Connect with us
Advertisement
Advertisement

Farming

Dairy farmers hit hard as average incomes plunge by up to 62%

Published

on

DAIRY FARMERS in Wales have suffered a major financial blow, with incomes falling by 62% in real terms between April 2023 and March 2024, according to recent figures. Average farm business income during this period dropped to just £70,900—a significant decline from previous years.

FALLING MILK PRICES

The primary cause of this downturn has been a sharp reduction in farmgate milk prices. After record highs in 2022, milk prices fell dramatically in early 2023, leaving many farmers struggling to make ends meet. This drop in revenue has had a ripple effect across the sector.

RISING COSTS

At the same time, input costs for feed, fertilizer, and fuel have remained stubbornly high. Although there has been some stabilization in feed prices, the overall cost of production continues to strain farm finances. Many farmers report that rising costs are eroding already slim profit margins.

LABOUR CHALLENGES

Labour shortages have also played a role. The dairy sector, which relies heavily on skilled workers, has faced difficulties in recruiting staff, a problem made worse by post-Brexit immigration rules. As a result, many farms have had to pay higher wages, further cutting into their earnings.

REGULATORY BURDENS

Environmental regulations have added another layer of financial stress. Farmers have been required to invest in costly infrastructure, such as improved slurry storage systems, to meet new standards. While these measures aim to protect the environment, they have placed additional pressure on farmers already grappling with tight budgets.

UNPREDICTABLE WEATHER

Weather volatility has also contributed to the challenges. Unpredictable conditions have impacted forage quality and availability, affecting milk yields and increasing costs for supplementary feed.

CALLS FOR SUPPORT

Industry leaders are calling for greater support to help dairy farmers weather the storm. They are urging the government to provide relief measures and address the ongoing issues of market volatility and regulatory costs.

Farmers’ Union of Wales Deputy President, Dai Miles said: “The latest statistics on Farm Business Incomes in Wales demonstrate the economic reality of attempting to maintain levels of profitability against a backdrop of increasing costs and red tape.

“Dairy farms have seen significant declines due to both an average increase of 10% in overall farm business costs coupled with reductions in income.

“Across the board, however, the proportion of farm businesses in Wales generating a negative income continues to increase to over 20%. At the very least, this demonstrates the need for the future Sustainable Farming Scheme to offer an equal level of economic stability, currently provided through the Basic Payment Scheme, the maintenance of which for 2025 has been welcomed by the industry.”

LOOKING AHEAD

Despite the challenges, some industry analysts remain cautiously optimistic, suggesting that stabilizing milk prices and improved market conditions could provide relief in the coming year. However, without significant intervention, many fear that the sector may continue to struggle.

Dairy farming has long been a cornerstone of the Welsh economy, and the current crisis serves as a stark reminder of the need for robust support for this vital industry.

Farming

Farmers’ Union of Wales responds to Foot and Mouth case in Germany

Published

on

THE FARMER’S UNION OF WALES has responded to reports of a confirmed case of Foot and Mouth disease (FMD) in Germany.

The disease was identified on 10 January in a water buffalo on a farm in Märkisch-Oderland, Brandenburg, marking Germany’s first case of FMD in nearly 40 years.

Foot and Mouth disease does not pose a risk to human health or food safety.

In response, the UK Government has implemented a ban on the import of cattle, pigs, and sheep from Germany. Additional measures include the suspension of import health certificates for live animals and fresh meat from species susceptible to Foot and Mouth disease.

Commenting on the development, FUW President Ian Rickman said:

“The recent case of Foot and Mouth disease in Germany will be a source of concern for livestock farmers across Europe.

The news inevitably brings back memories of the devastating impact the disease had on the agriculture sector and the countryside in 2001. This serves as a timely reminder of the importance of stringent border checks to prevent such diseases from entering the UK.

We welcome the proactive steps taken by the German authorities and the UK Government’s decision to ban livestock imports from Germany. As the situation unfolds, we will closely monitor developments and encourage livestock keepers to remain vigilant.”

