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First Milk simplifies pool pricing

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Milk: Producer pricing simplified

FIRST MILK has announced that from April 1, 2018 it will be changing its approach to regional milk pool pricing, which will see its previous payment schedules simplified to just two payment schedules – First Milk Liquid and First Milk Manufacturing.

This development has been made in response to member feedback and is fully supported by the Member Council and Board. It will see milk prices harmonised at a standard litre of 4.0% butterfat and 3.3% protein, with the April price on this basis being 26.0 ppl.

Commenting on the developments, Jim Baird, Farmer Director and Vice-Chairman, said: “Whilst in recent weeks we have seen some recovery in the market, unfortunately, the overall global dairy commodity markets remain weaker than last year, which continues to impact on our returns. We know that this price drop will be disappointing news for our members and continue to do all that we can to minimise the impact of reductions.”

He added: “This more simplified and transparent approach on milk prices reflects the requirements of the business today and is a progressive step which unites our members across the country.”

Milk Policy Manager, George Jamieson of NFU Scotland, said: “NFUS has consistently believed that First Milk, as a farmer-owned business, should as far as possible have a pricing policy that is transparent, uncomplicated and treats all members, regardless of geography and end use, the same way.

“All First Milk members contribute to the business diversity so this move is welcomed by NFUS and we congratulate it for taking this step. The strength of a co-op is in bringing members together to draw strength in a common cause. First Milk Members in Scotland have suffered from lower prices on the whole, but this move is more important than regional sensitivity as it demonstrates a commitment by First Milk to a simpler and equitable pricing model.

“NFUS has met with First Milk recently and supported this move and also discussed other areas, such as governance and ongoing price challenges. The new governance model with a new Council and Board structure and a new Chief Executive is, we believe, making progress. Ultimately it will be farmer owners who will decide if it is working for them, which will be judged on price paid back to the farmers aligned with investment and sustainability.

“On price, First Milk’s new price of 26ppl is disappointing but not out of line with other processors. The drop does not reflect the new pricing model, but the downturn in the dairy market, which NFUS believes should be at the bottom of the curve. First Milk, as a farmer owned co-op, must pay as much as it can based on its markets and costs regardless of competitors pricing, and over the last two years it is pleasing for hard pressed FM farmers to see the gap in prices between FM and competitors closing.

“Looking ahead, commentators and futures indicators are cautiously suggesting that the recent price drops may be at an end. NFUS was very clear that we believed that farmgate prices last year did not reach the levels that were justified by the market, and that the slide back to unsustainable farm gate prices has been too speedy. Milk pricing remains at the discretion of milk processors, who under intense pressure from competitors and retailers have the reassurance that they have the power to set the price they pay for their primary product and largest cost.

“This is not an acceptable nor efficient way for any supply chain to be sustained. NFUS has consistently strongly lobbied for a dairy supply chain that was fair and efficient.

“While the Grocery Code Adjudicator has declined to include the primary producer under its remit, it has acknowledged the strong evidence supplied by NFUS and NFU that dairy farmers and the supply chain needs additional measures. Defra has committed to introduce mandatory contracts with minimum standards in the dairy sector and will consult soon.

“NFUS is fully committed to this and strongly urges all with the best interests of the dairy sector to engage and support this move. This is perhaps the single biggest opportunity the dairy sector in Scotland and the UK will have to set a direction of travel that can grow a dairy sector which is competitive and sustainable.

“Mandatory contracts on their own will change nothing, but contracts which are agreed, as against imposed, covering such contentious issues as pricing, management, shared risk and reward, will make a significant difference.”

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Farming

Farming Connect’s face-to-face training back on

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DUE to the restrictions of Covid 19, although it’s not ‘training as usual’ as yet for Farming Connect, face-to-face training courses held exclusively outdoors can now resume immediately. This means that provided the Welsh Government’s current Covid 19 regulations are met and every individual involved stays two metres apart, face-to-face training is available.
Training can also be carried out in large, open sheds, barns or outbuildings, where the two metre distance rule and other Covid 19 regulations can be adhered to. Welsh Government has warned that its guidance is subject to change should there be a resurgence of the pandemic.  It is hoped that a full resumption of Farming Connect’s indoor classroom-based training will be possible in the autumn.

Kevin Thomas, director of Lantra Wales, which together with Menter a Busnes delivers Farming Connect on behalf of the Welsh Government and the European Agricultural Fund for Rural Development, welcomed the announcement.
“With all Farming Connect face to face training either fully funded or subsidised by up to 80%, it is very good news for the industry that so many face-to-face courses are now available again.

“Personal, business and technical development is critical as farmers and foresters prepare for a future outside the EU and with over 80 subjects to choose from, this could be the ideal time to learn something new or expand your knowledge on a specific subject.

“New skills will also be especially beneficial for those who have had to adapt their business model due to the changed market conditions caused by the pandemic,” said Mr. Thomas, who added that all Farming Connect training completed will be added to each trainee’s online ‘Storfa Sgiliau’ professional development records.
Registered individuals who received an approval for face-to-face training but whose courses were postponed due to the pandemic lockdown, should contact their selected training provider as soon as possible to discuss their options. Those who have not already applied for funded training can do so within the next skills application window which will be open from 09:00 on Monday 7 September until 17:00 on Friday 30 October 2020.

