Swedish oats, Oil highs, Carbon offsetting

Competition is healthy, but when firms selling meat and dairy alternatives play fast and loose with the facts in their multi-million pound advertising campaigns it’s not fair to farmers. As I discuss below, the Swedish oat drink maker Oatly has just got a well-deserved rap over the knuckles for its misleading adverts. But now it has moved onto a new campaign and none of those swayed by its claims will be any the wiser. As I also talk about, the farming industry has plenty on its plate, but it needs to learn from the competition and prioritise creating more consumer-friendly fact-based evidence to tell its own compelling story.

Do get in touch if we can help in any way
Andrew Shirley, Head of Rural Research

In this week’s update:

• Commodity markets – Oil hits seven-year highs
• Carbon offsetting – Scottish MPs have their say
• National parks – Government responds to Glover review
• Tree planting – New initiative launched
• Covid costs – Sick pay scheme reopened
• Rewilding – A nuanced perspective on our podcast
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Swedish oat drink firm defeated

Commodity markets – Oil hits seven-year highs

The price of the Brent Crude and West Texas Intermediate oil price benchmarks hit seven-year highs as the threat of war between Russia and Ukraine rattled markets. Brent Crude closed last week at over US$90 a barrel. Some commentators are predicting a barrel could hit US$100 this year, which would add significantly to farmers’ fuel bills. On the flip side, wheat prices also continue to rise on the back of conflict concerns.

Carbon offsetting – Scottish MPs have their say

It was interesting to read an article in the RICS Journal concerning a recent debate in the Scottish Parliament regarding the purchase of land by private companies and institutions for carbon offsetting schemes. There were two threads to the criticism – first that carbon offset schemes only perpetuate the reliance on fossil fuels, and second that such purchases are concentrating more of Scotland’s land into the hands of a few owners.

Labour’s Mercedes Villalba said: “…if Holyrood is serious about tackling the climate and ecological crises, it is time to redistribute land.” She welcomed the SNP's commitment to a public interest test for land transfers. “More radical proposals such as caps on private landholdings and a land value tax must also be considered”, she said.

It is worth noting that carbon offsetting schemes, once lauded, are now coming under increasing flak. This article by George Monbiot sums up the mood of many conservationists.

National parks – Government responds to Glover review

The government has issued its response to a review of National Parks and AONBs by Julian Glover. The proposals include establishing a new national landscapes partnership “to build on the existing collaboration between National Parks England and the National Association for AONBs, complemented by roles for the National Trails and National Parks Partnerships”.

A consultation on the proposals closes on 9 April.

Tree planting – New initiative launched

The government, in conjunction with the Forestry Commission, has just launched a new initiative to encourage landowners and farmers to take advantage of the incentives available for creating new woodland.

It says the grant schemes will help land managers diversify their businesses, with the potential to receive a grant of over £10,000 for every hectare of new woodland created.

Under its England Trees Action Plan, published last year, the government wants to see 7,000 hectares of woods planted every year.

Payment rates for woodland creation and maintenance in England have also been increased from £200/ha per year to £300.

Edward Holloway of our Forestry team comments: “Woodland creation can add value to farms, estates and farm businesses, while complementing food production and improving environmental benefits.

The increase to payment rates will ensure that planting trees, particularly on marginal land, will remain a viable opportunity and help meet the government’s ambitious woodland creation targets.

Both landowners and farm tenants should consider this as part of creating more sustainable and profitable businesses.”

Covid costs – Sick pay scheme reopened

The government has reopened temporarily the Statutory Sick Pay Rebate Scheme to help employers hit by growing numbers of omicron-related staff absences. Small and medium-sized businesses can reclaim up to two weeks of statutory sick pay per employee hit by the virus dating back to 21 December.

Rewilding – A nuanced perspective on our podcast

We’ve received some great feedback on our recent Knight Frank Intelligence Talks podcast where Tom Heathcote, Head of our Agri-Consultancy team, and I discuss rewilding and the government’s plans for landscape restoration and environmental support payments for landowners and farmers. If you haven’t tuned in yet have a listen to see if you agree with our thoughts on this increasingly controversial topic.

The latest edition of The Rural Report, our unique publication for rural landowners and their advisors, was launched with a video highlighting some of its key content around the topic of ESG. If you missed it, you can sign up to watch on demand at your leisure. It was a lot of fun making it and includes a thought provoking interview on diversity, with Wilfred Emmanuel-Jones AKA The Black Farmer. I think you’ll find it both entertaining and informative.

Sign up to watch The Rural Report launch video

Overseas news – Swedish oat drink firm defeated

A while back I reported that Oatly, a Swedish company that manufactures oat-based drinks often used as a milk substitute, had been criticised for its misleading adverts. These included so-called “expert” claims that cutting meat and dairy from their diets was the single biggest change people could make to reduce their environmental impact. There was also a range of, to my mind, frankly creepy adverts where children gave their dads the cold shoulder for drinking milk.

The Advertising Standards Authority has now ruled four out of five of Oatly’s claims were not backed up by enough evidence and banned the adverts in question. In response, Oatly said: “It’s clear that we could have been more specific in the way we described some of the scientific data.

“We’re a science-based company and take pride in being precise, but we could have been clearer. We talk about these things a lot, because we want to make it easy for people to make an informed switch from dairy to oat drink.”

Keep an eye out for Oatly’s new puppet-based advertising campaign.

Photo by imagenation.jpeg on Unsplash