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Farming

New figures show buoyant lamb exports​

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Rising: Sheepmeat exports up 14%

THE LATEST UK trade figures show that 2017 was a bumper year for lamb exports, but also highlight the industry’s reliance on EU markets, according to Welsh red meat body Hybu Cig Cymru – Meat Promotion Wales (HCC).

Newly released export data from HMRC show that the volume of sheepmeat exported was up by 14% over 2017, totalling 89,000 tonnes excluding offal and skins. The figures represent the UK-wide picture, but Wales is a major component of the success story. Wales is home to around a third of the British sheep industry and premium exports are driven by the iconic PGI Welsh Lamb brand.

The value of this business to the UK was over £384 million, rising from £302 million in 2015 and £327 million in 2016.

The statistics reveal major increases in the volume of lamb exported to a number of countries including Germany (up 25%), Belgium (up 16%), Italy (up 13%) and Denmark (up 13%).

While there were increases in exports to several non-EU markets such as Hong Kong, Switzerland and Canada, the European Union is still the destination for nearly 94% of the lamb exported from Britain.

HCC Market Development Manager Rhys Llywelyn warned that continued free trade with Europe would be needed to sustain this export success. At the beginning of February HCC completed a three-year programme, part-funded by the EU, to promote PGI Welsh Lamb in a number of key overseas markets.

“Over the past three years we’ve worked hand-in-hand with processors to promote Welsh Lamb and earn new business, so it’s excellent to see export growth in markets we’ve targeted such as Germany, Denmark and Italy,” said Rhys.

“We’re looking to consolidate and build on this growth,” he added, “however our current exports are helped by a competitive currency rate and the ability to trade without tariffs across a continent of 500 million consumers.”

“Exports to newer markets further afield are up, but are very small compared with countries such as France and Germany where the PGI Welsh Lamb brand is well established, and we still don’t have access to trade with a number of key countries such as the USA and China,” said Rhys.

Rhys explained the importance of exports for the Welsh Lamb industry. “We export over a third of our lamb each year, and much more than that at times of peak production,” he said. “UK consumption is static at best, and overseas consumers also prefer different cuts to domestic shoppers which helps to earn value for the whole carcase.”

Farming

Cattle and sheep prices rise

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Prices up: But warnings given

HISTORICALLY high market prices for cattle and sheep are helping to push Wales’ agricultural sector into the black, according to market analysis by Hybu Cig Cymru – Meat Promotion Wales (HCC).

Welsh Government projections, released as part of its ‘Aggregate agricultural output and income’ and ‘Forecast of farm incomes in Wales’ statistical reports, show that agriculture is now worth almost £1.6 billion to the Welsh economy.

Beef and sheep farming – along with the dairy sector – are by far the largest contributors to this value, with the PGI Welsh Lamb and PGI Welsh Beef brands helping to secure millions in sales in the UK and export markets.

According to HCC, strong cattle and sheep prices at market are continuing to help sustain profitability, although the weather has had an impact.

“Market prices for June have continued the trend we’ve seen since the beginning of the year,” said HCC’s Data Analyst Glesni Phillips. “Poor weather in early spring is restricting the number of new season lambs coming on to the market, which has contributed to prices remaining around 10p per kilo higher than last year. Beef cattle prices are also strong, helped by a barbecue boom in the warm month of May.”

However, Glesni noted that average farm incomes were still modest, and that uncertainty over access to vital European markets after Brexit meant that forecasting future price movements was unusually difficult.

“According to Welsh Government figures, average incomes on a beef and sheep enterprise in the Less Favoured Area (LFA – which makes up over 80% of Wales’s agricultural land) are only just over £25,000,” she said. “Given that market prices are unlikely to remain at this level, and that considerable political uncertainty exists over possible levels of exports and imports of red meat, this highlights the need for agricultural businesses to prioritise on-farm efficiency as part of their Brexit preparations.”

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Farming

TFA calls for Inheritance Tax changes

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Radical change: TFA wants major tax reform

THE TENANT F​ARMERS ASSOCIATION (TFA) has called for a radical change in the operation of Agricultural Property Relief (APR) in its response to the call for evidence issued by the Office for Tax Simplification for its Inheritance Tax review.

