri-environmental services. The market does not support much apart from food at the moment, but it is clear that it could do so.

That is an interesting argument. You are saying that you want to pay farmers for environmental and social outcomes when, in fact, perhaps we should be paying farmers to get on with growing food.

Carey Coombs:

There is an open market for growing food. That is where we appear to be, with a global marketplace. However, there is not a market for other services.

Alasdair Morgan (South of Scotland) (SNP):

To follow on from what Peter Peacock said, it would be interesting to get some of what we are talking about in proportion. What proportion of the food calories that we consume in Scotland comes from local production? I suspect that it is infinitesimal. It would be interesting to know what proportion you think that it could get to, without our going back to some kind of stone age culture. If the proportion is not going to be huge, perhaps we should not spend too much time talking about it, as opposed to about other things. I merely put that point across; it can be knocked down.

Secondly, if I had come here from the planet zog, I would not be sure what we are trying to achieve. The objectives do not seem particularly clear. Is our objective to keep people in the upland areas? That might be a good idea; people can make arguments for it. Alternatively, are we trying to keep birds and animals in those areas, so that they look nice for the tourists? Are we going to keep farming activity there because we need the food that it produces? Is that just for the people who live locally—people would not live locally if the food was not being produced there—or are we talking about contributing greatly to feeding other people? There is woolly thinking about all this. I am not saying that I am not as guilty of that as anyone else, but I am not sure what we are trying to achieve.

That is interesting. There were a wide variety of submissions. If the primary focus is food production, that changes the parameters of what we are talking about. The primary focus might be something else.

Sally Crystal:

There is an element of people questioning whether local food is important and saying that we should be considering the global aspect and that farmers should be looking to increase their food production to sell on a wider scale. I totally agree with that, but the tendency has been to base all food policy on a multiple vision of global sales and supermarkets and so on. There is a place for local food and for food that is produced on a smaller scale. If we can keep small farmers in business by encouraging them to produce fish, meat or whatever—I am not suggesting that it should be just meat—we should do so.

To date, every Government food policy has, quite rightly, looked at the multiple, global aspect of food production and the small farmer has been left behind. We have to remind ourselves that a lot of the small farmers are still working on the hills producing small amounts of sheep and cattle for which they are trying desperately to get a good price at the market. They do not necessarily want to sell to the supermarkets because they do not get a good price. We should not lump everything together in one area of food production; you must remember that there is small-scale food production. There are small farmers markets that are generating an incredible amount of money and employing an awful lot of people. One should not write them off as not being there to stay, or say that they will not grow.

I did not get the impression that anybody here was writing them off.

Sally Crystal:

It was said that they are small scale and would not grow.

The Convener:

There are questions about the proportion of the whole business that they really encompass. It is fair to say that we get very focused on them, but part of the reason for that is that they are much more obvious; people go into their town centres and see the farmers market, which is distinctive. The markets have other benefits, which we should not overlook.

James Withers:

I am keen for members to take away the point that it would be disastrous to get to a position in which we had to choose between supporting farmers for environmental work and supporting them for food production. That has been the failing of agricultural policies for 60 years. After the second world war, we had an emphasis purely on food production. That was tremendously successful for the first 20 years, but then it went too far and we ended up with grain mountains and wine lakes, which had environmental consequences. We then took a knee-jerk turn from that and said that the environment was the most important thing, because we had enough food. We thought that we could relax and go environmental, but now we are worried about food production again. That sort of ping-pong is dangerous. We need to map out a policy that focuses on producing food well and which delivers an environmental by-product. Some 75 per cent of Scotland's land mass is farmed 365 days a year by farmers; they do a management job, but they produce food at the same time.

I will make one other point while I am hogging the microphone. Peter Peacock asked the fundamental question why we should support local food. We mentioned socioeconomic and environmental benefits, but we are living in a much more volatile world now. Food security is back on the agenda for the first time since the world wars. If you want any evidence of the fact that we cannot rely on the rest of the world, you can look to the example of Argentina. We have become much more reliant on South American beef imports, which has allowed a downturn here. However, the Government in Argentina decided to ban exports of beef to keep prices down. If we become overly reliant on the rest of the world to feed us, we will end up with a real food security problem.

That is useful.

Professor Thomas:

I will try to address a couple of the questions that members have asked. Alasdair Morgan simply reflected the fact that we are dealing with complex problems to which there are no simple single solutions. Often, single-issue lobby groups simplify issues because it is the only way to deal with complexity.

If we wished, we could still produce enough food in Scotland to meet Scottish needs, but we export a lot of food in raw material form, which is then re-imported across the border in processed form. Clearly, it would not make sense to grow bananas on Ben Nevis. We will always import food from countries that have crops that we do not have.

If, by local food, we mean food that is produced in Scotland, my argument would always be that producing food from a strong Scottish food base is a moral, an economic and a socioeconomic objective; I include in that primary production and the upstream and downstream industries that Michael Gibson mentioned. With regard to local food in the sense of food that is sold at farmers markets, such markets are extremely helpful in encouraging good engagement by the public with the food production process. Not everyone goes to farmers markets, but a proportion of the population, including people such as Peter Peacock, does so.

