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Farming

First Milk prices cause concern

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Troubled co-operative: First Milk.

Troubled co-operative: First Milk.

THE ANNOUNCEMENT of further price cuts by dairy co-operative First Milk has caused consternation amongst its members. Hardest hit will be the liquid milk or balancing suppliers who will see a 1.2ppl decrease taking their June A volume milk price to 19.3ppl.

The co-operative say they will bring in end product pricing from June meaning that the prices paid to their members across the UK will differ according to geographical location and end use. First Milk members supplying the Haverfordwest creamery in Pembrokeshire will be the only ones to see a positive movement of 0.3ppl with all others seeing a price decrease from June.

A programme of significant cost reductions across the business announced by new First Milk CEO Mike Gallacher includes proposals for up to 70 job losses and a new approach to milk pricing within its milk fields that links local milk prices to the value generated.

As part of the ‘turnaround’ plan, First Milk is cutting 70 jobs mainly at its HQ and in support functions while there will be a new focus on UK contracts and customers and less focus on exports.

NFU Cymru Milk Board Chairman Aled Jones said: “While I understand that new Chief Executive Mike Gallacher and the First Milk board have had to take drastic and decisive action to secure the longer term sustainability of the business, this news on milk prices brings little or no comfort to some members across Wales and England who have supported them over the years. The headline A price of 19.3ppl for the balancing supply doesn’t take into account the 2ppl capital investment requirement that came into force in January nor the fact that this is only paid for 80 per cent of the milk supplied. The actual milk price received by these farmers will be far worse and I would implore on First Milk to do all they can to increase both the A and B price for these farmers. We all want to see a secure future for First Milk but this should not be done at the expense of their members. I, and my board, have spoken to a number of them who feel they have no other option but to leave the industry. First Milk’s management team need to confirm at the forthcoming member meetings the whole range of actions that they are doing to put the business on a more secure footing. This must not just be about cutting the milk price. We welcome the announcement today of an independent review of the business – the recommendations are to be presented to members before the summer. We look forward to this painting a full and clear picture of what has happened in recent times and help explain the rationale for the turnaround strategy. We have already been in touch with First Milk and dialogue will continue to understand the rationale behind this latest price movement, and to seek clarity on their long term plan.”

A statement from First Milk read: ‘To ensure that the business is financially robust through the restructuring process, the First Milk Board has agreed a £3.3m reduction in member payments’.

Mike Gallacher, CEO, said: “None of the decisions announced today have been taken lightly, but they are necessary steps in the process of rebuilding a secure and stable future for First Milk, its members and its employees. As a team, our aim will be to provide every support for those impacted in the coming months. First Milk plays an important role in many rural communities across the UK and continues to value the support it has received from all our stakeholders. Our strategy is aimed at continuing to restore the health of First Milk so that we can support those communities through delivering better prices for their milk.”

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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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