Continue Reading

Farming

West Wales dairy farm leads the way in sustainable agriculture

Published

on

A Welsh farming family is making significant strides in reducing the environmental impact of their dairy business, achieving an impressive carbon footprint of 1.06kg CO2 equivalent (CO2e) per kilogram of fat and protein corrected milk (FPCM).

Roger and Catherine Howells, who run Blaengelli Farm in Whitland, attribute this achievement to years of investment in infrastructure and a steadfast commitment to high animal welfare standards.

Sustainable efforts and key milestones

The Howells family continues to evolve their sustainability journey, recently participating in an assessment funded by Lloyds Banking Group through the Soil Association Exchange. This comprehensive evaluation examined six critical areas: soil, biodiversity, animal welfare, water, carbon, and social impact. The resulting analysis provided the family with tailored insights to identify areas for further improvement.

“As part of our contract with our milk processor, we’ve taken part in sustainability audits for the past five years, so we’re pretty well versed in this area,” Roger explained.

“However, we saw this as an opportunity to build a full picture of the farm and thought it might support us in looking more closely at our soil health. The assessment considered soil pH, phosphate and potash levels, as well as copper and magnesium, which we hadn’t analyzed before,” he added.

Tailored action plan for improvement

The audit process provided Blaengelli Farm with a bespoke action plan, highlighting areas where environmental and operational efficiencies could be achieved. Farms undergoing this process are also signposted to funding opportunities to implement recommended improvements.

The Howells family scored particularly high in animal welfare, reflecting their focus on herd management and disease prevention.

However, their sustainability efforts have faced challenges. A recent TB outbreak forced the family to double their youngstock numbers to replace lost animals, increasing their replacement rate from 25% to 50%. Consequently, methane emissions rose, leading to an increase in their CO2e footprint to 1.27kg CO2e per kilogram of FPCM.

Tackling challenges with innovation

Despite setbacks, the Howells remain committed to progress. Measures to address their farm’s environmental impact include:

  • Introducing clover to reduce nitrogen inputs.
  • Applying farmyard manure to fields with low phosphate levels.
  • Planting deeper-rooting grasses and legumes to boost soil organic matter and carbon capture.
  • Adjusting soil pH to improve fertilizer efficiency.

“We’ve already started applying farmyard manure to low-phosphate and potash fields and plan to apply lime to fields that weren’t at the optimum pH at the time of testing,” said Roger.

A wider initiative for sustainable agriculture

The achievements at Blaengelli Farm are part of a broader effort by Lloyds Banking Group to support farmers transitioning to sustainable practices. By funding over 80% of farms participating in the Soil Association Exchange assessment, the bank is helping establish a robust environmental baseline for UK agriculture.

Lee Reeves, UK Head of Agriculture at Lloyds Bank, highlighted the importance of this partnership:
“The partnership between Lloyds Banking Group and the Soil Association Exchange is the most ambitious of its kind, focusing on building a holistic view of farming’s environmental impact.

“By providing farmers with the tools and finance they need, we’re helping the sector to adapt during a great time of change.”

This pioneering approach positions Blaengelli Farm and others like it at the forefront of the transition to sustainable agriculture in Wales and beyond.

Continue Reading

Business

José Peralta Appointed New CEO of Hybu Cig Cymru – Meat Promotion Wales

Published

on

AFTER an extensive recruitment process, José Peralta has been named the new Chief Executive of Hybu Cig Cymru – Meat Promotion Wales (HCC), the red meat levy body.

José brings over 25 years of experience in the UK meat industry, having held senior leadership roles across several prominent companies. Notably, he served as Managing Director of the UK’s second-largest red meat business under the ownership of Grampian Country Food Group, Vion, and 2 Sisters Food Group. During his tenure, the organisation achieved annual sales exceeding £500 million, employed over 3,000 staff, and operated six processing plants across the UK, making it a significant seller of Welsh beef and lamb domestically and internationally until 2016.