The same is true of any other marketing exercise. Let us take organic food, for example, which I do not buy much of, but many people do. If we consider the distribution of the purchase of organic food across the UK, we find that a huge proportion of it is purchased in London and the south-east. Typically, organic food purchases in Scotland are at about half the level that they are at in London and the south-east. Socioeconomic and community factors come into play. The issue is complex, but there are priorities—areas on which the Parliament can put in effort to bring benefit.

John Scott has chivalrously decided to forego his position in the list, so we will hear from Karen Smyth and then Michael Gibson.

Dr Smyth:

In response to Alasdair Morgan's question about whether we want to produce environmental benefits, food, a place for people to live and so on, I would say, "All of the above." The production of food and the achievement of environmental gains in the same area are not necessarily mutually exclusive. Many environmental management practices are carried out where food is produced.

I agree with Carey Coombs that there is a need to provide money for farmers to provide public goods and to ensure that the provision of those public goods by farmers is properly costed. Michael Gibson said that historic practices are not necessarily the way forward. That is partly true, but many hill farmers have no option other than hill livestock production, for the reasons that James Withers explained.

Michael Gibson:

In answering Alasdair Morgan's question, we must surely consider a Scotland-wide food policy that is pertinent to the richest and the poorest areas of the country. We should remember that Scotland has a well-defined, sophisticated processing and manufacturing sector that often needs high volumes of produce from productive areas and good, consistent supply chains. Our hills and uplands present a particular problem, but they must fit into a wider policy, as must local food issues.

We must remember that a food policy is about consumption as well as production, and that we want to use it to address some of the health agendas that are pertinent to us. I am talking about consumption by individuals and organisations. Government must have a key role to play in directing cross-cutting initiatives across its departments to facilitate action to address some of the dilemmas that arise from our food consumption.

John Scott:

I want us to move on from local food because time is on the wane. We have done local food to death, so we should turn to food security, which most of us agree is a key issue. I would like the witnesses to identify some of the barriers to food production in Scotland and Europe, and to give us their ideas on possible solutions.

Carey Coombs:

Before John Scott asked his question, I had intended to raise a debating point, which, as it turns out, is quite pertinent. Let us assume that we want to maintain or increase production. There are two ways of going about that. We could intensify production on high-quality ground, thereby freeing up land that was not deemed productive. The alternative approach would be to integrate food production with the wider environment. I know where my tendencies lie—I favour the integrated approach, because I do not consider looking after the environment and food production to be separate objectives. However, that is a topical debate.

I take your point.

The Convener:

Does anyone flat out disagree with anything that has been said so far? Please do not be afraid to say so. It is interesting that it appears that no one has heard anything that they flat out disagree with.

John Scott asked about barriers to food production. James Withers said earlier that he thought that Government could spend existing money better, but he did not go on to give a list of items on which it could be better spent. Would dealing with some of the barriers to food production be among those items?

James Withers:

I suppose that we go back to John Scott's original question, which was about what the barriers are.

Labour costs are a barrier.

James Withers:

There are labour barriers—there is a significant labour shortage—and skills and training barriers. Many of the skills in the agricultural industry are passed on through generations rather than being taught in academic institutions. The University of Aberdeen was the last major university to offer an agriculture degree, which I think has now been dropped. We need to think about how to support our specialist agricultural colleges.

There is a barrier to new entrants to the sector, which is mainly a cost barrier. It relates to access to support payments and, crucially, access to land. A major problem is the fact that the tenanted sector remains largely stagnant. We must address that if we are to allow new entrants into the industry.

There are regulatory barriers, too. A question that has been asked is how Scotland can compete on the world stage. We cannot—we cannot compete with developing countries or with South America because our regulatory structure, which is based on food quality, food safety, environmental health, health and safety and employment legislation, does not allow us to. That is not an argument for sweeping away that strong regulatory structure; it is an argument for saying that we need to get rewards from the marketplace for having a brand that is built on additional assurances for consumers.

I just want to confirm that the regulatory regime under which we operate applies across the European Union.

James Withers:

Yes.

So Scotland is not unique in not being able to compete with developing countries. That is the result of our choosing—or not—to comply with a regulatory regime that is imposed by the EU.

James Withers:

Yes. Issues arise within the EU, but those are mostly down to decisions about when to implement specific measures and how strictly to implement them.

I appreciate that.

James Withers:

I am talking about a more global issue, whereby the principles of free trade are not necessarily principles of fair trade. The fact that we operate on a different platform is not reflected in the price of products on Tesco's shelves.

You threw in the fact that the tenanted sector is stagnant. Before we hear from Des McNulty, will you amplify that slightly?

James Withers:

I do not want to open a can of worms, but I have probably already done so.

It is okay for us to discuss cans of worms.

