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Farming

Is there a way to Brexit-proof your business?

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Discussing optimal dairy systems:​ FUW Milk and Dairy Produce Committee Chairman Dai Miles and Gwyn Jones, AHDB dairy board chairman​

A SEMINAR organised by the Farmers’ Union of Wales has provided an opportunity for Welsh dairy farmers to come together and air their views on a recently published AHDB paper which outlines the need for ‘optimal dairy systems’ in the British dairy sector.

Leading the discussions at the Welsh Dairy Show was Gwyn Jones, AHDB dairy board chairman, who highlighted the likelihood the industry will be open to more competition, less support and increased volatility in the future. He emphasised that there will be opportunities too, since the UK was an ideal country for producing milk, due to the climate, structure and the fact that there were good farmers in the sector.

In his talk, he stressed that the way forward for the sector was to be inspirational, efficient and prepare for the future.

He discussed AHDB’s recently published approach focusing on two systems – block calving where all cows calve within a 12-week window and All year round calving with no seasonal emphasis on calving.

“Block calving herds typically have lower overall costs of production, can be simpler to operate and can have lifestyle benefits, depending on land suitability, housing and location.

“The best AYR producers can achieve production costs comparable with block-calving and higher output can bring greater income. But the system can bring complexity making it harder to spot weaknesses in performance,” said Gwyn Jones.

“In Britain, over 80% of dairy farmers identify themselves as all-year-round calvers. This raises a question as to whether this is a conscious decision based on every farmer deciding what is the best system for them, or whether the system has just evolved.”

He emphasised that all production systems could be profitable and could work well, but the important issue was to attain a balance of production from all herds across the sector, in order to meet buyer and processor requirements.

“Many processors desire a relatively flat milk production profile from their milk pool; this does not mean that all farms should have the same production profile but rather that the collective profile needs to be flat.

“This could mean a balance between spring and autumn calving herds. A joined up industry approach would offer flexibility to farmers, whilst still meeting the needs of the processors,” said Gwyn Jones.

Comparing the relevant cost of production and margins achieved from each of the systems he highlighted that according to AHDB, spring calving herds typically achieved an extra margin of 2.4 pence per litre (ppl) above year-round calvers. For autumn calvers this was 1.3ppl.

He stressed that irrespective of the chosen system, all farmers should concentrate their business analyses on the full economic cost of production, the return on capital and the profit retained.

AHDB is changing its delivery to showcase and highlight what the best performers are doing under either system and identify the KPIs that are critical to performance.

Additional strategic dairy farms are being recruited to demonstrate best practice and encourage farmer to farmer learning. Farmbench will be rolled out to the dairy sector in the New Year to help farmers understand and compare their full costs of production at both enterprise and whole-farm level.

“We are asking farmers to approach 2019 with their eyes open. The choice of system is down to individual farmers, but what is important is that they understand their current system, hold a mirror up to themselves and make a conscious decision on which system is optimal for them,” said Gwyn Jones.

Responding to the suggestion that the dairy sector should review its systems and management style in order to prepare itself for potential Brexit problems, was FUW Milk and Dairy Produce Committee Chairman Dai Miles.

“Before we change our dairy systems and increase our production, we need to have greater processing capability in Wales. The latest Welsh Government-commissioned report on processing in the Welsh dairy sector concludes that processing expansion should be ‘more of the same’ which means more low-value cheese production – that attitude is at best disappointing and not in the slightest innovative.”

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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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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