Connect with us
Advertisement
Advertisement

Farming

First Milk simplifies pool pricing

Published

on

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

Areas of growth, opportunity, and inspiration: OECD report claims

Published

on

Food exports: Market messages need to be tailored

BRITISH food exporters need to gain an understanding of consumer needs in different countries if the UK’s farmers are to fully reap the rewards of overseas trade, according to AHDB.

In its latest edition of the Horizon Brexit series, AHDB argues that a ‘one-size-fits-all’ approach to unlocking export opportunities should be avoided and that we cannot rely on ‘Brand Britain’ alone to boost sales.

The report, focuses on international buying behaviours and looks at exporting from a consumer perspective. It highlights the need for industry to monitor and adapt to the needs of each marketplace to create more opportunities.

The study included responses from more than 4,500 consumers in nine countries – from key UK export markets in North America, Europe, Gulf States and Asia – around what motivates and drives them to choose the food they buy.

Among the key findings was that, while seven out of the nine countries surveyed said ‘quality’ was the most important factor, both China and Japan stated ‘food safety’ as critical in their food choices.

Christine Watts, AHDB chief communication and market development officer, said: “Concerns and priorities vary by market and many could benefit from tailored messaging to appeal to these different interests.

“For instance, in China and Japan food safety is critical. Communication to these markets needs to be tailored to meet the desires of consumers so they know more about the safety of the food they eat.”

The report also closely considers the impact of ‘British’ branding overseas and looks at some of the opportunities and challenges this holds in a post-Brexit world.

Steven Evans, AHDB consumer insight manager and author of the report, said: “The research looked to capture the reaction to ‘Brand Britain’ and understand objectively how other countries see us. We found that many consumers have not had direct exposure to British food products and, therefore, have not had the opportunity to build a firm view of their qualities.

“This highlights that exposure to products and clear branding is necessary to drive awareness and build brand reputation.”

Other key aspects from the report include how different sectors also have different drivers in buying behaviour. For example, while quality was important for both meat and dairy, price featured second in the list for meat while freshness was the second highest purchase motivator in the dairy industry.

Also, promoting the same meat cuts across all countries would not be beneficial for British exporters as lifestyles, tastes and food choices differ around the world.

AHDB International Market Development Director Dr Phil Hadley said: “Often, what we as a British consumer perceive as a good product message will not be relevant for all export markets.

“For example, the Chinese Sunday roast is not commonplace but Dong Po Rou (braised pork belly) is. Both hold a similar association as they both use larger joints but each fit very different meal occasions.

“We also know that a Chinese consumer is comfortable to view the whole journey from farm to fork. But it would be dangerous to assume that the same approach across all export markets will result in the same sales performance.

“A one-size-fits-all approach doesn’t allow for customisation and adapting to meet specific domestic demands. It is critical that British food producers don’t make assumptions that their product has the same relevance across all markets.”

Continue Reading

Farming

Rural areas vital for economies

Published

on

Areas of growth, opportunity, and inspiration: OECD report claims

RURAL areas are vital to national economies and addressing global challenges, according to the policy statement released at the 11th OECD Rural Development Conference held in Edinburgh.

The policy statement, which provides guidance to governments to support rural economic development, also declared that innovation will be critical to the future competitiveness and sustainability of rural economies. It also outlines the case for focusing on rural areas as engines of national prosperity and how policies should leverage this opportunity.

Jose Enrique Garcilazo, Head of OECD’s Regional and Rural Policy Unit, said: “Rural regions are not synonymous with decline or agricultural specialisation, but places of growth, opportunity and inspiration, yet rural is still not central to government policy. Rural areas have a key part to play in some of our major global challenges. They are best placed to develop new energy sources, to help sustain our natural environment and to ensure food security.

“In an increasingly interconnected world, opportunities are emerging to promote rural prosperity. Digitalisation will propel rural economies forward, and the conference has highlighted that supporting innovation in rural areas will be key to the future prosperity and wellbeing of rural regions.”

The policy statement identifies 10 key drivers of change predicted to influence the future of rural economies and communities and their potential to prosper, including additive manufacturing (for example 3D printing); decentralised energy systems; digital connectivity; the future of health; shifting values and preferences; drones; and driverless cars.

The statement also recommends that, in addition to prioritising rural innovation, a robust rural policy should place social, environmental and economic wellbeing at the forefront of policy decisions and take an integrated view across policy sectors to avoid one policy detracting from another.

The 2018 Conference, Enhancing Rural Innovation, was hosted by the Scottish Government and co-hosted by the European Commission and the UK, to provide a forum for key policy officials and academics from OECD member countries to engage and share ideas and experiences on rural policy.