James Withers:

Ever since the Land Reform (Scotland) Act 2003 was passed, landowners have been afraid of the right to buy. They have been frightened that, at some point, an absolute right to buy might come into force, which would mean that one day a tenant could wake up and decide that they wanted to take their farm. That has meant that, unfortunately, not enough land has been let, which has been one of the biggest hurdles. The fear of a right to buy might be irrational, but it remains a difficulty as regards the availability of land for let. Another issue is that new entrants from outwith the industry who want to rent land do not have the same financial back-up or financial foundation that is available to those who are already in the industry.

James Withers has raised some interesting questions. I have scribbled those down as issues to which we might choose to return.

The next question is from Des McNulty.

Des McNulty:

I want to pursue the points that James Withers raised. He suggested that, as is being said of the UK mortgage market, the system is fundamentally broken because there is a basic lack of confidence in it and no one knows how to resolve the big structural problems that exist. Essentially—if I understood the point correctly—the big issue with the supply of skilled people who could become farmers is not necessarily a shortage of agricultural colleges, but the process by which people become farmers or tenant farmers. People need support to be able to set themselves up in business and to become trained within the industry. Whereas in other countries around the world—as was the case here perhaps 40 or 50 years ago—recruitment into farming is a matter of custom and practice and things are handed on from father to son or within local communities, in this country that process has in a sense come to an end. However, we have a situation in which new entrants, whose skills and energy could perhaps resolve some of the problems that are being experienced at a global level, face barriers to get into farming. That is the problem that we need to sort out. We agree on the problem, but what is the solution?

James Withers:

The tenant farming forum and the Scottish Government have done a lot of work on new entrants schemes and how to support new entrants. However—this may be a bit of a cliché—the best new entrants scheme is a profitable industry. We can address small training issues and even some of the tenancy issues, but the biggest concern is the fundamental profitability of the industry. Really, the existing generation of farmers stay in the industry because it is in their blood. When the accountant visits the farm, he usually leaves in tears asking, "What on earth are you doing?" The farmer says, "Well, I have always been a farmer and my father was a farmer." The committee understandably wants to hear about detailed matters such as training, issues of labelling and public procurement, but there is a fundamental issue of profitability. We need to consider the whole structure of how we support farming. If we get that right, new entrants will come along because the single biggest barrier will have gone.

Michael Gibson:

We are in danger of talking ourselves into our boots in saying that the whole situation is broken. I do not think that the farming system is broken, but the wrong signals and the wrong messages are coming out. Farmers are insecure at the moment. The lack of confidence comes from global changes—fertiliser prices have a fundamental effect on how we farm in Scotland, particularly on grassland—and from not knowing what will happen under the next round of reform of the common agricultural policy. For people who are involved in a very long production cycle, such things matter. We also have a fear of a free market—which is, as we said, not necessarily a fair market—and we fear the influence that the multiples can exert on producers, as happened in the dairy industry. Access to land is prohibitive, both for new entrants and for farmers who want to expand. Very often, that is due to our current fiscal situation. In that context, it is important that the Government provides a coherent long-term policy that can give food producers the confidence to go forward.

The Convener:

However, many of those challenges cannot be directly affected by the Scottish Government. It is important that we try to establish what tools the Scottish Government has that could make a difference. The Scottish Government cannot necessarily have an impact on international oil prices—not yet anyway.

Michael Gibson:

I appreciate that—

The Convener:

Some of those points are extremely valid—I also hear them from friends who are in farming—but the cost of fuel and the cost of feed are almost externally imposed costs that need to be managed somehow. In the circumstances, what can the Scottish Government do to help to make things better?

Michael Gibson:

One thing that Scottish Government policy could do is to ensure that we can farm better and get better value for our produce. We need a better and stronger market and we need to do things better. However, we are in danger of concentrating on terrestrial agriculture when we should be looking at food in its widest sense. We need to consider what we can produce in Scotland with an overarching food policy.

I will let Karen Smyth and Carey Coombs respond before we have a brief suspension.

Dr Smyth:

Briefly, I agree with what James Withers said about barriers. One barrier that I want to highlight is regulation. Over the years, we have noticed that the Scottish Government has introduced gold plating into many of the European Union regulations. That has placed additional burdens on farmers that have caused many problems. That is one issue that could be addressed.

Carey Coombs:

I want to pick up on Michael Gibson's comment that the farming system is not broken. That may be the case, but it is potentially broken. We have some serious major issues such as climate change and peak oil. I take Michael Gibson's point, but I do not think that we should belittle the problems.

I suspend the meeting for two or three minutes to allow people to refresh themselves.

Meeting suspended.

On resuming—

The Convener:

There is still a lot to talk about, so we could perhaps move on to the role that research can play in food production and food security—although I do not want this to turn into a 45 minute discussion on genetically modified food, because there is more to research science and technology than that. I am also interested in some of the land use issues that have come up, although I know that the Scottish Government is launching a separate land use inquiry. We can discuss those two issues now and try to cover one or two others later.

Professor Thomas:

I can kick off on the research question. The reality is that Scotland has never been well placed in its agricultural resource assets. Some 85 per cent of the country has less favoured area status, and it has always been a difficult country in which to be successful in agriculture. It has been successful historically because it has been particularly strong in scientific research and industry innovation. My argument is therefore that we abandon the assumption that we need strength in those areas at our great peril.

