Farming

Market volatility hitting family farms

Published

10 years ago

March 26, 2015

REBECCA EVANS AM – Deputy Minister for Farms and Food, visited the Haverfordwest Creamery to better understand the challenges facing the dairy sector and the plans that farmer-owned First Milk have in place for the future.

Haverfordwest Creamery processes the milk from nearly 300 local dairy farmers, who are all co-owners of the factory and located within a radius of 50 miles.

After completing a factory tour, which included speaking with local employees and a local farmer representative, the Deputy Minister said:

“In the last 12 months we have witnessed volatility and low prices in dairy markets around the world, which has had a direct impact on family farms across Wales. We are working closely with the industry, through our Dairy Task Force, to increase the demand and add value for Welsh milk and milk products.

“I believe that well-invested farmer-owned facilities, such as this creamery in Haverfordwest, are vital to the long-term vision of an efficient and sustainable dairy sector in Wales. One which delivers benefits for the wider rural economy.”

First Milk’s site director at the creamery, Paul Rowe commented: “Haverfordwest Creamery creates approximately £70 million of economic activity per year in West Wales. It processes over 260 million litres of local milk and turns it into 28,000 tonnes of award-winning cheeses, with over 100 local people employed in our cheese making and distribution operations.

“Haverfordwest Creamery is one of the most efficient in the UK and a large proportion of the investments we have made, over the last few years, have only been possible with the support of the Welsh government.

“Dairy markets are very tough right now and dealing with this is our immediate priority. However over the longer-term we firmly believe that the Haverfordwest Creamery is well placed to take advantage of the growing global demand for dairy products. We will continue to work closely with the Welsh government in developing these opportunities for the benefit of our local farming members and owners.”

Addressing the annual DairyCo conference at the University of Aberystwyth the following day (Friday, March 6), Rebecca Evans, announced the completion of the Welsh Dairy Review.

In October, the Deputy Minister announced she was commissioning an independent review of the Welsh dairy sector. She asked Andy Richardson, a member of the Dairy Task Force for Wales, to lead the review, which was commissioned in response to difficulties faced by dairy farmers last autumn, as well as an opportunity to review the voluntary code which had been in operation for two years.

She recently received the final report from Mr Richardson, who categorised his recommendations under five key headings: Leadership, Market Focus, Efficiency, Knowledge and Skills and the Environment.

The Deputy Minister said: “One of the things that has particularly concerned me about the recent cut in the price of milk is the impact on confidence and the possible knock-on effect this could have on investment within the sector.

“Andy Richardson’s review suggests that the mood, both amongst farmers and processors, may be more positive than perhaps is being portrayed and that is good news – without continued investment the future will look very bleak.

“As the price paid for milk continues to fall, many farmers and processors in Wales continue to operate under extremely challenging conditions on a daily basis, as the industry faces a very difficult period, one fundamentally driven by an over-supply.

“I am however confident there is a secure and profitable future for dairy in Wales. As I have said many times before, we have the land, the animals, the labour and the infrastructure. Evident from Andy’s review is that we also have the commitment, the passion and the willingness to change and to adapt that will see us through our current difficulties.

“It is so important to me that we continue to support the sector by taking on board the views of those working within it, and help to grasp the opportunities that exist.

“Following discussions with farmers and processors across Wales, Andy has been able to provide a vision of the future for the whole of the dairy sector which sets the direction for a more sustainable industry in the future.

“I would like to thank Andy for his work, undertaken in such a short period of time. I expect to publish the report, alongside the Welsh Government’s formal response, in the form of an action plan once I have given it due consideration.”

The Dairy Review was intended to draw on the work already undertaken by the Dairy Task Force but looked wider, taking views from all parts of the supply chain. It also considered what support the RDP 2014 – 2020 may provide to dairy farmers and the milk processing sector in Wales.

Meanwhile at Carmarthenshire’s recent NFU-Cymru conference, NFU President Meurig Raymond assured union members that the NFU was doing it all it can to assist its milk producing members get through the current price volatility when he spoke at the recent Carmarthenshire NFU Cymru conference.

Mr Raymond explained helping farmers within the milk industry was the Union’s top priority at present. He said he has met with the leading banks to ask them to help farmers at this difficult time. He has met with Government to discuss tax concessions. They’ve given evidence to the Efra Committee asking for more powers to the Groceries Code Adjudicator. The NFU has spoken to milk buyers, particularly First Milk. Mr Raymond also told those present how he has personally had some very difficult meetings with the major retailers and has had some assurances that they will stock more British dairy products in the future.

Mr Raymond said, “We are grateful to shoppers for the positive messages we’ve received as dairy producers and pleased that so many consumers have come out and backed British dairy farmers at this time. We’ve been inundated on social media in particular by shoppers wanting to know where they should buy their dairy products to help us most. In response we have said that shoppers have to check the labels to make sure they are definitely buying British produce – not something that looks British. The Red Tractor mark is a good quick indicator. I would like to take this opportunity to thank the British public for all their support at this time.”

Farming

Special farming role for senior Pembrokeshire councillor

Published

4 days 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

1 week 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

1 week 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.