Lamb producers: Suffering as
seasonal prices plunge

LATEST figures show that while the retail price of lamb for consumers is lower in the spring of 2015, compared to the spring of 2014, it has not fallen anywhere near as much as the farmer’s share of that retail price which has dropped from 60 per cent to 50 per cent over the past year.

Speaking following a meeting of the NFU Cymru Livestock Board, Lyndon Edwards, said: “Lower retail prices would help bolster demand for lamb, but consumers aren’t seeing as much of a drop in price as farmers are, which begs the question – who is profiting from lamb? Our farm-gate price of lamb is reaching critically low levels. Whilst we recognise that trading conditions are tough, as the strength of sterling and the Eurozone crisis impacts negatively on our export markets, we are called to see that whilst the price we are receiving for our lambs has slumped that this price crash is not being reflected in the price on the shelves. Farmers need a sustainable price for their product that encourages them to invest in future production, returns must be delivered to everyone throughout the supply chain so that the consumer can continue to enjoy and savour PGI Welsh lamb in years to come. We know the challenges we all face in boosting lamb consumption here in the UK but I am confident that this can be achieved by giving in season PGI Welsh lamb pride of place on retail shelves and promoting our fantastic product this summer.”

Mr Edwards ended: “Members of our livestock board have been carrying out our own store watch in recent days visiting retail stores across Wales to find out who is showing commitment to Welsh lamb. Whilst there are retailers out there who are very supportive of Welsh lamb we have to say how appalled we are that in the first week of July we continue to see so much importedproductstillavailableonretail shelves in many stores. Individually we have complained to local store managers and as a Union we are using every available opportunity to raise our concerns with the agricultural teams and directors and we will continue to do so in the coming weeks.”

The Farmers’ Union of Wales (FUW) has warned that the fall in lamb prices, drastically reduced farm incomes and frustrations over the volume of imported lamb on supermarket shelves means farmer anger is reaching boiling point.

“Lamb prices have fallen drastically over recent weeks, with prices down by around 20 percent compared with the same period last year,” said FUW livestock, wool and marts committee chairman Dafydd Roberts. “Such falls come against a background of predicted falls in net hill and lowland livestock farm incomes of 41 and 24%.”

Mr Roberts said the volumes of imported lamb, which continue to appear on supermarket shelves, added insult to injury for farmers who had seen a fall in live-weight new season lamb prices of around 35p/Kg during June.

“The FUW has highlighted the need for an increase in farm-gate prices for all commodities during meetings with supermarkets over recent months, and the current plight of the industry was reiterated in a meeting with deputy minister Rebecca Evans last week. We will continue to draw attention to the need for fair farm-gate returns in meetings with bodies involved in the supply chain during the Royal Welsh show,” he added.

Mr Roberts said that while there was an ongoingfocusonfarmers cutting costs and become more efficient, there was widespread feeling that those further down the supply chain were not meeting their side of the bargain by showing the type of commitment to Welsh produce promised during the horsemeat scandal.

“As people struggle to pay bills and face up to the prospect of further falls in CAP support, tempers are beginning to fray and action needs to be taken to restore confidence,” he added.

Plaid Cymru’s Shadow Agriculture Minister, Llyr Gruffydd AM, has called on the Welsh Government to take urgent steps to protect Welsh farmers as price of Welsh produce continues to plummet.

Lamb prices have dropped by around 20 per cent compared with the same period last year as total farm income continues to plummet. The price of liveweight new season lamb fell by around 35p/Kg in June 2015.

The news comes just a few days after milk buyer, First Milk announced a further 1ppl cut to its standard litre price, meaning the majority of Welsh dairy farmers will be receiving milk prices far below the cost of production.

The Party of Wales’ Shadow Agriculture Minister, Llyr Gruffydd AM, said: “Supporting our farmers is a matter of increasing urgency and it is imperative that the Welsh Government steps in which is why Plaid Cymru will be holding a debate next week in the Senedd which will call on the government to utilise the Rural Development Programme to provide immediate support for those most affected and to protect farmers from the volatility of the global markets by strengthening domestic supply chains.

“If this isn’t a message to supermarkets, I don’t know what is. They have a duty of care to their suppliers and they need to recognise that the sector is struggling. We need leadership from the Welsh Government to ensure that supermarkets step in and support their suppliers. When the boot was on the other foot during the horsemeat scandal the suppliers stood by the supermarkets – it is now incumbent on the supermarkets to show the same loyalty.

“The public sector also needs to set an example and ensure as much of its produce is sourced from within Wales as possible and we needn’t look very far to see what needs to be done. Gwynedd council has led by example, sourcing 100 per cent of its school meals contracts from within Gwynedd or the surrounding region whereas Anglesey council over the bridge spends its whole school meals budget in Reading.

“Welsh farmers have been suffering for too long with seemingly perpetual cuts to farm-gate prices coupled with the slashing of their subsidy payments by the Welsh Government. It is imperative that the Welsh Government shows leadership in turning the situation around.”