The research sector in the UK as a whole has been declining for—I am tempted to say—most of my adult life. There have been good reasons for that, but in many areas now we have only the amount of scientific resource that we can get away with, which is limiting. There are only one or two people in some areas of expertise, and any further erosion would be very damaging.

My view is that, as a country, we have to focus on not only doing the right research in the right way but ensuring that we have the resources to develop our own research and engage with international research. If we do not have people in our country who can understand what is happening elsewhere, we cannot make use of the wider research base. Our research base in Scotland is extremely important.

John Scott:

You seem to be painting an apocalyptic picture—essentially, that our research basis has almost reached the point at which there is insufficient critical mass to sustain the development of our rural areas at a time when we most need that development to increase food production capability. Is that what you are saying?

Professor Thomas:

I would not want the situation to sound quite as difficult as that. Over the years, the research institutions have been very good at focusing on the great priorities. Therefore, to some extent, the rationalisation and adjustments in our system have maintained a strength and quality in particular areas. However, we have lost whole sectors—and whole institutes—that were important historically and which are still important. My concern is that, if there is further erosion, we will not be able to respond to challenges.

My argument is therefore for maintenance and growth. Further investment in research is essential. There are opportunities for innovation in agriculture and aquaculture—an area in which I have an interest—but those innovations will be driven only by the right research investment and the development of new technologies from that. Historically, Scotland has been strong for the reasons that I have given; we are not in nearly such a strong position now.

Michael Gibson:

As I am chairman of both the Macaulay Land Use Research Institute and the management board of the Scottish Association for Marine Science, research is close to my heart. I do not quite share Phil Thomas's apocalyptic view, but we need to understand a lot more about land use and the options that are available to us.

We do not necessarily understand our relationships with the accepted pillars of sustainability—environment, production and social economics—particularly under climate change conditions. Climate change is not all one way; in some cases, it affords us opportunities. It is important that we can adapt to climate change.

Changes to our land use and what we produce from it often have unintended or unforeseen effects, particularly in social economics. For example, we might seek to enhance our environment by culling deer, but in doing so we might slow down employment, take away business from hotels and disturb what is a delicate economic balance.

We have to understand what we need from land use to attract tourists. For example, if we overegg the pudding with wind farms, is that a negative or do tourists not mind? We also need a greater understanding of the research that will examine the marine environment in conjunction with the land environment, particularly in our sea lochs and the west coast, where they are inextricably linked.

We need to do that research, but unfortunately it can be long-term, expensive work. We need to articulate clearly the questions that we are asking and to understand what we expect from the research. We do not always do that—we often stick in a pin and say, "Keep going, we'll do a bit more of this and a bit more of the next thing." We do not yet have a vision of where we are trying to go or of the research that we need to underpin that.

Who should provide that vision?

Michael Gibson:

We can try to interact as much as possible with the major funders, but many of the questions are international, and at the Macaulay we interact a lot with international collaborations and with international funders.

The Convener:

In Scotland, we have never really had an equivalent of the Commonwealth Scientific and Industrial Research Organisation in Australia. The CSIRO is widely known in Australia, right across society. Advances are taught in schools—for example, the advances that allowed wheat to be grown in areas where it could not have been grown before—as part and parcel of Australian history. I know of no organisation in Scotland that has ever had a public status or acceptance that is equivalent to CSIRO's. I may be wrong. Does Phil Thomas want to contradict me?

Professor Thomas:

Yes, I will contradict you on the issue of status: the Scottish agriculture research institutes and the SAC were actually leading the CSIRO by many years. However, you have a point when you talk about acceptance and recognition. The general public has not widely appreciated the strength of our agricultural research base.

Looking at the citation indexes of research is a way of measuring a country's research output, and Scotland has led in biological and agricultural research. From memory, Scotland was second only to America, and that was attributable to our very strong research institute and SAC base. However, that was not widely recognised.

Carey Coombs:

I want to pick up on a question raised by previous speakers—the question of what is the right research. Tim Lang, who reviewed the Scottish diet action plan, has forecast that food production could move away from the productionist paradigm and towards either a technological paradigm or an ecologically integrated paradigm. That is the sort of debate that we might have to get involved in. It might not be as clear cut as that, but those are the sorts of argument that we will have to consider.

I want to pick up on the GM debate, which I imagined would come up. I have brought along the latest issue of the journal of the Food Ethics Council, which says that the debate on GM foods is the wrong debate. Basically, the journal suggests that the debate should be about what kind of food production we need and about how to get it. We should not be saying, "We've got GM technology, so what's the problem?"

Would you tell the clerks how to access that information so that the rest of us can read it?

Carey Coombs:

Yes. I have simply summarised my starting point for the debate on GM.

James Withers:

It is critical that we keep quality research in the public sector, and GM is a good example. We have got into a "GM—yes or no?" debate, but we should be saying, "GM—maybe, but let the scientists do the work so that we can make a rational decision."

