Connect with us
Advertisement
Advertisement

Farming

Farm incomes fall

Published

on

THE VULNERABILITY of Welsh agriculture has been highlighted today with the latest Welsh Government Farm Income forecasts predicting a decline in the profitability of farming across all sectors.

The figures, based on Farm Business Survey results for 2013- 2014, show that average farm business income across ‘All Farm Types’ is forecast to decrease from £29,000 in 2013-2014 to £22,200 in 2014-2015 – a decline of around 24%.

For dairy farms, average farm business income is forecast to decrease by around 23%; cattle and sheep (LFA) farms are forecast to decrease by 22% to £15,000 while farm business incomes on cattle and sheep (lowland) farms are expected to decline from £28,600 to £23,100.

NFU Cymru President Stephen James said: “The industry saw falling farm-gate prices across all commodities during 2014. These figures provide the first official indication of the financial impact on Welsh farm businesses and highlight the cash-flow challenges that farmers are likely to face in the coming months. These are challenging times across all sectors – market volatility, a strong pound and significant cuts in direct payments as a result of the pillar transfer decision have taken a heavy toll on the industry over the past 12 months. The support of Government, banks and the supply chain is crucial to help us come through these difficult times.”

Mr James continued: “The GVA (Gross Value Added) figures from agriculture show increases of around 15% from £325.2m in 2013 to £374.3m in 2014. NFU Cymru believes this provides strong evidence of the positive contribution that agriculture makes to the economy of Wales. The opportunities for Welsh farming are clear – in the longer term global and domestic demand for food is set to increase. But for Welsh farmers and the economy of Wales to benefit, we need Welsh Government to establish the right conditions through its policy and regulatory framework. The Rural Development Plan 2014-2020 provides an immediate opportunity to put in place a suite of measures that support on-farm investment and enhance the competitiveness of agriculture and we look forward to the implementation of the schemes over the coming months.”

FUW President Emyr Jones said: “The combined impact of reduced farmgate prices, the Welsh Government’s 15% Pillar Transfer, a reduced CAP budget and a Single Payment exchange rate of £0.7773/€1 has had a catastrophic impact on farm incomes. The fact that sterling is continuing to strengthen against the Euro means there is ongoing pressure on prices, with the situation in relation to Greece not helping.”

Mr Jones said that the Union’s vociferous objection to the reduction of direct farm payments by 15% (the ‘15% pillar transfer’) was well publicised, but the decision could not now be overturned.

“We cannot control the exchange rate, and despite our fierce lobbying against it, the decision to transfer 15% has been made. The only area where there is flexibility to act is in terms of ensuring Rural Development funds are directed at bringing farm incomes back up, and not squandered.”

Mr Jones said that further changes to direct payment rates which would be decided upon over the coming months would also add to uncertainty and disruption for the industry, and would inevitably put further downwards pressure on many farm incomes.

“The figures announced today should come as a wake-up call to all those within Welsh Government who have not yet recognised the need for an RDP which is totally focussed on boosting the efficiency and profitability of farms.”

Plaid Cymru Parliamentary Leader, Elfyn Llwyd MP, told a meeting of the NFU in Birmingham: “We have just celebrated the anniversary of Magna Carta and have been reminded of the barons or the ‘over-mighty subjects’. Today’s ‘over-mighty subjects’ are the major supermarkets who seem to get away with undermining agriculture at every turn. I don’t know why the political establishment does not take them on and the need to do so has never been so urgent. The Groceries Code Adjudicator appears to me to be toothless. It needs to be beefed up to ensure that it encompasses milk production but also all primary producers so that they are not consistently undermined in the way that is happening.”

Urging action to support milk producers and secure a sustainable future for farming, he added: “We need to also consider a form of intervention to ensure adequate pricing of milk because for the first time in generations, the number of milk producers has fallen below 10,000 and continues to fall. We also need to ensure that rural development programme funding is used as effectively as possible, particularly targeting on-farm investment to improve skills, strengthen infrastructure and assist diversification where relevant. Farming remains a hugely important industry which holds together the fabric of rural society. We must ensure its future development and expansion for the good of everyone.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Farming

Johnson announces end to lamb export ban ‘soon’

Published

on

By

WELSH farming industry bodies have welcomed the prospect of Welsh Lamb exports to the US being lifted soon.
The Prime Minister claimed the ban would end after meeting with President Biden in Washington last week.
The potential market for PGI Welsh Lamb in the USA has been estimated to be worth as much as £20million a year within five years of the export restrictions being removed.

LIFTING THE BAN

The ban on British lamb to the USA has been in place since 1996 following an outbreak of bovine spongiform encephalopathy (BSE).

