Aberdeenshire Beef Sector faces financial pressures ahead of BeefTech 2025

In the lead-up to this year’s RNAS BeefTech event, there is growing recognition across the sector that traditional working capital arrangements may no longer be sufficient. Input costs, price volatility and shifts in production strategy are combining to stretch on-farm cash flows. The situation has prompted renewed conversations about how farmers can secure the financial headroom required to maintain output, invest with confidence and adapt to evolving market conditions.

Rona Jordan, Director of Agriculture for Virgin Money in Aberdeenshire, works with farmers daily and says the first half of 2025 has brought significant pressure to the beef sector.

“In recent months, we’ve seen substantial increases in store cattle prices. For a business holding up to 500 animals at any one time, that could mean an extra £500,000 in working capital tied up in stock. That scale of change has real implications for business cashflow, even where prices for finished cattle remain strong.”

The significant movement in store prices has challenged traditional lending facilities and operating models. Rona explains that more farmers are now reaching out for borrowing support, including many who have never previously required finance.

“There is no one-size-fits-all solution. Each farming business is different,” she says. “But we are encouraging farmers to begin conversations early, even if they are unsure what they might need. Well-prepared cashflows, up-to-date accounts, and a clear understanding of stock costs can make a big difference in getting appropriate facilities in place before financial challenges arrive.”

Recent reforms to the basis period rules have also led to year-end changes for many unincorporated farm businesses. Rona urges farmers to complete their 2025 accounts as soon as practical, particularly if they plan to approach their bank for support later in the year.

“We’re not asking for perfection, but management accounts and working forecasts can help both the farmer and the lender make informed decisions,” she says. “It’s also an opportunity to look at margins, feeding strategies, weight conversion and cost control, factors that are becoming more critical every year.”

As BeefTech 2025 approaches, Rona expects these financial planning conversations to feature prominently. While confidence remains strong in many parts of the sector, she cautions that success in a high-price environment still depends on clear financial strategy, particularly for those expanding or adapting their beef production enterprise.

“It is an exciting time for the beef sector, and it is good to see suckler producers benefitting from strong prices,” she adds. “Whilst prices are more acutely impacting finishers, I’m conscious that some farmers may be looking to increase herd numbers. That can have a medium- long term cashflow impact, so early conversations are key to ensuring the appropriate level of facilities is agreed to support that growth and improve long-term profitability, while helping reverse some of the declines we’ve seen in the Scottish breeding herd.”

“Having stock is the backbone of any beef production business, and it has been a real privilege to support customers in the recent months, where additional facilities have been required to maintain their finished cattle numbers.

“Ultimately, our goal is to support a sustainable and viable Scottish beef industry. That means helping farmers make the right financial decisions, not just for today, but for the years ahead. Never be afraid to ask for what you actually need – not just what you think the bank might say yes to. The right facility allows you to optimise your returns and strengthen your business. It has to be viable, of course, but asking once is always easier than asking again later when things are more urgent.”