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Farming

Market volatility hitting family farms

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REBECCA EVANS AM – Deputy Minister for Farms and Food, visited the Haverfordwest Creamery to better understand the challenges facing the dairy sector and the plans that farmer-owned First Milk have in place for the future.
Haverfordwest Creamery processes the milk from nearly 300 local dairy farmers, who are all co-owners of the factory and located within a radius of 50 miles.
After completing a factory tour, which included speaking with local employees and a local farmer representative, the Deputy Minister said:
“In the last 12 months we have witnessed volatility and low prices in dairy markets around the world, which has had a direct impact on family farms across Wales. We are working closely with the industry, through our Dairy Task Force, to increase the demand and add value for Welsh milk and milk products.
“I believe that well-invested farmer-owned facilities, such as this creamery in Haverfordwest, are vital to the long-term vision of an efficient and sustainable dairy sector in Wales. One which delivers benefits for the wider rural economy.”
First Milk’s site director at the creamery, Paul Rowe commented: “Haverfordwest Creamery creates approximately £70 million of economic activity per year in West Wales. It processes over 260 million litres of local milk and turns it into 28,000 tonnes of award-winning cheeses, with over 100 local people employed in our cheese making and distribution operations.
“Haverfordwest Creamery is one of the most efficient in the UK and a large proportion of the investments we have made, over the last few years, have only been possible with the support of the Welsh government.
“Dairy markets are very tough right now and dealing with this is our immediate priority. However over the longer-term we firmly believe that the Haverfordwest Creamery is well placed to take advantage of the growing global demand for dairy products. We will continue to work closely with the Welsh government in developing these opportunities for the benefit of our local farming members and owners.”
Addressing the annual DairyCo conference at the University of Aberystwyth the following day (Friday, March 6), Rebecca Evans, announced the completion of the Welsh Dairy Review.
In October, the Deputy Minister announced she was commissioning an independent review of the Welsh dairy sector. She asked Andy Richardson, a member of the Dairy Task Force for Wales, to lead the review, which was commissioned in response to difficulties faced by dairy farmers last autumn, as well as an opportunity to review the voluntary code which had been in operation for two years.
She recently received the final report from Mr Richardson, who categorised his recommendations under five key headings: Leadership, Market Focus, Efficiency, Knowledge and Skills and the Environment.
The Deputy Minister said: “One of the things that has particularly concerned me about the recent cut in the price of milk is the impact on confidence and the possible knock-on effect this could have on investment within the sector.
“Andy Richardson’s review suggests that the mood, both amongst farmers and processors, may be more positive than perhaps is being portrayed and that is good news – without continued investment the future will look very bleak.
“As the price paid for milk continues to fall, many farmers and processors in Wales continue to operate under extremely challenging conditions on a daily basis, as the industry faces a very difficult period, one fundamentally driven by an over-supply.
“I am however confident there is a secure and profitable future for dairy in Wales. As I have said many times before, we have the land, the animals, the labour and the infrastructure. Evident from Andy’s review is that we also have the commitment, the passion and the willingness to change and to adapt that will see us through our current difficulties.
“It is so important to me that we continue to support the sector by taking on board the views of those working within it, and help to grasp the opportunities that exist.
“Following discussions with farmers and processors across Wales, Andy has been able to provide a vision of the future for the whole of the dairy sector which sets the direction for a more sustainable industry in the future.
“I would like to thank Andy for his work, undertaken in such a short period of time. I expect to publish the report, alongside the Welsh Government’s formal response, in the form of an action plan once I have given it due consideration.”
The Dairy Review was intended to draw on the work already undertaken by the Dairy Task Force but looked wider, taking views from all parts of the supply chain. It also considered what support the RDP 2014 – 2020 may provide to dairy farmers and the milk processing sector in Wales.
Meanwhile at Carmarthenshire’s recent NFU-Cymru conference, NFU President Meurig Raymond assured union members that the NFU was doing it all it can to assist its milk producing members get through the current price volatility when he spoke at the recent Carmarthenshire NFU Cymru conference.
Mr Raymond explained helping farmers within the milk industry was the Union’s top priority at present. He said he has met with the leading banks to ask them to help farmers at this difficult time. He has met with Government to discuss tax concessions. They’ve given evidence to the Efra Committee asking for more powers to the Groceries Code Adjudicator. The NFU has spoken to milk buyers, particularly First Milk. Mr Raymond also told those present how he has personally had some very difficult meetings with the major retailers and has had some assurances that they will stock more British dairy products in the future.
Mr Raymond said, “We are grateful to shoppers for the positive messages we’ve received as dairy producers and pleased that so many consumers have come out and backed British dairy farmers at this time. We’ve been inundated on social media in particular by shoppers wanting to know where they should buy their dairy products to help us most. In response we have said that shoppers have to check the labels to make sure they are definitely buying British produce – not something that looks British. The Red Tractor mark is a good quick indicator. I would like to take this opportunity to thank the British public for all their support at this time.”

