Farming

Dairy Crisis Update

Published

10 years ago

February 9, 2015

IN THE FACE of the current dairy crisis, the Farmers’ Union of Wales is once again calling on major UK supermarkets to commit to the procurement of Welsh dairy produce, and to ensure that the prices paid for dairy products are such that confidence in the long term future of the sector is revived.

Speaking after a recent FUW milk and dairy produce committee meeting, chairman Dai Davies said: “The FUW has written to the leading supermarkets in the UK to highlight that last year saw many months of consecutive downward milk pricing, which has caused major problems for the sector.

“Whilst some forecasts predict a decline in global milk supplies in the latter half of 2015, the Russian trade embargo, coupled with reduced demand in China and a weak economic environment, will likely delay price rises beyond any potential downturn in production.”

According to figures supplied by Defra, the average November UK farm-gate milk price was more than 16 percent lower than the same month in 2013 and is the lowest farm-gate price since September 2012.

“The falling dairy prices experienced by producers in Wales raises significant concerns within the dairy industry, and a lengthy delay in milk price recovery now seems certain due to a continuing supply and demand imbalance within the global marketplace.

“Factors such as low milk prices, poor profitability and long-term uncertainty in the sector have severely undermined confidence in the long term sustainability of this industry; the very nature of which requires a long term commitment and investment from producers,” added Mr Davies.

Whilst the Union recognises that dairy farmers supplying supermarkets on a dedicated supply contract have received more favourable milk prices, such farmers represent only a small fraction of the Welsh dairy sector – around 4 percent of production – and are therefore unrepresentative of the industry as a whole.

“Failure to secure commitment by providing sustainable prices for dairy should be a major concern for all those within the supply chain. Between January and September 2014, UK dairy imports of cheddar cheese, speciality cheese and butter were around 77,000, 271,000 and 42,000 tonnes respectively and the union is therefore urging the supermarkets to ensure that a concerted effort is made to source dairy products from within our own shores,” added Mr Davies.

However, Sir Jim Paice MP, head of dairy co-operative First Milk said that supermarkets were not wholly to blame for the crisis.

“It is tempting to blame the supermarkets for the current downturn in milk price we’re experiencing but I have to say, as Chairman of First Milk, the crisis that we’re seeing today in the milk industry is not really the supermarkets’ fault,” said Sir Jim Paice, when speaking to NFU Cymru members in Pembrokeshire recently.

Sir Jim continued, “I believe the fundamental problem with the dairy industry at the moment is that there is too much milk on the market. We have seen an approximate increase of 10% of milk produced in the UK alone this year. That has been exacerbated by two things, China dramatically reduced its purchase of milk powder and then Russia introduced its trade ban, which included dairy products. With a third of EU cheese exports going to Russia – that was the final straw and that’s why our milk prices are where they are.

“It has resulted in a very serious situation throughout the country at the moment, particularly here in south west Wales where milk is obviously a hugely important industry.” Sir Jim Paice informed Pembrokeshire NFU Cymru dairy farmer members who attended the meeting.

He used the meeting to assure those farmers that supply First Milk that the co-operative was here to stay and everybody is getting paid for the milk they have produced. He insisted that First Milk was in a very very strong position now, the strongest it has been for many years, and it should be strong enough to withstand the volatile next few months ahead.

John Davies, NFU Cymru Deputy President and Euryn Jones, Agriculture Manager for HSBC Bank, the conference’s sponsor, both agreed with Sir Jim that we were witnessing extremely volatile times at the moment in dairy, as well as other sectors of farming, and both agreed NFU Cymru and the bank were there to help assist members and customers any way they can to get them through the volatility. John Davies said, “What we all want is a fair price from the market place for what we produce.”

Sir Jim is currently the Conservative’s Member of Parliament for Cambridgeshire but he is due to stand down at the forthcoming General Election this spring. A Suffolk farmer, farm manager and training manager, Jim Paice was in the position of Minister of State at the Department for Environment, Food and Rural Affairs in 2010 when negotiations first started on the current CAP reforms.

Reflecting on his time as Minister he said that we’ve ended up with a Common Agricultural Policy (CAP) which is pretty similar to what was originally proposed. He explained, “I’m not saying that means the first proposals were right, what I’m saying is that it was very difficult for 28 very different countries to agree. Discussions were impossible when each Minister from each Member State was given just three minutes to give their views on the proposals. It ended up with each Minister giving set speeches – not a discussion!”

Simon Richards, NFU Cymru’s newly elected Chairman for Pembrokeshire, and a dairy farmer from Haverfordwest, thanked all the speakers at the County Conference, particularly Sir Jim Paice MP, for his insight into the current situation at First Milk and his time as Defra Minister. Mr Richards also thanked HSBC Bank for its generous sponsorship of the event.

Farming

Special farming role for senior Pembrokeshire councillor

Published

1 week ago

December 17, 2024

Bruce Sinclair - Local Democracy Reporter

AN OFFICIAL special farming role for Pembrokeshire’s deputy leader is to be established following a call made to full council, the first time the council has had such a role for a senior member.

