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Farming

First Milk prices cause concern

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Troubled co-operative: First Milk.

Troubled co-operative: First Milk.

THE ANNOUNCEMENT of further price cuts by dairy co-operative First Milk has caused consternation amongst its members. Hardest hit will be the liquid milk or balancing suppliers who will see a 1.2ppl decrease taking their June A volume milk price to 19.3ppl.

The co-operative say they will bring in end product pricing from June meaning that the prices paid to their members across the UK will differ according to geographical location and end use. First Milk members supplying the Haverfordwest creamery in Pembrokeshire will be the only ones to see a positive movement of 0.3ppl with all others seeing a price decrease from June.

A programme of significant cost reductions across the business announced by new First Milk CEO Mike Gallacher includes proposals for up to 70 job losses and a new approach to milk pricing within its milk fields that links local milk prices to the value generated.

As part of the ‘turnaround’ plan, First Milk is cutting 70 jobs mainly at its HQ and in support functions while there will be a new focus on UK contracts and customers and less focus on exports.

NFU Cymru Milk Board Chairman Aled Jones said: “While I understand that new Chief Executive Mike Gallacher and the First Milk board have had to take drastic and decisive action to secure the longer term sustainability of the business, this news on milk prices brings little or no comfort to some members across Wales and England who have supported them over the years. The headline A price of 19.3ppl for the balancing supply doesn’t take into account the 2ppl capital investment requirement that came into force in January nor the fact that this is only paid for 80 per cent of the milk supplied. The actual milk price received by these farmers will be far worse and I would implore on First Milk to do all they can to increase both the A and B price for these farmers. We all want to see a secure future for First Milk but this should not be done at the expense of their members. I, and my board, have spoken to a number of them who feel they have no other option but to leave the industry. First Milk’s management team need to confirm at the forthcoming member meetings the whole range of actions that they are doing to put the business on a more secure footing. This must not just be about cutting the milk price. We welcome the announcement today of an independent review of the business – the recommendations are to be presented to members before the summer. We look forward to this painting a full and clear picture of what has happened in recent times and help explain the rationale for the turnaround strategy. We have already been in touch with First Milk and dialogue will continue to understand the rationale behind this latest price movement, and to seek clarity on their long term plan.”

A statement from First Milk read: ‘To ensure that the business is financially robust through the restructuring process, the First Milk Board has agreed a £3.3m reduction in member payments’.

Mike Gallacher, CEO, said: “None of the decisions announced today have been taken lightly, but they are necessary steps in the process of rebuilding a secure and stable future for First Milk, its members and its employees. As a team, our aim will be to provide every support for those impacted in the coming months. First Milk plays an important role in many rural communities across the UK and continues to value the support it has received from all our stakeholders. Our strategy is aimed at continuing to restore the health of First Milk so that we can support those communities through delivering better prices for their milk.”

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Farming

Special farming role for senior Pembrokeshire councillor

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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.”

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Farming

Call for Pembrokeshire to oppose farming inheritance tax withdrawn

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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.

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Farming

Welsh Lamb shines at the Winter Fair Taste Awards

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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.

Royal Welsh Winter Fair Taste Awards judges (from left) Steven Owen, Dilwyn Evans, Professor Rhian Goodfellow, OBE, Neil Fenn and Alwyn Watkins, OBE.

Pictured top of page: Taste Test joint winners, Arthur Davies (South Wales Mountain) and I.T . Davies (Clun Forest) with the judges.

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