Because a message is going out that we do not do GM, I fear that we will export research elsewhere and will lose some of our best scientists. The crucial point is that the research will go into the private sector; the Monsantos of this world will own the research and they will have a clear vested interest in its outcome. Keeping the research in the public sector will be critical so that we can make informed decisions in this country on whether GM has any future here and on what that future might be.

Professor Thomas:

Whether we as a nation accept GM food and GM crops is a public debate that has yet to be had. However, GM technology is already with us and already having an impact. I will give two specific examples. Increasingly, vaccines are produced by GM technology, and unless we are to opt out of using all the new vaccines that become available, we will not be able to sidestep GM technology.

Let me put my second example into a feed context. From memory, I think that the European Union is about 28 per cent self-sufficient in plant protein—soya bean in particular—for animal feed. The rest of the world has moved lock, stock and barrel to growing GM soya beans for good economic reasons. Therefore, we will get to the situation—indeed, we may be there already—in which we cannot avoid importing GM materials to use in animal feed.

We can park the debate about whether we should grow GM crops, but it is simply unrealistic for us to think that we can sidestep all GM technology.

Carey Coombs:

There are two separate issues. Medicinal use of GM technology should not be confused with food production; it can be a separate issue. Also, the fact that GM technology may be used worldwide does not necessarily mean that we have to use it. There may be reasons for that and I am sure that we could debate it all day.

To be honest, the amount of plant protein that we import to feed animals is a scandal. There is no economic, environmental or ethical reason to go on importing soya from South America to feed livestock. It is quite a serious issue. We should be thinking of reducing those imports, and certainly not maintaining them.

Michael Gibson:

Government and policy makers will always have to make tough decisions and there will always be a little bit of a dilemma. It is extremely important that good, independent, trustworthy evidence is available to them to help them in that process.

The convener asked whether what we do is as good as what Australia does. Our communication of the available research findings probably needs to be much better. We need to communicate the findings to non-governmental organisations, Government and individuals. We also need to inform individuals better about what the research means for their day-to-day lives. Equally, Government, NGOs and individuals must be receptive; they do not always want to hear what researchers have to say.

The Convener:

I was making the point that Australians grow up knowing about advances and, through their school system, are made conscious of the relevance and importance of those advances to the Australian economy. I do not sense an equivalent connection in Scotland.

Michael Gibson:

On the Food Standards Agency, individuals are becoming more dislocated from knowledge of where their food came from and how it was produced.

John Scott:

The convener has charged me with moving on again to another question. We want to talk a little about the effect that competing land use priorities—such as wind farms for energy, flood management, recreation, housing and growing biofuels—have on food production. Should we work towards a more spatially planned use of our land or would it smack of the Soviet state to suggest that we move towards an absolutely planned, integrated type of agriculture? I would be interested to hear your views on how best to use our land, given the competing demands on it and the discussion about food policy.

James Withers:

That is a really important issue. At the moment, there are competing signals. If I have a hectare of farmland somewhere in the central belt, I have no idea what people want me to do with it. Should I flood it to protect the town, grow biofuels on it, grow food on it or plant it all with trees? All those options appear to have some worthwhile gain somewhere along the line.

We are almost coming back to a back-to-basics approach. For the reasons that I outlined earlier—a volatile world, food security and the socio-economic and environmental benefits—food production is becoming critical. However, the impact that proposed legislation will have on food production is not considered as part of the legislative process in the Scottish Parliament or elsewhere.

Although we do regulatory impact assessments and look at costs, we do not hold up any of our significant legislation to a food production test. If we decide that food production is important and we develop a food policy, it would be worth while holding up legislation, such as the flooding bill, to some kind of food production test to see what impact it would have on our potential to produce food. Then we can make an informed decision about whether we want such legislation to go ahead or whether we want to apply the brakes to it.

That is part and parcel of the argument that every piece of legislation or regulation should be subject to rural proofing.

James Withers:

Yes.

Alasdair Morgan is pulling a face. Do you want to speak?

No, I always pull a face.

Dr Smyth:

The issue of targets and priorities has concerned us for some time: we have targets for biofuels, forestry and so on, but not for food production. I am not saying that we should have a target for food production or that biofuels and forestry are unimportant, but food production has to be taken into consideration with the other land use objectives that the Government sets.

We welcome the Government's proposed study into land use, which I think is happening in the next month or so. I hope that it will set some academic research in the area. Although the debate has been opened up, as John Scott said, we do not want some sort of Stalinistic planning process whereby we cannot grow food where we want to or have forestry where it is necessary. However, there should probably be some rules, such as on where to locate a flood plain because we do not necessarily want another land use practice in the same place. We need to think logically about working with the land that we have.

Michael Gibson:

If we look at land as a resource, land managers are simple and basic about what they do with it, which depends on the signal that they get about the likely future flow of funds from that resource. They have in front of them a matrix of opportunity, if you like, and that matrix is very restricted in certain parts of Scotland. For example, you can have only cattle or sheep in certain places; in other places, it might be possible to have a bit of forestry or the opportunity to look at renewables and some environmental schemes.