In a question to council leader Cllr Jon Harvey, heard at the December meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements asked: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.

“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.

“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”

Responding, Cllr Harvey said: “I full share your perspective; it’s true this council has never had a Cabinet member with this role; however I can reconsider, I regard all aspects of rural life as vitally important.”

He told members farming and rural affairs came under the portfolio of the deputy leader [Cllr Paul Miller], adding: “we’re all aware of the changing aspects of rural life at the moment, we do have a rural affairs champion in Cllr Steve Alderman, but I’ve had a conversation with the deputy leader and agreed to review this title to reflect the importance of the role and will happily make an announcement in the next few days.”

Cllr Clements responded: “These words say a lot, it shows this council recognises the importance of the most constant and probably most important business in the county.”

Farming

Call for Pembrokeshire to oppose farming inheritance tax withdrawn

Published

2 weeks ago

December 14, 2024

Bruce Sinclair - Local Democracy Reporter

A CALL on Pembrokeshire County Council to oppose government changes to inheritance tax affecting family farms has been withdrawn, but its proposer hopes his motion will return to a future meeting.

At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.

This compares to a 40 per cent rate on other estates.

A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ was to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.

Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asked that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).

“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”

It called on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.

It finished: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”

At the December 12 meeting Presiding Member Cllr Simon Hancock informed members the notice had been withdrawn from the meeting.

Speaking after the announcement, Cllr Thomas, himself a farmer, said: “There was a dispute whether I should have been allowed to submit it as I am a farmer, so I took advice from the monitoring officer that I should withdraw it until I can get a dispensation from the standards committee to speak on the matter.”

He said he hoped to get the motion resubmitted to be heard at the next council meeting.

Farming

Welsh Lamb shines at the Winter Fair Taste Awards

Published

2 weeks ago

December 12, 2024

Tom Sinclair

THE ROYAL WELSH WINTER FAIR TASTE AWARDS, showcasing the finest native lamb breeds of Wales in a celebration of sustainability, flavour and culinary excellence, were hosted by the Royal Welsh Agricultural Society (RWAS).

The awards, held in collaboration with Cambrian Training Company, the Culinary Association of Wales and the National Culinary Team Wales, spotlighted the exceptional quality of Welsh Lamb and its unique characteristics.

The competition aimed to promote native Welsh Lamb breeds and emphasise their distinct flavours, encouraging chefs, businesses and consumers to consider Welsh Lamb a premium product.

The RWAS says the competition provides a vital platform to showcase the exceptional flavours of native Welsh Lamb breeds while promoting sustainable farming practices.

These lambs are grass-fed, raised in Wales and come with full traceability from farm to fork. The initiative aims to highlight the story behind the meat and the dedicated efforts of farmers in preserving these breeds.

Societies representing seven native Welsh Lamb breeds participated in the competition, held at the Cambrian Training Company building on the Royal Welsh Showground at Llanelwedd.

Each breed’s lamb was expertly cooked by chefs and presented to a distinguished panel of judges, including Dilwyn Evans, a vet featured on TV series ‘Clarkson’s Farm’, Steven Owen, Castell Howell development chef, Neil Fenn, Professor Rhian Goodfellow, OBE and Arwyn Watkins, OBE, executive chair of Cambrian Training Group.

The breeds showcased included Badger Face Welsh Mountain (Torddu and Torwen), Balwen Welsh Mountain, Black Welsh Mountain, Clun Forest, South Wales Mountain, Llanwenog and Pedigree Welsh Mountain.

Each lamb had been bred, born and reared in Wales, ensuring sustainable and traceable farming practices.

The awards highlighted the diversity among native Welsh Lamb breeds, from the Torddu and Torwen’s hardy nature to the Llanwenog’s docile temperament and premium meat quality.

Farmers and breed societies demonstrated the unique traits of their lambs, such as flavour, sustainability and adaptability to diverse farming environments.

Arthur Davies (South Wales Mountain) and I. T. Davies & Son (Clun Forest) were declared joint winners of the Royal Welsh Winter Fair Taste Awards. Both breeds impressed the judges with their remarkable flavour, tenderness and quality, showcasing the very best of Welsh Lamb.

The event emphasised the importance of promoting the culinary excellence of Welsh Lamb alongside its visual appeal in show rings.

Guest judge, Dilwyn Evans said: “It has been an absolute honour to judge the Royal Welsh Winter Fair Taste Awards and experience first-hand the superior taste of native Welsh Lamb.

“This exceptional meat not only embodies the rich heritage and dedication of Welsh farming but also highlights the importance of preserving these unique breeds and the sustainable practices behind them.”

The RWAS thanked the judges and Cambrian Training Group for their continued support, helping ensure the lambs were cooked to perfection for the competition.

With the awards, Wales has cemented its position as a leader in premium lamb production, bringing the exceptional flavours of its native breeds to the forefront of the culinary world.