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Farming

Fear discounters could affect supply chain

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Continuing growth: Aldi and Lidl make giant strides

Continuing growth: Aldi and Lidl make giant strides

AFTER another year of disruption in the UK grocery sector, the latest supermarket Christmas figures make for interesting reading. The big four retailers – Tesco, Asda, Sainsbury’s and Morrisons – continued to lose market share to the discounters, Aldi and Lidl.

With the big four reporting massive falls in profits in their half-year results, it’s clear the largest retailers are struggling under this pressure. As a result, a staggering £1bn was wiped off the value of fresh food sales in 2015 (The Grocer Top Products Survey, 2015) as prices were slashed to prevent customers leaving for the discounters.

Although low prices are good news for consumers, the worry for producers is that these ongoing price cuts will be passed onto the supply chain. As retailers focus on meeting consumers’ demands, we have the potential to push the credentials of British products. The NFU will continue to work with all the major retailers in 2016 to ensure that any changes to the supply chain do not impact negatively upon producers.

Data from Kantar Worldpanel suggests Sainsbury’s is recovering slightly, with its share of UK spending now 0.8% higher than at the start of 2015. Likewise, The Cooperative (+1.4%), Waitrose (+1.5%) and the Symbol & Independent sector (Nisa, Londis etc.) (+0.2%) have also seen their market share increase over the last year. Although, it’s worth bearing in mind the whopping 18.5% increase for Lidl and a 13.35% increase for Aldi. In fact, Aldi and Lidl now account for over 10% of UK grocery spending.

It’s almost certain Aldi and Lidl will continue to grow rapidly throughout 2016, but the precise effect on the other retailers is harder to predict. An unexpectedly strong Christmas performance from Tesco and Morrisons complicates things. Many retailers’ improved sales have been down to heavy discounting to entice Christmas shoppers. Therefore, only their year-end profits will show the true cost of this discounting.

Overall, it’s likely 2016 will see further shelf-edge price cuts from the big four alongside new store formats, as supermarkets try to differentiate themselves. Premium retailers like Waitrose and M&S remained profitable during 2015 – although with Aldi and Lidl increasingly targeting wealthier customers – the pressure will be on to up their game. M&S food produced their highest Christmas sales ever, but for Waitrose, Christmas sales were surprisingly down 1.4% on last year.

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Farming

Welsh Government could overturn Ceredigion cattle breeder’s house plans

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A CEREDIGION councillor-backed scheme by one of the top breeders of Limousin cattle in the UK to build a home near Lampeter could be overturned following a call for it to be decided by Welsh Government, planners heard.

At the October meeting of Ceredigion County Council’s development management committee, the application, by Mr and Mrs Dylan Davies for a four-bedroom rural enterprise workers’ dwelling at Blaenffynnon, Llanwnnen, Lampeter, where they run a calving and cattle rearing business, was backed despite an officer recommendation for refusal.

One of the issues in the report for members was the financial test of whether the scheme was affordable, based on an estimate the building would cost some £292,000 to construct; at a 25-year mortgage amounting to £20,400 a year.

The size of the proposed building – which the applicants say include a need to entertain and occasionally accommodate clients – was also given as a reason for failing the TAN6 policy test, being larger than affordable housing guidance, at 202 square metres rather than a maximum of 136.

Members have previously heard the applicant breeds high-value show cattle for embryo transplanting at the well-established business, with one bull alone selling for £32,000 last year.

It had previously been recommended for refusal at the September meeting, but was deferred for a ‘cooling-off’ period to seek further details along with potential changes to the size of the scheme.

At the October meeting, members backed approval despite officers saying the size proposed could actually include a two-person bungalow in addition to the normal maximal ‘affordable’ size.

At the start of the November meeting, members heard a request for the scheme to be ‘called-in’ for Welsh Government final decision had been made, meaning Ceredigion planners’ approval could potentially be overturned if the ‘call-in’ is agreed.

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Farming

Welsh Government pressed on impact of new farming tax

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THE Welsh Government have been urged to clarify how many farms in Wales will be affected by the Family Farm Tax.

The calls come after farming unions rebuked claims from the UK Labour Government and Welsh Secretary Jo Stevens that only a minority of farmers will be affected by the new inheritance tax rules.

The UK Labour Government has come under heavy criticism following the announcement by Chancellor Rachel Reeves that farmers would have to pay a 20% tax on farms worth more than £1m.