It is the eleventh in the OECD Rural Conference Series, which has been held all over the world since its inception in 2002.

Prior to the main conference, a series of interactive sessions, led by the European Network for Rural Development, showcased exemplary projects and approaches already launched by rural communities to embrace 21st century challenges and opportunities.

Continue Reading

Farming

Rural Wales in ‘the 4G Wilderness’

Published

on

#4GforAll: CLA Wales highlights digital divide

NEW DATA gathered by the CLA has shown what rural communities have suspected for a long time; that the mobile industry is willing to abandon rural areas to the digital wilderness.

Director Rebecca Williams says: “Our information has revealed that too few planning applications have been made for mobile phone masts in our rural counties to bridge the digital divide between the urban and rural community.

“Latest research has shown that a county such as Powys – which has appallingly poor mobile connectivity at less than 3 per cent – has seen just 13 mast sites applied for in the past 12 months, yet urban counties such as Cardiff have seen as many as 62 applications. Even a rural county, such as Monmouthshire, close to the urban centres of Bristol, Newport and Cardiff, has seen just two mast applications.

“With 5G on the horizon in 2022, progress needs to be better – and Wales must not be left in the boondocks. The rural community must not be excluded. Farms and rural businesses lack the digital service they need to be competitive. We must remember that this is not about resident population numbers, since mobile communication should be available to everyone everywhere.”

In February, the CLA asked Ofcom to force reluctant mobile network operators to improve coverage in rural areas by imposing a legally binding coverage target on their operating licenses. It called for EE, O2, Vodafone and Three to be required to deliver 4G coverage to at least 95% of the UK geographic landmass on all networks by 2022.

Rebecca Williams continues: “Three years ago, we were told that coverage would be delivered in the countryside and yet rural communities are still waiting. In the same period the mobile industry has extracted concession after concession from UK Government Ministers. They have got the new legal powers they wanted, on the basis that they are a utility service.

“Now they must be forced to deliver the universal service that a utility operator provides. We expect government and the regulator to take a tough line on this, and if Ofcom won’t then Ministers must step in.”

The CLA has highlighted Ofcom’s failure to push mobile network operators to achieve universal coverage for consumers. It is calling on the UK Department for Digital, Culture, Media and Sport to review Ofcom’s statutory remit and confirm that the body should prioritise working towards universal, quality mobile coverage for consumers.

“The mobile operators have no market incentive to improve coverage in these rural areas. It is absolutely clear that the only way they will deliver the coverage the countryside needs is if they are forced to do so. However rather than pushing them to achieve universal coverage for consumers, Ofcom is setting soft targets for rural coverage. As a result rural consumers face inadequate service and lack of network choice for years to come.”

Further information can be found at www.cla.org.uk/4gForAll and Ofcom’s 700Mhz spectrum auction proposal.

Continue Reading
News16 hours ago

Pembroke Dock man caught up in Windrush problem

A MEMBER of the Windrush generation who spent twelve years in Pembroke Dock has been told he is living in...

News18 hours ago

AM to ‘think about’ leadership bid following calls for female candidate

ELUNED MORGAN AM has told the BBC she will ‘think about’ running for the Welsh Labour leadership role, following the...

News22 hours ago

Neyland: Man jailed for possessing and distributing child pornography

A NEYLAND man has been jailed for more than two years for possessing and distributing indecent images of children. David...

News1 day ago

Haverfordwest: Young mother’s warning about man’s threatening behaviour

A YOUNG mother has posted a warning on Facebook after she was approached by a stranger near Morrisons in Haverfordwest...

News2 days ago

Neyland: Arrest following large-scale manhunt ends in denials

A MAN has been arrested this afternoon (Apr 25) on suspicion of possession of drugs with intent to supply following...

News2 days ago

Body of 35-year-old man discovered by police

THE BODY of a 35-year-old man was discovered by police this morning (Apr 25) in Lower Freystrop, Haverfordwest. Police say...

News2 days ago

Animal cruelty cases at four-year high in Wales

A PEMBROKESHIRE man has been found to have failed to provide proper care for five equines, as animal cruelty prosecutions...

News3 days ago

Withybush petition surpasses 10,000 signatures

THE PETITION opposing the ‘drastic changes’ to Withybush hospital has already received over 10,500 signatures. It was revealed in last...

News4 days ago

Sir Thomas Picton out of special measures

SIR THOMAS PICTON SCHOOL in Haverfordwest has been removed from Special Measures by Estyn today (Apr 23). The school was...

News4 days ago

CCTV appeal after £900 of goods stolen from Boots

DYFED-POWYS POLICE is investigating the theft of electronic items worth more than £900 from Boots in Withybush Retail Park, Haverfordwest....

Popular This Week