The ban was extended in some countries to sheepmeat because a related sheep disease (scrapie) belongs to the same family of diseases.

HCC Chief Executive Gwyn Howells said, “Achieving market access for lamb to the USA has been a long road, and it looks as if we’re nearly at the end of the journey.

“The ban, brought in back in 1996, has not been necessary or justifiable for many years. But it’s taken a long effort and much technical work to overcome the various administrative hurdles.

“There is a promising market for high-quality Welsh Lamb in the USA, particularly in the hotel and restaurant trade on the east coast.

“Research has shown that the trade could be worth £20million a year for the sector if we can achieve access and work on developing the market.

“We look forward to hearing the details behind the announcement and are ready to grasp the opportunity should it arise.”

NEWS A BOOST FOR WELSH AGRICULTURE

Welsh Conservative and Shadow Rural Affairs Minister Samuel Kurtz MS said: “Farmers across Wales will welcome the news that the US has lifted the ban on the imports of British lamb.
“It’s now imperative that both the UK and Welsh Governments work in tandem to promote the benefits of Welsh lamb so that its market potential can be fulfilled.”

NFU Cymru has welcomed reports that positive progress is being made on lifting a long-standing ban
NFU Cymru Livestock Board Chairman Wyn Evans said: “After being shut out of the US market for over 30 years, today’s reports that Welsh sheep farmers may soon be able to access this potentially lucrative marketplace are welcome news for the sector.

“We certainly want to see this ban lifted so that trade can resume as soon as possible.

“Now this vital trade avenue appears to be a step closer to opening, it is crucial the UK Government and the authorities work alongside the whole supply chain so that we are in a position to supply product into the US as soon as the ban is lifted.

“We now wait with interest to hear more news from the US Secretary of State for Agriculture to confirm the reports that we have received following the Prime Minister’s comments.”

VITAL TO OPEN MORE EXPORT OPPORTUNITIES

The Farmers’ Union of Wales also welcomed the news.
The FUW has long discussed the prospect of lifting the unjustified ban with the USDA in various meetings over the past decade.

Speaking from his Carmarthenshire sheep farm, FUW Deputy President Ian Rickman said: “Now more than ever, we need to explore other export markets while also protecting our long-established markets in Europe.
“The US market is one we are keen to develop much stronger relationships with and the news that this ban could soon be lifted is most welcome news for our sheep industry.”
NSA Chief Executive Phil Stocker commented: “We are delighted about the announcement that the ban is to be lifted – the UK sheep industry has been waiting for this for many years.
“The sheep industry in the UK has clear potential to grow further, but any expansion must be market and demand-led.

“The UK is the third-largest exporter of sheepmeat globally, telling us that we are good at producing sheepmeat and that our supply chains are efficient and able to deliver.
“This creates another opportunity for our industry to maximise trade opportunities, and we have always seen the US as being a potentially significant market.

“After the domestic market, the EU is still our largest export market and is on our doorstep. However, access is more difficult than it was when we were part of the EU. It’s essential to maintain EU access but it is also important to work on any market that gives us future potential.”

Mr Stocker highlighted other benefits: “We shouldn’t expect to see any sudden surge in volumes going to the US, but we do know there is strong demand for UK sheep genetics – semen and embryos. Many British sheep breeds are in the US but are numerically too small to have a strong gene pool, so genetics demand is strong.
“In addition, with sheepmeat consumption being very low in the US we believe we can help stimulate interest in lamb and quality mutton through exporting high quality British sheepmeat that reinspires interest in the product and helps the US sheep industry to build further.”

Continue Reading

Farming

No badger cull but bTB strategy change on cards

Published

on

THE WELSH GOVERNMENT has ruled out controlling the spread of bovine TB through a targeted cull in areas where the disease is endemic.

A spokesperson confirmed the Welsh Government’s position ahead of the publication of a significant review of its TB eradication strategy.

The review, led by Professor Glyn Hewinson of Aberystwyth University, is likely to focus on cattle vaccination and the use of improved tests for TB bacteria in cattle.

False positives for BTB can only be detected after death by a post-mortem.

BOVINE TB DEVASTATES PEMBROKESHIRE FARMS

The persistence of the BTB bacteria in the soil and in the protected wild mammal population, particularly badgers, creates a perfect storm for farmers in our county.

The area around the shared borders of North Pembrokeshire, the Teifi Valley, and North West Carmarthen is a long-standing hotspot for the disease.

Farmers in that area have suffered disproportionate and repeated losses throughout the Welsh Government’s different approaches to eradicating BTB.