When questioned on Sunday Politics about the potential impact of the new tax laws on Welsh Farmers, Welsh Secretary Jo Stevens claimed that “Three quarters of farmers will be unaffected”.

The treasury has yet to publish an estimate around the impact that the new tax laws will have on Welsh farms.

Both the FUW and NFU Cymru have expressed their concerns at the changes made by the UK Government, stating that it will cause “lasting damage to Welsh farming.”

The Welsh Lib Dems have now called on the Welsh Government to clarify how many farms in Wales will be impacted by the new Family Farm Tax rules.

Party leader Jane Dodds MS has written to the Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies to express her concern over the “untold damage that farming communities throughout Wales will face as a consequence of the UK Government’s most recent budget”.

In the same letter, Jane Dodds MS pressed Mr Irranca-Davies to confirm how many Welsh farms will be affected by the new inheritance laws.

“We cannot afford to leave our farming communities in the dark when it comes to the impact of this potentially devasting new tax law” said Jane Dodds MS.

Both our farmers and the Welsh Public deserve to know the truth that lies behind Labour’s claims that only a small amount of farmers will be impacted by the Family Farm Tax. Claims that, I should add, have already been disputed by both NFU Cymru and the FUW.

The uncertainty surrounding these new inheritance laws will place more unnecessary pressure on farmers across Wales, many of whom are already struggling under a cloud of financial pressures.”

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Farming

Pembrokeshire farmer’s award for outstanding service to Welsh dairy industry

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DAIRY farmer, Stephen James, from Gelliolau farm in Clunderwen, Pemborkeshire has been presented the FUW Outstanding Service to the Welsh Dairy Industry award at the Welsh Dairy Show 2024 in Carmarthen.

Presenting Stephen with the award will be FUW President Ian Rickman during the Welsh Dairy Show held at the United Counties Showground in Nantyci, Carmarthen on Tuesday 22 October 2024.

Ian Rickman, FUW President said: “The judging panel were delighted with the nominations this year, but Stephen’s diligent and relentless work for over 20 years representing the industry in a public role on the issue of Bovine TB in particular placed him on top.

“A worthy winner, Stephen has used his own experience of dealing with TB on his own farm business, having been in and out of restrictions for over a quarter of a century, to highlight the main issues that affect Welsh farmers, publicly.”

Stephen is Chairman of the Wales Animal Health and Welfare Framework a position he has held since July 2018. As Chairman, working closely with Wales’ Chief Veterinary Officer, Stephen works to make improvements in standards of animal health and welfare across Wales.

He has also been a leading figure in representing the concerns of Welsh farming to the Government. As an industry representative on the Welsh Government TB programme board, he has undertaken countless bilingual media interviews to local, national and international broadcasters. He highlights the impact the disease has on farming families and the need for the Welsh Government to implement a Comprehensive TB Eradication Strategy.

On winning the award, Stephen James said: “Receiving this award is a huge privilege. It was quite a shock to hear the news. I am extremely grateful to receive the award, especially at an event that is so close to my heart and is so important to the milk sector in Wales. Thank you so much for the honour.”

Stephen James has held a wide range of positions within NFU Cymru from Local Branch Chairman to President (2014 – 2018). He has worked on a number of significant policy areas including the Common Agricultural Policy Reform and Brexit, dairy issues and an influential figure during the trying times of the 2012 milk crisis. Stephen, alongside other UK farming union leaders, addressed the July 2012 dairy farmers Westminster Hall Rally.

Passionate about supporting the next generation of farmers, Stephen shared the responsibility for his farm business at Gelliolau to his son, Daniel, at a young age. He has been heavily involved with the Wales Young Farmers, both locally and nationally holding a number of positions including Pembrokeshire County Chairman, Pembrokeshire County President and Wales YFC Council member.

A long standing member of First Milk and a Director and past Chairman of Clynderwen and Cardiganshire Farmers, he truly believes in the values and principles of co-operative organisations.

He is former President of the Pembrokeshire Agricultural Society, a President and active Board Member of Clunderwen Show Society, a past Chair of Clunderwen Community Council and member and past Chairman of Narberth Grassland Society. Stephen James is also a Fellow of the Royal Agricultural Societies.

Ian Rickman concluded: “Stephen James has truly made an outstanding contribution to the Welsh Dairy Industry. We are delighted to present him with this FUW award in recognition of the years of work he has carried out on behalf of Welsh farmers. On behalf of the FUW, I congratulate and thank Stephen for his work.”

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