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Farming

First Milk simplifies pool pricing

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Milk: Producer pricing simplified

FIRST MILK has announced that from April 1, 2018 it will be changing its approach to regional milk pool pricing, which will see its previous payment schedules simplified to just two payment schedules – First Milk Liquid and First Milk Manufacturing.

This development has been made in response to member feedback and is fully supported by the Member Council and Board. It will see milk prices harmonised at a standard litre of 4.0% butterfat and 3.3% protein, with the April price on this basis being 26.0 ppl.

Commenting on the developments, Jim Baird, Farmer Director and Vice-Chairman, said: “Whilst in recent weeks we have seen some recovery in the market, unfortunately, the overall global dairy commodity markets remain weaker than last year, which continues to impact on our returns. We know that this price drop will be disappointing news for our members and continue to do all that we can to minimise the impact of reductions.”

He added: “This more simplified and transparent approach on milk prices reflects the requirements of the business today and is a progressive step which unites our members across the country.”

Milk Policy Manager, George Jamieson of NFU Scotland, said: “NFUS has consistently believed that First Milk, as a farmer-owned business, should as far as possible have a pricing policy that is transparent, uncomplicated and treats all members, regardless of geography and end use, the same way.

“All First Milk members contribute to the business diversity so this move is welcomed by NFUS and we congratulate it for taking this step. The strength of a co-op is in bringing members together to draw strength in a common cause. First Milk Members in Scotland have suffered from lower prices on the whole, but this move is more important than regional sensitivity as it demonstrates a commitment by First Milk to a simpler and equitable pricing model.

“NFUS has met with First Milk recently and supported this move and also discussed other areas, such as governance and ongoing price challenges. The new governance model with a new Council and Board structure and a new Chief Executive is, we believe, making progress. Ultimately it will be farmer owners who will decide if it is working for them, which will be judged on price paid back to the farmers aligned with investment and sustainability.

“On price, First Milk’s new price of 26ppl is disappointing but not out of line with other processors. The drop does not reflect the new pricing model, but the downturn in the dairy market, which NFUS believes should be at the bottom of the curve. First Milk, as a farmer owned co-op, must pay as much as it can based on its markets and costs regardless of competitors pricing, and over the last two years it is pleasing for hard pressed FM farmers to see the gap in prices between FM and competitors closing.

“Looking ahead, commentators and futures indicators are cautiously suggesting that the recent price drops may be at an end. NFUS was very clear that we believed that farmgate prices last year did not reach the levels that were justified by the market, and that the slide back to unsustainable farm gate prices has been too speedy. Milk pricing remains at the discretion of milk processors, who under intense pressure from competitors and retailers have the reassurance that they have the power to set the price they pay for their primary product and largest cost.

“This is not an acceptable nor efficient way for any supply chain to be sustained. NFUS has consistently strongly lobbied for a dairy supply chain that was fair and efficient.

“While the Grocery Code Adjudicator has declined to include the primary producer under its remit, it has acknowledged the strong evidence supplied by NFUS and NFU that dairy farmers and the supply chain needs additional measures. Defra has committed to introduce mandatory contracts with minimum standards in the dairy sector and will consult soon.

“NFUS is fully committed to this and strongly urges all with the best interests of the dairy sector to engage and support this move. This is perhaps the single biggest opportunity the dairy sector in Scotland and the UK will have to set a direction of travel that can grow a dairy sector which is competitive and sustainable.

“Mandatory contracts on their own will change nothing, but contracts which are agreed, as against imposed, covering such contentious issues as pricing, management, shared risk and reward, will make a significant difference.”

Farming

Cattle prices exceed averages – and expectations

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BEEF cattle prices in England and Wales have hit the milestone of £4 per kilo, making this average the highest on record in a number of years.

The average deadweight price for steers for the week ending 24 April was 401.4p per kg which is 83p higher than this time last year and 67p above the five-year average.

Market prices at present are being influenced by a number of unique factors, including strong UK domestic retail demand, a lack of supply due to stockpiling in late-2020 ahead of the Brexit deadline, and changes in trade patterns caused by both Brexit and the Covid pandemic.