Farming Connect’s range of subsidised digital or ‘remote’ training has steadily increased since the pandemic first surfaced, and is now available for a number of Farming Connect courses including food safety; business-related training, poultry related training and animal health and welfare topics.

Training options within Farming Connect’s fully funded ICT and animal health training programmes can all be provided remotely, either one-to-one or via for example, a ‘virtual’ group animal health workshop. In addition, Farming Connect’s range of fully funded e-learning interactive modules has recently been refreshed and expanded to deliver more topics.
For further information about Farming Connect’s skills and lifelong learning programme, either contact your local development officer or your selected training provider. Visit www.gov.wales/farmingconnect for further information, a list of all training providers and the courses currently available.

Farming Connect, which is delivered by Menter a Busnes and Lantra, has received funding through the Welsh Government Rural Communities – Rural Development Programme 2014-2020, which is funded by the European Agricultural Fund for Rural Development and the Welsh Government.

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Farming

Wales can lead on net-zero farming

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NFU CYMRU hosted a farm visit for the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP, to demonstrate that Welsh farmers are well-placed to deliver on the industry’s net zero ambitions.

The event saw NFU Cymru launch its new document, which sets out that Welsh farmers are part of the solution to climate change.

NFU Cymru President John Davies presented the report to the Secretary of State, who also holds the role of nominated President for COP26, as part of the on farm meeting.

The visit was hosted by NFU Cymru Next Generation Group member Llŷr Jones, whose 1,600-acre sheep, beef and egg farm near Corwen also produces renewable energy to satisfy the farm’s energy needs, exporting the surplus power to the grid.

As part of his visit to Derwydd Farm, Mr Sharma was also able to learn about the scale of work carried out on the farm as part of Welsh Government’s Glastir agri-environment scheme, including creating habitats for wildlife, tree planting, protecting some 30 acres of peatland, hedgerow management and soil and grassland management.

During his visit, the BEIS Secretary planted an apple tree as an example of the environmental work the agricultural sector carries out to sequester carbon, while also providing food and aiding biodiversity.

Speaking after the visit, NFU Cymru President John Davies said: “By focussing on improving farming’s productive efficiency; improving land management and enhancing land use to capture more carbon; and boosting renewable energy and the wider bio-economy, Wales’ farmers will be able to play their part in addressing the issues brought about by climate change. By reducing carbon emissions in these ways farmers are in a strong position to achieve the industry’s goal of achieving net zero by 2040.

“I am thrilled that we were able to welcome the BEIS Secretary, Alok Sharma MP, on farm today to see Llŷr Jones’ exciting and impressive farming enterprise, which has carbon capture and renewable energy at its heart. Llŷr’s farm is just one of a wide network of farms across Wales who are harnessing innovation to reduce emissions and produce climate friendly food. These businesses are net zero leaders not just in the respect of farming, but in a wider business context.”

Alok Sharma, COP26 President and Secretary of State for Business, Energy and Industrial Strategy said: “I was very pleased to visit Llŷr Jones’ farm and see first-hand the actions being taken to mitigate climate change and support nature on their land.

“I welcome the NFU’s ambitious commitment to reach net zero by 2040, and I look forward to working across governments, business and civil society in the run up to COP26 to raise global commitments to reduce carbon emissions.”

NFU Cymru Next Generation Group member Llŷr Jones added: “I take great pride in the work we do to maintain and enhance the environment, encourage biodiversity and support the local community alongside my core role as a food producer.

“I was pleased to be able welcome the Secretary of State on farm today to show him how we’re always striving to positively influence the carbon impact of our business. I hope Mr Sharma enjoyed his visit to my north Wales hill farm and that what he has seen shows him that our industry has a vital role to play in the climate change challenge now and in the future.”

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Farming

Broadband must reach rural communities

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THE FUW has responded positively to news that there are plans to bring full fibre broadband to an additional three million homes and businesses in some of the UK’s most isolated rural communities, but stresses it must really reach them.

The connection to 3.2 million UK premises, which was given the go-ahead after an Ofcom consultation, is reported to be part of a £12bn investment by Openreach to build full fibre infrastructure to 20 million premises throughout the UK by the end of this decade.

Places set to benefit include Aberystwyth in west Wales, Millom in Cumbria, Thurso in north-east Scotland, and Ballycastle in County Antrim. Openreach is due to publish the full list of the 251 locations, referred to as Area 3, where it will build the new network. Ofcom has estimated there are 9.6 million homes and businesses situated in this final third of the UK.

Responding to the announcement, FUW Ceredigion county chairman Morys Ioan said: “The last few months have served as a stark example of how vital connectivity is. Our own Union staff, many of whom live in rural areas, have been working from home and we have continued to assist members with digital paperwork for their farm businesses. Without an internet connection this would not have been possible.

“It is really good news that this extra funding is being directed at rural communities but we must make sure that it really does go to those premises who currently are not benefitting from full fibre broadband.

“Our rural towns and villages have been left behind in the race for better and faster connectivity and it is critical for the competitiveness and viability of rural businesses, and the economy, that tangible improvements are made now.

“The FUW has stressed on many occasions that those without a connection cannot diversify their businesses, that they cannot support their children’s education and that they cannot connect readily with Government programmes for advice and support payments as they are mandated to do.”

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