There is much greater choice in land use in the lowlands—consideration can be given to biofuels, housing and all sorts of other opportunities. If, however, some of those opportunities change and the decisions are irreversible, it is important that the signals given to land managers are well thought through. They cannot knock down houses and go back to producing wheat. When flood plains are flooded, will they be recoverable? Such questions are unanswered.

Land managers can replace biofuels—they can grow wheat for biofuel one year and go back to food the next. However, if people in dairying do not get the right signal that dairying is economic, they will have to leave the area and will not go back in a hurry.

Carey Coombs:

I have no particular answer, but I will throw something into the mix that follows on nicely from what Michael Gibson said. The decision is not just one about different types of land use; it is about which agricultural commodities are used as well. If, in the future, we seek to align production closer to diet, there might be a case for looking at growing more fruit and veg, for example, given the constraints of the Scottish climate and topography.

Professor Thomas:

I am a great believer in market forces. Someone asked earlier what the Scottish Parliament could do. One thing that it could do—and which it does—is influence the market by making regulations, pronouncements and policy statements. Very often market forces move much more quickly than any Government might anticipate and sometimes the outcomes are not necessarily the desired ones.

My plea is that, as Michael Gibson said, we must think through the impact of a change before it is made. For example, when the debates on land reform took place, one could have predicted that the situation that James Withers mentioned earlier would arise—that there would be fewer rather than more tenancies—yet the Parliament seemed unable to get its mind around the fact that the market might act in a perverse way even though almost everybody supported the objective of the legislation.

There are some tricky issues, but the important point to remember is that legislation influences the market.

The Convener:

I do not want us to go too far down that line, but many people were aware of that possibility, which is why many people in the Parliament at the time wanted the legislation to go further than it did. Some things become self-fulfilling prophecies. If people do not play along and legislation does not result in what we want, we can go back and people might be confronted with even greater legislative demands. That relates to the tenant farmer issue. If the legislation had gone further, it might have prevented the situation that Professor Thomas mentioned.

Des McNulty wants to comment, and then we will move on to a theme that James Withers mentioned—the application of legislation. I would like us to discuss how the climate change bill will affect food production.

Des McNulty:

I am interested in land use planning. In recent years, around our towns and cities and sometimes well beyond them, rural areas have been suburbanised, with significant amounts of generally good-quality farmland being converted into housing. There is an impact on climate change because much of that housing is not close to public transport. Should we prevent such development and state that we are not going to have mass suburbanisation? Should we monitor the boundaries of built communities and force people to build on brownfield sites and have higher population density? How does that relate to the rural housing crisis? We hear that it is difficult for people who work in rural areas to access housing.

Is there a feeling that we are operating with inconsistent policies or policies that are too broad to meet the requirement for food security that you highlight? Should we prioritise one policy and say that the others will have to fall into place, or is the situation just a mess, with different departments going in different directions?

I will pick up on that.

Will you hold on a second? Do the witnesses want to pick up on what Des McNulty said, or shall we let it lie just now?

Sally Crystal:

I have great sympathy with what Des McNulty said. Local authorities tend to rush to agree to applications because we need more housing, but there is little thought about where developments are being situated and whether they are close to public transport such as buses. We do not have good, well-thought-out policy on the matter. Policy needs to be reviewed, because urbanisation is coming into the middle of the countryside and taking up good, valuable farmland.

Michael Gibson:

We have to do much more to co-ordinate the roles of central Government and local authorities in planning and the development of land. At present, we get sporadic developments and there is huge inconsistency. Something appears to be all right on one side of a local boundary but not on the other. We seem to be torn between a number of priorities. On the one hand, we want to give people new houses but, on the other, we want to preserve things in aspic. We need to think carefully about how we plan in the broadest sense. Planning seldom takes account of food production or how to achieve infill. Often, that leads to bad use of our inner-city and town areas, which are not developed in the way that they should be.

Your point is that there is not enough brownfield regeneration.

John Scott:

Those who are old enough to remember will be aware that the last time that we felt that we did not have enough food—after the second world war—the policy was that good agricultural land should not be built on or used for forestry. Perhaps we need to go back to that presumption. Over the past 20 years, good agricultural land has been assigned for housing because food production no longer appeared to be vital. Perhaps that presumption in favour of food production will come back into play. That follows on from Des McNulty's point.

I think that we can probably move the discussion on now, unless Alasdair Morgan wants to respond.

Alasdair Morgan:

The issue is a bit more complex than food production. As has been alluded to, the issue is what kind of food we should produce. For example, what mechanisms make people produce beef instead of frozen veg? We know that people are driven to that type of production by the market and by the subsidies that are available. In Scotland, we have tended to concentrate on niche—that is, more profitable—sectors such as beef production. However, in attempting to address the global food crisis, one would not necessarily go for the most profitable products such as beef, which takes a long time to produce. One would go for whatever put calories in people's bellies, basically.

The question is whether we have reached the stage at which there should be an overriding priority for land use that everything else should follow.

