NFU Scotland's livestock committee, comprising sheep and beef farmers, has warned retailers that significant shortages of product are on the horizon unless prices improve. There is concern that farmers are set to sell their breeding stock as rising costs make businesses unsustainable.

The warning follows news that the pig industry is to stage a mass rally outside the Houses of Parliament on March 4.

The rally is being organ- ised by the National Pig Association (NPA).

"We simply cannot wait until later in the year for better prices," said NPA general manager Barney Kay.

The pig industry is waging a multi-pronged campaign involving face-to-face meetings with retailers, ongoing talks with processors and national advertising to persuade shoppers to support the UK's pig farmers.

The Parliament Square rally is intended to draw political and media attention to the crisis in the pig industry caused by unprecedented increases in feed prices.

According to NPA, there is still evidence that supermarkets, shoppers, politicians and even processors do not really believe home-produced pork, bacon and ham could be all but wiped out in less than a year unless farmgate prices improve soon.

"The move out of pigs has already started and if it gathers pace, it will be too late to do anything about it," warned NPA chairman Stewart Houston.

NFUS has given much the same warning for beef a week after J Sainsbury, the UK's third-largest retail chain, was reported to have had to source emergency supplies of beef when its regular supplier ran short.

The shortage of beef is not confined to the UK. Irish cattle are becoming more difficult to source, and South American beef is facing tougher restrictions on export.

With fertiliser, feed and fuel prices all escalating, the farming union is concerned that the production of both beef and lamb could be about to suffer a drop unless prices start to reflect both the tight supply situation and rising costs.

Scottish Government figures following the census in June 2007 showed drops in both breeding sheep and cattle numbers.

The latest Scottish Agricultural Survey from Lloyds TSB forecast a 7% reduction in beef cows and calves and an 11% fall in lamb production for the current year.

Speaking after a meeting of the Livestock Committee in Edinburgh yesterday, its chairman, Kelvin Pate, said: "The major supermarkets do not want to be making the same mistakes they did in the dairy sector, where they presided over a downturn in domestic production that jeopardised their supply.

"The production costs on-farm have gone through the roof. Fertiliser prices have virtually doubled, grain prices have driven up feed costs and the impact of fuel prices has been well documented."

Government ends 10-month rule THE Scottish Government yesterday released farmers from the 10-month rule governing single farm payments, worth approximately £400m to Scotland.

Farmers and crofters are now required to have land at their disposal for a period that, at a minimum, covers the May 15 annual IACS deadline each year.

This new arrangement has been introduced following European agreement to increased flexibility in the rules governing payments under the single payment scheme.

It eradicates the 10-month rule that required farmers to possess land for almost one year to be eligible for the scheme.

That led to farmers leasing grazing land that they may only have used for a few weeks, for the entire 10-month period, reducing the availability of pasture and increasing personal outlay. The new arrangement makes land more freely available and more competitive.

Richard Lochhead, Cabinet Secretary for Rural Affairs and the Environment, said: "This change is good news for farmers and crofters as it will sit more comfortably alongside Scotland's traditional letting system.

"It is particularly good that the change can be made without compromising the basic standards of cross-compliance for the environment, food safety, animal health, and good agricultural and environmental conditions.