When the disease is detected in a herd, it is standard practice for all of it to be slaughtered. Although farmers are partly compensated for their loss, the loss of their stock leaves farmers with long-term problems for their business’s recovery.Herds’ loss and slaughter are linked closely to mental health problems among farmers and farming families. The cost of BTB is much greater than balancing profit and loss.

CURRENT PROGRAMME ISN’T WORKING

Local MS Sam Kurtz, who comes from a farming family, told The Herald: “Since the 1970s, bovine TB has been a dark cloud hanging over our agricultural industry

“While it may not have had the impact on the public’s psyche as the Foot and Mouth crisis had in the early 2000s, bovine TB has been a long and heavy burden on Welsh farmers, with over 20,000 cattle killed in the last 2 years.
“What the Welsh Government have in terms of a policy is the repetition of an outdated and inaccurate testing regime followed by stringent and debilitating restrictions on farmers.

“It is clear, from the latest data showing new bovine TB cases in Wales have risen by 3%, that the Welsh Government’s current eradication programme is simply not working.

“Throughout the pandemic, our farmers have worked 24/7 to keep food on our tables, despite being laboured with the stresses and concerns of routine TB testing.  

“The industry is now desperate for some urgency and a change in strategy.

“A new testing regime, Enferplex, delivers superior accuracy than the current test.

“While it is being undertaken in small pockets of Wales, a dedicated pilot scheme of this new test to collect hard data must be a priority for this Welsh Government.”

The Enferplex Bovine TB antibody test identifies the presence of bovine tuberculosis. Used in conjunction with existing tests, it is far more accurate than current tests in validating positive diagnoses.

EFFECTIVE PROGRAMME MUST TACKLE ALL ASPECTS OF DISEASE

The FUW believes that any future changes to the bTB eradication programme should closely follow the science to develop an effective eradication programme covering all aspects of the disease in Wales.

An FUW spokesperson told us: “Bovine TB continues to suffocate businesses in the high and intermediate areas of infection in Wales and continues to have a significant detrimental effect on the mental health and well-being of our farmers and their families.

“September’s Quarterly Publication of National Statistics on the incidence and prevalence of tuberculosis in Cattle in Great Britain shows variable results, with no year-on-year change in the number of herds that are not TB free in the High West Area of Wales, and a 26% rise in the number of herds not TB free in the Intermediate North Area.
“Such results continue to devastate businesses that have made massive sacrifices

to comply with the Welsh Government’s costly and burdensome bovine TB eradication programme.  
“The FUW welcomes further research on this devastating disease as part of a science led and pragmatic approach to TB control in Wales. We look forward to the publication of the next TB review and will be discussing the findings of the review at all relevant political and policy levels.”

NFU CYMRU: WELCOME REVIEW BUT URGE OPEN MIND ON CULL

NFU Cymru County Adviser for Pembrokeshire and Ceredigion, Peter Howells, said: “It is concerning to see the latest bovine TB statistics published by Defra that show a rise in bovine TB incidents and the loss of 10,775 animals in Wales to this dreadful disease in the year ending June 21. This once again highlights that bovine TB continues to wreak havoc on the cattle industry in Wales.
“In October 2017, we saw the Welsh Government introduce a regionalised approach to tackling the disease in Wales.

NFU Cymru is supportive of an approach that allows for the appropriate measures to be introduced depending on the circumstances.

In Low TB areas of Wales, we must do all we can to keep the disease out.  In areas of the country, such as South West Wales, where the evidence suggests that both cattle and badgers suffer from this disease, we believe that the disease will only be brought under control through a comprehensive package of measures that tackles the infection in both populations.
“We continue to urge Welsh Government to take note of the evidence published from England. A peer-reviewed scientific report examining the effectiveness of badger culling in reducing outbreaks of TB in cattle has shown positive results in England.

“The Defra-commissioned report revealed an average reduction in the incidence of bovine TB of at least 40% in areas of England that have completed at least four years of culling.
“Just across the border in Gloucestershire, the report has shown a 66% decline in new TB breakdowns.
“NFU Cymru continues to use every opportunity to raise with the Minister for Rural Affairs our concerns for the emotional and financial impact this disease causes to farming families. Earlier this summer, we wrote directly to the First Minister on this matter.

“We are aware that the Minister has said she will make a statement on the TB programme later this autumn and that Professor Hewinson is currently carrying out an internal review of the programme. We are pleased that the Minister has asked someone of Professor Hewinson’s experience and expertise to carry out the review and we await with interest the publication of the review.”

WG: EVIDENCE OF CULL’S EFFECTIVENESS INCONCLUSIVE

A Welsh Government spokesperson said: “TB in cattle is a huge challenge for all concerned and distressing for farmers who have to deal with it in their herds. Part of the solution to the problem is people’s willingness to work together, both in Government and the industry.  