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Farming

Payment commitment sought from minister

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NFU CYMRU has asked the Minister for Environment, Energy and Rural Affairs to make an early commitment to maintaining the Basic Payment Scheme in Wales for 2021.
In a meeting this week NFU Cymru President John Davies asked the Minister, Lesley Griffiths AM, to commit to maintaining the Basic Payment Scheme unchanged for 2021.
Speaking after the meeting, John Davies said: “The events in Westminster these last few days mean that our future relationship with the EU remains as uncertain as it has ever been, with the prospect of a general election in the not too distant future, this means further political upheaval, and by extension more uncertainty. The fact that the UK Government’s Agriculture Bill was not carried forward when parliament was prorogued means that the intended legal basis for setting Welsh agricultural policy has now also disappeared, and we are now essentially back to square one.
“At the end of last year, Welsh Government announced that the Basic Payment Scheme would remain unchanged in 2020; we welcomed that announcement as it offered Welsh farming some stability at a critical time. The uncertainty in the intervening period has only intensified, NFU Cymru considers the possibility of a disorderly Brexit to be a very live possibility, either after a failure to reach an agreement at the end of any extended Article 50 period, or alternatively if the UK fails to agree on a future trading relationship with the EU27 during the transition period.
“There are many factors completely outside of our control which considered individually or collectively would have a very detrimental impact on Welsh agriculture. NFU Cymru is very much of the view that this calls for a cautious and restrained approach from the Welsh Government when it comes to developing future agricultural policy. We would urge Welsh Government to take its time and not to hasten to move away from the present arrangements until we have a far clearer picture of the sort of future trading relationship we will have with the EU27.
“We fully respect that the timing and nature of Brexit, the general election and the fate of the Agriculture Bill are all outside the hands of Welsh Government, but what we do ask for is the support of Welsh Government on the areas that sit within its remit. In our meeting with the Minister, we have asked if she will make an early commitment to the continuation of the BPS unchanged for 2021.
“We have also asked the Minister to ensure that the additional £5.2 million per year for the next two years made as part of the UK Government’s response to the Lord Bew review last month is used as a top-up to the BPS. This funding has been allocated to Wales because average Pillar 1 payments have historically been lower in Wales than in some other parts of the UK. We therefore firmly believe that as the Lord Bew review was about correcting this matter then the additional money should be made as a top-up to the BPS and not spent elsewhere.”