Peter Peacock:

We have talked about the part that technology can play in increasing production and how science and research can improve food quality, but we have not addressed the prior question—prior even to the issue of land use—of what Scotland's role should be. As Professor Thomas said, Scotland is clearly not the world's bread basket, given that it comprises mainly less favoured area. Does that mean that our national food policy should be to fill European and worldwide niche markets for high-quality products, for which the regulatory burdens are perhaps a benefit? Alternatively, as Alasdair Morgan suggested, should we think about having more volume and less quality to try to meet some of those world targets?

Perhaps those are not complete opposites, but I am interested to hear people's views on where Scotland should position itself in terms of food policy. Do we go for quality, or do we go for volume?

Professor Thomas:

That is a no-brainer. Scotland has to be at the top of the quality market because we cannot compete in commodity markets, by and large.

That has implications for land use.

Professor Thomas:

That is right. Quality foodstuffs should be our niche.

However, food security is also an issue in an uncertain global market, in which someone else could turn off the supply on which we have been reliant. The issue of food security cannot be ignored.

Professor Thomas:

That is also true.

John Scott will move us on to the impact of the climate change legislation.

John Scott:

This is a topical issue. It is argued that cattle produce too much methane so we should eat less beef. Obviously—I declare an interest as a beef and sheep farmer—I would not want that, but I want to hear people's views about what impact global warming should have on food production. Where should the balance be struck?

At some point before we finish at 12.45, we also need to have a discussion on biofuels, so perhaps that issue can be rolled up into this discussion.

The Convener:

We want to consider those issues in the context of the carbon emissions reduction targets that the UK and Scotland are signing up to. Following on in the spirit of James Withers's earlier comments, what are people's views on how those targets will impact on cattle farming, biofuels and food production?

Carey Coombs:

I, too, declare an interest as a beef farmer. That said, I acknowledge that methane is a gas that is at the top of the agenda. However, the situation is much more complex. We should be looking to optimise rather than maximise cattle numbers. The knee-jerk reaction of calling for a decimation of cattle numbers would be a nonsense.

The other important gas that is attributable to farming is nitrous oxide. Farming systems must tighten up their nutrient cycles in that regard. What the water framework directive addresses and the nitrates that are emitted as a result of high nitrogen use are part of the same problem. Basically, we have a created a huge nitrogen flux and we are emitting a lot into the air. Fertilisers have a big part to play in all of this. Obviously, we know how to tighten up fertiliser usage. Given that I used to work for the Soil Association Scotland, I would suggest that organic farming has a role to play.

So you are saying that we should look more towards the fertiliser side of things than to the capacity of a cow to produce methane.

Carey Coombs:

It would be a nonsense to call for a decimation of cattle numbers. That said, methane must be looked at in the mix; we must not shy away from addressing the issue.

Michael Gibson:

I have no idea about the relative flatulence of my cows. The issue is important. We need to do quite a lot of research into the definitions of the terms that we use when talking about climate change and global warming. We need to define what we mean when we say "carbon footprint" or "food miles". We need to put such terminology into everyday language. Different groups bandy about terms for different reasons—it seems almost to be done ad hoc. However, food miles, for example, are not necessarily a bad thing.

In terms of food policy, we have to look more at whether we have the best fit for our farming. For example, should we concentrate on ensuring that all the cows are up in the hills grazing on the rougher pastures and that they are the right cattle for those pastures? Also, should our grade 1 agricultural land be used only for growing vegetables, soft fruits and other highly productive foodstuffs? Price will drive that: farmers are not daft, so they will move to adopt those practices.

On fertilisers, price will drive change faster than anything else will do. Current prices mean that an awful lot of our upland grassland is unsustainable economically. Farmers will increasingly have to look at using clover as a fertiliser and at other alternative mechanisms.

Has the NFUS considered the impact of the proposed climate change bill on agriculture?

James Withers:

As Carey Coombs pointed out, we could effect an 80 per cent reduction in livestock emissions simply by getting rid our cattle. However, we probably do not want the knock-on impacts of doing that. I return to the issue of measuring food production impact.

The debate on climate change seems to be focused on attempts to quantify and cut emissions without looking at the other side of the debate. We need also to ask to what extent agricultural practice is acting as a carbon absorption mechanism. In other words, is agricultural practice taking greenhouses gases out of the atmosphere? We also need to make comparisons between systems in this country and those elsewhere in the world.

The nitrous oxide in fertilisers is a greenhouse gas that is 310 times more harmful than carbon dioxide is. Our agricultural system is based mostly on extensive natural, organic with a small "o" systems that have a much better environmental track record than is the case in other parts of the world from which we may have to import more food if we do not protect capacity in this country.

We need to consider both sides of the debate. Some work has been done to look at beef production in Scotland, the initial results of which suggest that beef farming might be a carbon-neutral activity. That finding probably sounds bizarre when viewed from the standpoint of the debate thus far on methane output. We need a rounded debate that considers the greenhouse gas that farming is absorbing as well as that which it may be pumping out.

So the debate thus far has been only on the negative outcomes and not on some of the positives.