“The Wales TB Eradication programme is built on co-operation, with three regional eradication boards working at a local level to ensure policies are developed collaboratively and communicated effectively.
“We have outlined in our Programme for Government we will not permit the culling of badgers as part of measures to deal with bovine TB.  

“Recent scientific studies did not provide conclusive evidence that culling badgers alone would reduce incidence levels in cattle herds.

“It has been proven that more infection is transmitted within species than between species, which suggests that controlling transmission among cattle is a priority in the strategy for eliminating TB.

“When the Intensive Action Area (IAA) was established in 2010 with additional measures introduced into the High West TB area, 27.1% of herds were restricted due to TB control. At the end of June 2021, 14.5% of herds were restricted, constituting a decrease in herd prevalence between then and now of 46%.

“We are committed to undertaking a review of the current TB eradication programme, and we will announce a refreshed approach later this year.

“All aspects of the programme will be considered, and we will undertake a consultation in the Autumn to inform future policy.”

VACCINATION AND THE FUTURE

The irony is that a largely effective vaccine already exists.

The BCG vaccination given to humans is 70% effective when used to immunise cattle. The vaccine uses the TB bacteria to provoke an immune response. Once it’s used, however, tests cannot detect the difference between cattle successfully inoculated and infected cattle.

Therefore, vaccinating cows with BCG is banned in most countries, enabling vets to continue to use the PPD skin test to diagnose the disease in cattle.

Scientists at the University of Surrey believe they could have a solution to that problem.

By manipulating the disease’s genetic make-up, the scientists created a BCG-minus strain. They then developed a new synthetic skin test that, like existing tests, will be positive for animals that have been exposed to TB. Unlike those tests, however, the new test will show a negative result for animals that have been vaccinated with the BCG-minus strain.

Johnjoe McFadden, Professor of Molecular Genetics at the University of Surrey, said: “To control the spread of bovine TB, effective vaccination and accurate early diagnosis of the disease are critical. This new vaccine provides protection against bovine TB. It will help fight against this deadly disease that infects over 50 million cattle worldwide and is economically devastating to farmers.

“The next stage of our work will be to demonstrate that both synthetic skin test and BCG-minus vaccine works in cattle herds. If they do, then it will be possible to vaccinate cattle against TB yet retain the value of skin test for diagnosis.”

Continue Reading

Farming

Economic value of red meat sector rises

Published

on

HE VALUE of the iconic beef, lamb and pork sectors to the Welsh economy rose in 2020, as consumers turned to local, sustainable, quality food during the COVID pandemic, according to analysis by Hybu Cig Cymru – Meat Promotion Wales (HCC).New figures from the Welsh Government ‘Aggregate Agricultural Output and Income’ report show that the total value of agricultural output in Wales for 2020 is projected to stand at £1.7billion – a 6.2% (or £99 million) increase on the provisional figure for 2019.


Cattle and sheep account for 44% of this total at £750million; the highest proportion recorded since 2016. The agricultural output value for Wales’s pig sector also increased (by 34.3% or £2 million) to a value of £8 million.
The figures reflect the strength of the livestock sector in Wales and sit in contrast to Total Income From Farming (TIFF) figures for the UK as a whole newly released by Defra. Although the TIFF figures are a different form of measuring farm production, the UK data concurs that the livestock sector has had a strong year, but in other parts of Britain, this was more than offset by poor harvests in the arable sector.


Demand for beef and lamb have been strong in the domestic retail market since the immediate aftermath of the first COVID lockdown in spring 2020. After initial market volatility, marketing campaigns by HCC and other bodies encouraged consumers to recreate restaurant meals at home.


Over the past 12 months, domestic retail sales of lamb and beef have trended consistently higher, with spending on lamb 20% higher than the previous year. Sales at independent high street butchers are also strong.
Research shows many demographic groups, including families with children, buying more beef and lamb than previously, and turning to quality home-grown produce.


HCC Data Analyst Glesni Phillips said, “The strong demand for red meat from the domestic consumer has helped drive market prices for beef and lamb at Welsh livestock markets in the second half of 2020 and into the early months of 2021.


“It’s no surprise, therefore, to see that the overall value of the industry is projected to have grown. We have seen inflation in the costs on farmers, which offset some of the gains from improved market price; however, it’s heartening to see consumers’ support for quality Welsh produce.“Welsh Lamb and Welsh Beef remain key drivers of our rural economy, and given their excellent brand reputation, they act as flagship products for the growing Welsh food and drink sector.”Further analysis of the aggregate output and income figures for Welsh farms are available in HCC’s latest monthly market bulletin.

Continue Reading

Trending

FOLLOW US ON FACEBOOK