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Farming

Public want food standards maintained post-Brexit

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THE GOVERNMENT should ensure that all imported food meets the same high animal welfare and environmental standards in place on British farms.
That’s the overwhelming view of the public according to new research carried out by ComRes on behalf of the British Guild of Agricultural Journalists (BGAJ).
ComRes surveyed the public in September and found 84% support the view that imports should match British standards as Brexit threatens to open the door to imports from low cost producing, de-regulated markets across the globe.
The study found that just 16% would buy food they know is produced to lower animal welfare standards if it was cheaper than food produced to a high standard.
BGAJ President Baroness Rosie Boycott said: “The results of this study are a stark reminder to the government that the public values the high standards of British farming.
“There will always be countries able to produce cheaper food than Britain but it always comes at a cost. It could be the safety of the food, the farmer, an animal or the environment.
“With Brexit on the horizon, we’re on the brink of potentially seeing lower quality food imports flooding into the country.
“The survey resoundingly shows there’s no appetite for it and it’s the responsibility of government and the entire supply chain to put the safeguards in place to protect both British farmers and the consumer, whose heads may still be turned by attractive price deals in tough economic conditions, despite how they have responded.”
The results of the study come at a critical time for British agriculture – a sector which stands to lose more than most if the protection provided by the European Union’s single market is not replicated post-Brexit.
British standards of food and farming are among the best in the world thanks to decades of progress in the areas of production that matter most to consumers.
Many countries which can produce food cheaper than Britain often use production methods which are illegal here and across Europe; chlorine-washed chicken and hormone-injected beef being two well-reported examples.
Professor of Food Policy at the University of London, Tim Lang, said: “An overwhelming 84% want imported food to be of the same standard as home-produced food. Gung-ho supporters of yoking the UK to the USA post-Brexit should note this
“The survey suggests the UK public almost certainly recognises the need for the UK farming to tick lots of boxes. It’s got the message that farming is multi-functional. But have the politicians?”
FOOD PRODUCTION
84% of GB adults agree the government should ensure all imported food meets the same environmental and animal welfare standards as food produced in the UK. Only 2% disagree
A majority (53%) of GB adults would not buy food that is produced to lower animal welfare standards if it’s cheaper than food produced to a high standard of animal welfare. Only around one in six (16%) agree
Younger people are less likely to disagree with the statement than older people – it seems attitude to the trade-off between animal welfare and price swings towards animal welfare the older we get (45% disagree 18-34; 52% 35-54; 61% 55+)
62% of the public agree that UK farmers should receive financial support from the taxpayer to ensure a continued supply of food produced by British farmers post-Brexit, compared to just one in ten (10%) who disagree. 68 per cent of rural and 61 per cent of urban respondents agreed
Two in five (39%) GB adults agree that a UK farmer’s primary purpose should be to produce food rather than carry out environmental work, although just under a third (29%) disagree. 33% were not clear (26% neither, 7% don’t know)
CLIMATE CHANGE AND TECHNOLOGY
62% of the public agree farmers have an important role to play in generating renewable electricity from technologies such as wind turbines and solar panels, while around one in twelve (8%) disagree
Just under half (48%) of GB adults agree that a climate change levy should be charged on food with a higher carbon footprint, with the proceeds spent on encouraging carbon-friendly farming methods, compared to fewer than one in five (17%) who disagree
34% agree new plant-breeding technologies, such as genetically modified and gene-edited crops, should be used to grow food in the UK, compared to more than a quarter (27%) who disagree. Young people aged 18-24 are more likely to agree (46%) with the statement than any other age group
Retail and UK marketplace
Only 24% agree UK farmers receive a fair share of the profits made by retailers on the food that they produce, compared to more than a third (36%) who disagree. Rural respondents were more likely to disagree than urban respondents (43% rural vs 35% urban)
ACCESS TO THE COUNTRYSIDE
Almost two thirds (62%) of GB adults agree the public has adequate access to the UK countryside in terms of rights of way and footpaths, compared to just one in 10 (11%) who disagree. Londoners and those in the West Midlands were the least likely to agree with the statement (54% and 55% respectively), whereas those in Wales and the North East were the most likely to agree (both 70%)
Four in five (79%) adults are proud of the British countryside and the rural communities which sustain it, compared to just 3% who disagree. While urban respondents still have a high level of agreement with the statement (77%), almost nine in ten (88%) of rural respondents agree

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Farming

NFU plans for New Horizons

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NFU CYMRU’s annual conference takes place on Thursday, November 7, at 10 am with another stellar line-up of speakers.
To be held at the Metropole Hotel, Llandrindod Wells, the conference, titled, Welsh Farming: New Horizons, will focus on future opportunities for Welsh agriculture.
NFU Cymru President, John Davies said: “We are, once again, looking forward to welcoming hundreds of members to our annual conference. With so much uncertainty within the industry at the moment, this conference will be an opportunity for members to look beyond the horizon line towards future opportunities for the industry.
“Our annual conference has continued to grow and become the must-attend event of its kind in Wales, consistently attracting world-class speakers – and this year is no exception.
“At NFU Cymru we are both passionate and ambitious about the future of Welsh food and farming. We believe that given the right support from the government, we can continue to develop a profitable, productive and progressive agricultural industry. I hope that our expert line-up of speakers will help inspire members and allow them to head home with some thoughts and ideas on how to take their own farming businesses forward.
“We will also use the conference to present the first-ever NFU Cymru Sustainable Agriculture Award, kindly sponsored by Wynnstay. This award seeks to recognise the unparalleled contribution Welsh farming enterprises make to the economic, environmental, social and cultural well-being of Wales, and I’m very much looking forward to presenting this award to the very worthy winner.”
Speakers on the day include:
Lesley Griffiths AM, Minister for Environment, Energy and Rural Affairs, Welsh Government
Heather Hancock DL LVO, Chair, Food Standards Agency
Professor Robert Pickard, Food and Nutrition Expert
Professor Michael Lee, Sustainable Agriculture Expert
Dmitry Grozoubinski, Founder and Lead Trainer, ExplainTrade.com
Breffni Carpenter, Agriculture Counsellor, Permanent Representation of Ireland to the European Union
Sam Watson Jones, Co-Founder, Small Robot Company
Dr Andrea Graham, Head of Policy Services, NFU and ‘The Future of Food 2040’ Author
Campbell Mauchan, Head of UK Operations, AgriWebb

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