Dr Smyth:

Earlier, we discussed the issue of research and development. In meeting climate change targets, we should consider R and D. There are ways in which we can reduce methane emissions, for example by housing livestock and giving them foodstuffs that reduce emissions. However, the wider public might pose questions about that, and public perceptions of quality might be affected. Quality and the way in which we deal with our livestock have to be taken into account.

Professor Thomas:

The 80 per cent target is hugely challenging for every sector, including agriculture. The good news for agriculture is that many of the things that we would do in order to reach or approach the target are also financially beneficial. The economics and the doing of the job often go together. I will give a simple example to do with methane. Any process that speeds up or intensifies the production of livestock or milk, making it more efficient, also reduces the amount of methane that is produced per unit of food produced. The equation is very simple. The things that are more efficient economically are also more efficient in terms of reducing the production of methane. That is the plus in the equation.

What about biofuel production and its impact?

James Withers:

I do not think that vast swathes of Scotland will be growing crops for fuel rather than food. The biofuel debate has become polarised. Last year, biofuels were saving the world; this year, they are the end of the world.

Some biofuel developments in Scotland are almost unquestionably a win-win—when we are using waste and turning it from a costly by-product into a beneficial product with an economic and environmental value. For example, growing oil-seed rape, using it to make vegetable oil to cook food, and then—instead of disposing of the oil at the end of its usefulness for cooking—channelling it into biodiesel, seems like a great story. Similarly on the livestock side, animal fat—tallow—has been a costly waste product for a while. However, as long as the regulatory framework allows us to do it, we will be able to process the fat into biodiesel. That is happening at the Argent Energy plant in Motherwell just now.

The biofuel debate is more complicated than the polarised view would suggest. There are some wins in Scotland at the moment and we should try to invest in them. Government money for processing, marketing or grant schemes can help such developments, turning costly waste into valuable product.

We have only eight minutes left. We will have another debate this afternoon with another panel of witnesses, some of whom will be interested in global issues, but are there any significant issues that we have not discussed this morning?

Carey Coombs:

I would just like to point out that regulation can be different from bureaucracy. Regulation is not necessarily a bad thing, but bureaucracy can be a pain in the arse.

Did the official reporters get that? [Laughter.]

Carey Coombs:

Another point relates to food sovereignty—mentioned by another speaker—which concerns where power, capital and influence lie in the food system. It would be worth while having a debate on that in the Scottish context, taking supermarkets, multinationals, food democracy and food justice into account. It is a big subject.

Sally Crystal:

I could not agree more with what Carey Coombs said about regulation. We have to look into that.

Michael Gibson:

This debate is broad, and we have to keep track of the fact that it involves the whole of Scottish food production and not just terrestrial food production. We must also remember that the food debate is part of the health debate.

The Convener:

We have been talking a lot about land use strategy, which must have been frustrating for you, but a marine bill is coming up. Would you say that the marine bill has the potential to be as important for food production as any land use strategy?

Michael Gibson:

Yes, but the important thing is to tie them together. Government must be able to bring together the health debate, the marine debate, the terrestrial debate and the economic debate, and then try to come up with a way of satisfying the whole lot.

Dr Smyth:

It is important to educate the general public about where food comes from and the benefits of local food and so on.

James Withers:

I was going to mention education, but I will not do so now. Two aspects that might seem small compared with the big structural things that we have talked about but which could send an important message are public procurement and labelling. Buildings such as this one should be standard bearers for public procurement of local food, but they are not, so we need to address that. For a variety of reasons, the saltire is appearing on many things at the moment, not least in supermarket aisles, but it means nothing as far as food provenance goes. We need to consider how we can develop our brand and produce to the best possible standards. If we lose control of the brand at retail level, it is gone. Unless the saltire-type labelling means something for the food, we will lose a lot of our good work.

Professor Thomas:

I would emphasise the point that has just been made. The saltire as a brand has been very important in terms of Scotch quality beef, for example. The other issue that was raised, which Michael Gibson just touched on, is marine development. We have tremendous potential in Scotland for further development of aquaculture in conventional fin fish farming and in shellfish and so on. The marine bill and everything associated with it is crucial. At the moment, the framework of regulation that we have in place is, in effect, driving the industry elsewhere. It is genuinely a barrier, compared with the situation in many of our competitor countries. We must have regulation, but it has to be fit for purpose.

The Convener:

A consultation on the marine bill is on-going. The bill will almost certainly come to the committee at some point. I am glad that we touched on procurement, because I am happy to tell you that all the berries that we have been eating this morning are Scottish grown, as is the lunch that is now available outside for those who want to stay to eat. We cracked the whip and ensured that Sodexho provided us with food that is locally sourced. I hope that you enjoy it. I thank all the witnesses for coming. We have had a really good time. We cannot cover every issue in one go but, from our point of view, the morning has been a fantastic exploratory session. I thank all the people from the Scottish Parliament information centre who produced the papers and the various staff who have had to do the work. They will continue to be with us this afternoon.

Meeting suspended.

On resuming—