A retail specialist has warned farm shop owners in Scotland that the sector is in danger of major retailers muscling in on their territory. John Stanley gave his warning yesterday, but said there are still lucrative opportunities available for farmers seeking to shorten the supply chain.

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Scotland along has over 200 farm shops and the number is rising rapidly; recent government grants focusing on boosting and diversifying farmers’ incomes have often included setting up farm shops or an online presence. As more consumers in Europe become more aware of where their food comes from, and the pressures facing farmers who deal with large retailers, more are attempting to buy direct from farmers themselves.

Mr Stanley warned that supermarkets would be looking to co-opt farmers’ unique selling points for their own gain, after many have reported falling profits. One major supermarket has already converted the fresh produce section of its stores into a giant replica of a farmers’ market.

However, another analyst speaking at the conference in Edinburgh said the ‘local’ attraction of farm shops and farmers’ markets is something large scale retailers cannot effectively copy and that an increasing awareness and interest in local, healthy food was behind a recent resurgence in farm shop spending, despite the effect of the recession.

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