Whilst the impact of these factors on demand for beef in 2021 is unpredictable, newly released data from the British Cattle Movement Service (BCMS) suggests that no radical shift is likely in the supply of animals over the coming months.

During 2020, total calf registrations in GB were up marginally (0.5%) on 2019. In Wales, the figures show an increase of 1.4% in beef calf registrations, whilst dairy calf numbers increased by 3.2% on the year. For 2021 so far, beef calf registrations are currently trending 1.1% below last year.

Glesni Phillips is a Data Analyst at Hybu Cig Cymru – Meat Promotion Wales (HCC). She said: “As we approach the peak calving period for spring calving herds in Wales, it is expected that BCMS monthly registration figures will increase over the coming months.

“However, the suckler cow herd in the UK has been retracting in recent years and currently, it shows no signs of re-building quickly. Prime heifer slaughterings during 2020 and the first quarter of this year, for instance, are higher than recent historic levels.

“These figures would suggest that supply onto the domestic UK market will likely remain tight for some time. Domestic retail figures for beef are strong, and with barbeque season coming up we should continue to see good demand  for good quality, locally produced beef.”

A more detailed analysis of the BCMS calf registrations data is available in HCC’s latest Market Bulletin on the HCC website.

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Farming

NVZ rules driving family farms out of business

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GLAMORGAN beef and sheep farmers Richard Walker and his partner Rachel Edwards run Flaxland Farm – a 120-acre beef and sheep holding just outside of Barry, Glamorgan. The couple say they will have to give up keeping cattle if current Water Resources (Control of Agricultural Pollution) (Wales) Regulations are not adjusted to incorporate recommendations made by industry stakeholder groups.

Richard and Rachel keep 35 breeding cows and 130 breeding ewes and are at the end of their tether.

“We’ve had a session with Farming Connect to see what we need to be doing, and it didn’t really tell us anything we didn’t already know, apart from that we have enough ground to cope with how much slurry we produce. So we wouldn’t have to export. But we would have to cover one of the existing yards, which is an awkward shape, plus cover where we scrape slurry to, and also put in a slurry store. Which we don’t have at the moment,” said Rachel Edwards. 

“Judging on what the shed we had to put up recently has cost us, I don’t think we’ll have any change out of £50 thousand if we try to meet the requirements of the new regulations.  35 cows don’t bring in that sort of money. Where do you get that money from? And you still need to pay it back at the end if it’s borrowed. We’re looking at the kids probably still paying off what we’d spend. It would be far more stressful having to pay all that money back than getting rid of the cows. 

“These regulations are going to have a huge impact on our farm business. If nothing is done to amend or annul what we are facing now, I’ll have no choice but to get rid of the cattle. Trying to comply with these regulations is just going to be too expensive for us,” said Richard Walker.

Cabinet Secretary for Energy, Planning and Rural Affairs Lesley Griffiths announced the plans in a written statement in November last year, after which it became apparent that the majority of the plans had simply ‘been cut-and-pasted’ from the Nitrate Vulnerable Zone (NVZ) rules currently affecting just 2.4% of Wales.

While the Welsh Government announced in January that £11.5 funding would be made available to help farmers comply with the new rules – an allocation it had already announced previously in September 2020 – this represents just 3% of the £360 million the Welsh Government’s own impact assessment estimates the costs could be for Welsh farmers.

“There’s clearly nowhere near enough money to go around, and the total estimated bill is more than Wales’ annual farming budget.

“The margins are tight on lowland sucklers as it is. We’re looking at spending tens of thousands of pounds to comply. Is it really worth it?” adds Richard.

At Flaxland farm the muck gets spread on around 30 acres of fields in September when the fields are clear and it is left for a couple of months to rot down and go into the ground before being used as grazing for the new season lambs. 

“It saves us using artificial fertiliser. It’s organic fertilizer versus the artificial stuff which is £300 a tonne. We spread the slurry over winter, it helps the grass grow and we can turn the lambs and sheep out early. The spring lambs have fresh good grass and it hasn’t cost us a fortune in bagged fertiliser. 