Following this, José became Managing Director of Tulip Food Company, overseeing eight processing sites and generating over £500 million in annual sales of pork-based products. Most recently, he served as Chief Operating Officer of Pembrokeshire-based Puffin Produce, where he spearheaded initiatives such as the development of the Pembrokeshire Creamery milk bottling plant.

HCC Chair Welcomes New Leadership

Commenting on the appointment, HCC Chair Catherine Smith said: “The Hybu Cig Cymru Board is delighted to welcome José Peralta as our new Chief Executive. His exceptional leadership skills and extensive experience in the red meat industry make him the ideal candidate to guide HCC into its next phase of development within an evolving and dynamic sector.

“This is an exciting time for HCC as we continue to grow and strengthen our renowned brands, PGI Welsh Lamb and Welsh Beef. With the finalisation of our current five-year business plan and the shaping of our strategic vision for 2026 and beyond, our focus is on creating a roadmap that supports the sustainable growth of the industry as a vital part of the Welsh agri-food economy.

“We also extend our heartfelt thanks to Heather Anstey-Myers, who has served as Interim Chief Executive over the past year, for her dedication and hard work.”

Government Endorsement

Huw Irranca-Davies, Deputy First Minister with responsibility for Climate Change and Rural Affairs, praised the appointment: “I am pleased that José Peralta is taking on this important role. His extensive track record in the red meat industry will be invaluable in advancing the organisation and ensuring it delivers the best outcomes for levy payers and the broader agri-food sector. Hybu Cig Cymru plays a crucial role in working with the Welsh Government and stakeholders to secure a sustainable future for farmers across Wales.”

CEO’s Vision for the Future

José Peralta expressed enthusiasm for his new role, stating: “I am honoured to join Hybu Cig Cymru and look forward to collaborating with the HCC team to champion the development and promotion of the Welsh red meat industry on behalf of our levy payers.

“Over the coming weeks and months, I will engage with levy payers and industry partners to identify opportunities for collaboration and partnership, ensuring maximum returns for both levy payers and the wider industry.”

José Peralta is set to assume his position on 20 January 2025.

Continue Reading

News3 hours ago

Landslides close section of Pembrokeshire coastal path once again

A SECTION of a south Pembrokeshire beach-side coastal path has been closed once again after a number of landslips in...

Community6 hours ago

Stricken vessel now off Broad Haven as pollution experts stand-by

A dramatic turn of events has seen the survey vessel KMS Terramare redirected to Broad Haven, where it is set...

News1 day ago

Housing plans for former Penally asylum seeker camp

THE EARLY stages of plans for a potential housing scheme at a Pembrokeshire military training camp, controversially used to house...

News1 day ago

Survey vessel stranded at Newgale beach prompts RNLI response

A 24.5-METRE survey vessel, the MTS Terramare, found itself in a precarious situation after becoming stranded on Newgale Beach on...

Health3 days ago

Cancer patients face long waits for diagnosis and treatment in Wales

A REPORT released by Audit Wales has revealed that cancer care in Wales continues to struggle with significant delays in...

Crime3 days ago

Father of baby girl killed in Tenby incident says its been like a ‘horror movie’

A SIX-MONTH-OLD baby girl has tragically died after her pram was struck by a car in a multi-storey car park...

Crime3 days ago

Ex-prison officer exposes failures and mismanagement at HMP Parc

A FORMER prison officer has come forward with allegations of systemic failings at HMP Parc in Bridgend, claiming that neglect,...

Charity3 days ago

Charity seeks homes for hens destined for slaughter in Pembrokeshire

A CHARITY dedicated to saving ex-laying hens from slaughter is appealing to the public to help rehome 139 chickens at...

Community3 days ago

Urgent action needed to protect Wales’ natural resources, says NRW report

NATURAL RESOURCES WALES (NRW) has published its interim State of Natural Resources Report 2025 (SoNaRR), urging immediate, collective action to...

Community5 days ago

Engineering work to bring major disruptions across local rail network

TRANSPORT FOR WALES, in partnership with Network Rail, has announced a comprehensive programme of engineering works across the South West...

Popular This Week