TFA Chief Executive George Dunn said “For many rural landlords the taxation framework within which they operate has a major influence over the decisions they make about how they manage their land. The TFA believes that the Government should be using this sensitivity as leverage to achieve wider objectives for the resilience and sustainability of the tenanted sector of agriculture”.

The introduction of the Agricultural Tenancies Act 1995 represented a major deregulation of the agricultural let sector. Farm Business Tenancies (FBTs) were ushered in with the intention of improved efficiency of land use, whilst increasing opportunities for both progressing farmers and new entrants within the agricultural sector.

“Over two decades on and the TFA believes that neither of these objectives have been attained. Whilst we saw an increase in the amount of let land through the early years of the new legislation this has, by and large, tailed off. However, the biggest failing has been the perpetuation of short lengths of term leading to inefficiency. Short term tenancies are holding back progression, investment and sustainable land use. FBTs have been too short for too long and now is the time for that to change,” said Mr Dunn.

A big advantage to the taxpaying landlord is the ability to have 100% APR from Inheritance Tax for the agricultural value of their holdings let after the 01 September 1995. However, the TFA questions whether this relief should be so widely available. In circumstances where landlords choose to let for short lengths of term, there is little in the national interest to be gained from providing landlords with such a generous tax advantage.

“There needs to be a radical reform of the Inheritance Tax framework for agricultural land as it applies to landlords. Allowing for exemptions for specialist cropping lets on a rotational basis, APR should be abolished except in relation to land let for 10 years or more without a landlord’s break clause,” said Mr Dunn.

“Using changes in APR to improve the average length of term on FBTs will impact positively on the productivity, resilience and sustainability of the tenanted sector of agriculture, which is now responsible for farming around a third of the agricultural area of the country,” said Mr Dunn

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Farming

Royal Welsh to be blooming great

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The Great Royal Welsh Bloom Off: New at this year's Show

THE ROYAL W​ELSH AGRICULTURAL SOCIETY has announced it will be holding ‘The Great Royal Welsh Bloom Off’ competition during the main show on July 23-26.

Have you got a wedding coming up? This would be the perfect opportunity to learn how to arrange wedding flowers and win a wedding bouquet designed and arranged by renowned, award winning florist, Jonathan Lloyd-Davies.

Designed and sponsored by Johnathan of Johnathan’s Flowers, the competition, taking place in the Horticulture Marquee on the Tuesday (Jul 24) of the show, is open to anyone who has not previously competed in the floral art section of the Royal Welsh Show or Winter Fair, and who is interested in learning how to arrange flowers for an upcoming wedding.

Competitors do not need any previous experience (No NAFAS members), there will be no entry fee and all materials will be provided. But hurry, entries must be made in advance as spaces are limited.

The competition will follow the lines of the popular ‘Great British Bake Off’ programme, with contestants, in this instance, first taught to delicately arrange wedding style button holes, with the successful competitors proceeding to the next round to create a beautiful bridal bouquet under Johnathan’s watchful eye.

Jonathan established his business, Jonathan’s Flowers (www.jonathansflowers.co.uk), back in 1993 and has since gone on to provide an inspirational and personal florist service to South Wales and beyond. Specialising in floral designs to weddings and corporate clients, Johnathan has an impressive list of happy clients, including Catherine Zeta Jones, Bonnie Tyler, leading hotels in both Cardiff and Swansea, Glorious Goodwood, Royal Ascot and Wentworth Golf Club, to name just a few.

This exciting competition is just one of the many floral extravaganzas you will find in the Horticulture Marquee at the Royal Welsh Show. Packed full of fruits, vegetables, floral art displays, cut flowers, pot plants, window boxes and planters, a children’s decorated wheelbarrow competition, demonstrations, gardening question time, and the Welsh National Honey Show, amongst other delights… it really is worth a visit!

For more details and entry forms for ‘The Great Royal Welsh Bloom Off’, please contact: 01982 554409 / amanda@rwas.co.uk

The pinnacle event in the British agricultural calendar, the Royal Welsh Show, will be held on ​July ​23 – 26​ ​at the showground in Llanelwedd, Builth Wells.

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