“I look at what it does to my ground – new season lambs have lush green grass, a couple of inches tall and they rocket on it. We can produce 12 week old lambs ready for slaughter on grass and milk with no concentrate. Without it, the grass wouldn’t be as beneficial to the new season lambs as it is now. There would be a shortage of grass around February and March. The way we do things here works in rhythm with all the livestock and the environment. We also deal with the carbon footprint of our produce by selling our lambs locally to I.G. Nicholas butchers in Cowbridge, which means they have very few miles to travel from farm to plate,” said Richard.  

Being the third generation to farm the land, Richard says the farming system hasn’t changed much over the years and pollution here has never been an issue.

“I have had the cows all my life, my grandfather used to milk and they gave up milking in the 60s, and then we have had suckler cows ever since. The way we keep them hasn’t changed, back then it was open yards and they were fed on a concrete pad and whatever was left was scraped up and went out. It has never been an issue and we’ve never had a pollution incident here. The river near us has been tested many times and never comes back with any problems.

“I, like so many other farmers, take our responsibility to look after the environment, including our waters, very seriously. We have always been clear that one pollution incident is one too many and those who are guilty of polluting our rivers and watercourse should be held to account. Not many will argue with that. But to introduce these regulations across the whole of Wales, which goes against the recommendations the Welsh Government has received from their own task and finish group, beggars belief and will see many small and medium sized family farms go out of the cattle business,” he said.

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Farming

Small steps to improving pig fertility

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SIMPLE changes to pig management can result in significant improvements in fertility on units struggling with reproduction.

Factors influencing pig fertility are many and varied and can be due to infectious or non-infectious causes, says pig vet Dr Alex Thomsett, of The George Veterinary Group.

Non-infectious causes are often those that producers have more influences over and, in many cases, usually mean very simple changes, Dr Thomsett told farmers participating in a recent FarmingConnect webinar.

“A few small tweaks to management or the approach to reproduction on-farm can easily change a fairly difficult situation into a much better picture without going through a whole heap of blood sampling,’’ she said.

Among these is temperature stress; although this is more commonly associated with heat, cold can be a factor too.

Sows can find it difficult to adapt to changes in temperature and it can lead to more returns of service, poor cycling and higher numbers of abortions.

In outdoor herds, ensure pigs have mud wallows to dissipate heat and, to protect from direct sunlight, create shaded areas.

“This can be done very simply, with a few poles and a length of gale break or similar material,’’ Dr Thomsett advised.

Changes in day length can result in seasonal infertility in the autumn.

As this affects gilts, in particular, Dr Thomsett recommends selecting gilts that are early to go through puberty rather than those that are delayed.

Pigs need a minimum of 16 hours of daylight so ensure light exposure in housing is good – even cleaning whitewashed walls or lightbulbs can make a difference by better reflecting light at sow level on the back of the eye.

Light is more difficult to control in outdoor herds because this system is beholden to the time of the year and, for this reason, Dr Thomsett stressed that it was vital to get all the other issues around fertility working well, including nutrition.

Gilts need the right nutrition balance to prepare them to come into first service and to support them through the first service.

“Gilts and young females are still growing through their first pregnancy and it can often be forgotten that when a pig is lactating, her body is preparing for the next cycle’’, said Dr Thomsett.

In herds with longer lactation periods, Dr Thomsett suggests providing piglets with supplementary feeding to support the sow.

Mycotoxicosis is another consideration and can significantly interfere with herd fertility but Dr Thomsett said this is an unlikely cause if the farm has good quality sources of grain and straw.

Adding binders to feed is the best form of defence because these absorb harmful mycotoxins.

Vaccinations are an important tool for preventing infectious causes of infertility.

Ensure that the vaccination record of any bought-in stock is up to date and quarantine these animals, to ensure they are fit and healthy before entering the herd.

Carrying out a herd health check to establish health status and therefore which vaccinations are needed is greatly beneficial, said Dr Thomsett.

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