TESCO HAS announced that it will invest £6m over two years to help support British agriculture.
The retailer has created the new Tesco Cheese Group (TCG), which will guarantee dairy farmers an above market price for the milk they produce for Tesco’s British own-label Mild, Medium, Mature, Extra Mature, Red Leicester and Double Gloucester cheese.
The move will deliver a fair and consistent pricing model for UK farmers, and will provide them with the security and ability to plan ahead for the future.
Building on the success of the Tesco Sustainable Dairy Group (TSDG) which was established in 2007, and pays a market leading price for dairy farmers who supply Tesco with milk to the help them manage the economic volatility of the market; the new Cheese Group is the latest addition to the retailer’s programme of initiatives to support British farmers.
Commercial Director for Fresh Food Matt Simister said: “We have created this new cheese group to help us to meet customers’ needs whilst also establishing a long term sustainable livelihood for our farmers.
“By providing them with the assurance of our commitment, we are hoping to give our producers the confidence to invest so that they can deliver what customers are looking for in an efficient way.
“It is our hope that up to 200 more dairy farms across Britain who produce milk for our British cheese, in addition to the 600 producing milk through the TSDG, can work with us in partnership to create a successful and sustainable future for their production.
“For almost a decade we have worked with dairy farmers to offer the best possible quality milk , produced to the highest standards for our customers, whilst ensuring farmers receive a fair price for their milk.
“We are confident that this new initiative will enable producers, for our own-label cheese, to also plan and budget for the future; and focus on the things that matter most- meeting high animal welfare and food quality standards for customers.”
Peter Willes of Parkham Farms commented: “The new pricing model will ensure that we and our farmers are paid a premium price above that of the market reflecting the quality of our cheese and the milk that goes into it. We believe it will provide a long term and sustainable structure to help build our relationship with Tesco even further.”
Mike Gallacher, CEO of First Milk said: “This new agreement we have concluded with Tesco is about establishing a long term, progressive and sustainable supply chain partnership over the coming years. While the current context is hugely challenging in dairy, we need to continue to keep focused on the long term ensuring that we put in place business models that can deliver for our customers, consumers and producers.”
The new mechanism provides clear, equitable and transparent pricing which will be set regularly throughout the year.
The price will reflect the market and will also award farmers a two pence per litre bonus- in recognition that they must adhere to the Red Tractor assurance scheme, as well as additional Tesco welfare standards, to improve cow health and welfare.
Farming faces zero carbon challenge
AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.
Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.
Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.
According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.
“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”
Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.
“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.
“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.
“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.
“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”
HSE fees up 20%
A FEE imposed on farm businesses found to be in breach of health and safety legislation has gone up nearly 20% to £154/hr.
Since October 2012 the Health and Safety Executive has operated a cost recovery regime, which means that businesses are charged for the costs of an investigation from the point a material breach has been identified through to the point when a decision is made on enforcement action.
If you are found to be in material breach of health and safety law, you will have to pay for the time it takes the HSE to identify the breach and help you put things right. This includes investigating and taking enforcement action. This charging scheme is known as a Fee for Intervention (FFI).
Robert Gazely, farm consultant and health and safety specialist for Strutt & Parker said: “A material breach is something which an inspector considers serious enough that they need to formally write to the business requiring action to be taken. Once an inspector gives a farmer this written notification of contravention (NoC), the farmer will be expected to pay a fee.
“From 6 April 2019, the hourly charge has been increased from £129 to £154. The final bill will be based on the total amount of time it takes the HSE inspector to identify the breach and their work to help put things right.
“Of course, the primary reason for farms to be proactive in their approach to health and safety should be to protect themselves, their families and any employees.
“The number of people who are killed and injured each year on farms remains stubbornly high and the human cost of these incidents can be incalculable to those affected.
“But taking a safety-first approach should also help farm businesses to avoid a financial hit, as the HSE fees can mount up in the event of an investigation.”
Red meat gives ‘Taste of Wales’
WELSH Lamb and Welsh Beef were among the finest of Welsh foods at Wales’ largest and most prestigious food and drink trade event, Taste Wales last month.
The remarkable display of products, all under one roof, brought together a large contingent of UK and overseas buyers, including importers with a specific interest in Welsh red meat. These included a major foodservice and retail importer and distributor from Scandinavia that imports 6,000 million tonnes of meat annually from all over the world. The company is recognised for bringing tasty food experiences to Nordic dining tables.
They were invited to the event by Hybu Cig Cymru – Meat Promotion Wales (HCC) who also arranged site visits to some of Wales’ major red meat processing plants. The main aim was to impress the importers with the industry’s high ethical and environmental standards.
The visit, led by HCC’s market representatives in Scandinavia, was a platform for many productive and promising discussions.
One representative, Anette Stenebrandt said at Taste Wales: “We have a company from Sweden and Finland with us, trying to do some new business in the Nordic-speaking countries. This is really a fantastic fair and we have enjoyed it a lot.”
Her colleague Jakob True added: “This is our first time here at this amazing event, it’s a great opportunity to meet a lot of Welsh producers, particularly Welsh Lamb which is world-class, we know. We’ll go back to Scandinavia with a lot of good new leads and hopefully bring a lot of business to Wales.”
HCC’s Market Development Manager, Rhys Llywelyn said: “Many of the buyers we met at Taste Wales, including the Scandinavians, showed a significant interest in Welsh Lamb and were impressed by the whole package – from the story of producing Welsh Lamb to the processing techniques, the taste and texture.
“Others also expressed a keen interest in forging deals with the industry, including a Japanese department store, a major buyer from Hong Kong and a representative from Qatar. This bodes well for the future, especially as Brexit uncertainty is set to continue in light of the extension on Article 50.”
In recent months, HCC has undertaken a strategic GB marketing drive to encourage growth and recognition of our quality produce on British soil.
HCC’s UK Market Development Executive, Emily Davies said: “Our presence at Taste Wales also included concentrating our efforts on promoting Welsh Lamb in the domestic market. We met a number of foodservice companies, retailers and executive chefs and discussed Welsh red meat opportunities with meal-kit companies and online retailers. We also launched a new tool-kit for retailers which highlights the ways in which we can work with them to promote Welsh Lamb and Beef.”
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