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Farming

Eustice turns in a useless performance

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GEORGE EUSTICE has all the qualifications to be DEFRA Secretary of State in the Westminster Government.
He owns a pair of green wellingtons, corduroy trousers, a smart tweed jacket and a wax jacket.
He must be very good at his job. He’s been a Minister in DEFRA for most of the last six years.

CAR CRASH INTERVIEW

Which makes his catastrophically ignorant performance on Sunday’s Andrew Marr programme all the more baffling.
After six years as a Government minister, four of which have come after the result of the 2016 Referendum and ten months of which have come after Boris Johnson ‘got Brexit done’, Mr Eustice appears to have little or no grasp of the realities of agricultural production and food processing.
His nonsensical remarks about sheep farming – which he has sought to clarity – have received a lot of attention.
Of equally worthy attention is how George Eustice regards the interaction between markets.
In Eustice World ™, tariffs will have no effect on the UK’s dairy industry because tariffs will also be applied to EU goods coming into the UK. Which would be an interesting take if in the last reported year the UK didn’t operate a surplus of dairy trade with the EU. In short, EU countries buy more of ours than we do of theirs.
No doubt the gap in exports will be taken up by exporting blue cheese to the notoriously lactose-intolerant population of Japan.

ARLA RESPOND WITH HUMOUR

As an illustration of the Eustice Doctrine the DEFRA Secretary claimed that if producers like Arla wanted to continue to trade in the UK, they would have to relocate their production of Lurpak to the UK.
Arla explained in a subsequent tweet, doubtless to George Eustice’s amazement after only six years in DEFRA, Lurpak is subject to legal origin protections. Those mean that Arla can only produce Lurpak® in Denmark with Danish milk. It can’t be produced in the UK.
Arla helpfully added: “Don’t panic, whatever happens with Brexit, we’re sure we’ll be able to find a way to keep Lurpak coming into the UK.”
Dairy production was only a small part of George Eustice’s monumental achievements during his interview.
He went on to anger sheep farmers with a crass assertion so wrong-headed that even his subsequent attempted gloss on his words rubbed salt into their wounds.

FEELING THE HEAT OVER SHEEP MEAT

Andrew Marr asked George Eustice about the effect on sheep farmers. In a no-deal Brexit, red meat exporters face tariff barriers to trade with their largest export market. Over 40% of sheep meat is exported to the EU and that accounts for 90% of all UK sheepmeat exports. The largest market for British sheep meat in the EU is France, which takes around half of all exports.
In the event of a no-deal Brexit, the tariffs on lamb exports would make UK production uncompetitive in the EU market. Worse, the prospect of a trade deal with New Zealand raises the dual prospect of imports carving UK farmersout of their home markets.
Mr Eustice blithely asserted that UK sheep farmers would face only short term price drops and farmers who farmed sheep and cattle together could diversify into beef as imports from Ireland and the EU would fall due to increased tariffs affecting imports to the UK.
He subsequently clarified: “In my comments on the Andrew Marr Show, I did not say that all sheep farmers should diversify into beef. I said that if tariffs were applied then some mixed beef and sheep enterprises might choose to diversify more into beef because Irish beef would become subject to tariffs, creating new opportunities for British producers.”
That is not what Mr Eustice said. He said mixed cattle and sheep farms could diversify.
Mr Eustice’s suggestion would only have force if he thought most sheep farmers farmed cattle. Otherwise, his answer on sheep tariffs would make no sense in context.
On the latter point, farming organisations expressed dismay and bemusement at Mr Eustice’s ignorance.

FARMERS RESPOND TO USELESS DISPLAY

Phil Stocker, CEO of the National Sheep said: “Mr Eustice’s comments will have angered many of our nation’s sheep farmers, failing to identify the unique and varied nature of sheep enterprises across the country.
“To begin with, to suggest that many of our sheep farmers are mixed farmers is wrong. This assumption will enrage sheep farmers across the UK who have structured their farms to focus on sheep, and it will particularly antagonise our devolved nations where the landscape includes more remote areas of countryside, especially suited to sheep, and where buildings, machinery and farminfrastructure simply would not suit a sudden switch to cattle farming.
“The fact we have many sheep farmers, especially younger farmers and new entrants to the sector who run their sheep on arable farms and on short term grass lets was completely ignored – simply switching to cattle would be impossible for them.
“I find it hard to think that George Eustice really believes what he said This interview leaves us thinking his comments could either be part of creating a ‘we don’t care’ attitude to bolster trade negotiations, or, and this would be highly concerning, it exposes an underlying willingness to see our sheep industry go through a restructure to reduce its size, scale and diversity.”
FUW President Glyn Roberts said: “The reality is that failure to reach a trade deal would have a catastrophic impact for our key agricultural sectors that would hit home very quickly, with the sheep industry likely to feel the impact most acutely.
“It would also cause untold disruption to food and other supply chains and complete anarchy at our ports.”
Mr Roberts said that such a failure would also have devastating impacts for EU businesses and that it was therefore in both the EU and UK’s interest to ‘pull out all the stops’ to reach a deal.
Mr Roberts also rebuffed claims by Prime Minister Boris Johnson that the UK ‘will prosper’ without an EU trade deal.
“You cannot cut yourself off from the worlds biggest economy and trading block in the height of a global pandemic, the worst recession for a century and having borrowed a quarter of a trillion to cope and think it’s going to go well.
“Not only would this amount to catastrophic self -harm from an economic point of view, but also at a practical level the country is woefully unprepared to cope with the flow of goods over our borders and all the paperwork and checks that this requires.”
Mr Roberts said that while EU ports facing the UK had undertaken significant changes to prepare for different Brexit scenarios, many UK ports were still in the early stages of planning new infrastructure and would not be prepared to cope with the movement of goods until at least July next year.
“Even if a deal is reached, we are facing significant additional costs and disruption as a result of non-tariff barriers due to the UK’s decision to leave the Single Market and customs union.
“A no-deal will severely escalate these and must be avoided at all costs,” he added.
NFU Cymru President John Davies said: “Ahead of the EU Referendum and ever since, NFU Cymru has been consistent in its messaging that a ‘No deal’ Brexit outcome, which would see the UK trading with the EU on WTO terms, would be a catastrophic position for Welsh farming. The reason for our strong position is that the EU market has been – and remains – the nearest, largest and most lucrative export market for many Welsh products. It is a marketplace where our customers recognise and value the Welsh brand and the high standards it represents.
“Only a year ago the industry was told that the odds of a ‘No deal’ Brexit were ‘a million to one against’ and there was an ‘oven-ready deal’, yet here we are only weeks before the end of the transition period, facing the prospect of ‘No deal’ and high tariffs on our exports.
“The comments made by Secretary of State George Eustice serve to further underline why it is so important to Welsh agriculture that UK Government agrees on a deal that secures access to the EU without tariff barriers and with minimal friction.
“The Secretary of State’s view that Welsh sheep farmers could diversify into beef production to offset the impact of a ‘non-negotiated outcome’ will be of major concern to our sheep farmers, who are some of the most efficient and innovative in the world producing a quality product. The reality is that changing production methods involves long-term production cycles and for many, the significant investment required makes it an unviable option.
“The Minister’s comments on the dairy sector are also concerning and do not account for the fact that we are net exporters of some dairy commodities and that the profitability of some domestic sectors, like liquid milk, is tied closely to the timely export of high-value co-products to the EU, like cream. The idea that many of the major EU dairy processors will have to relocate their operations to the UK is fraught with difficulties and is, in many cases, unviable.
“Being priced out of our nearest and most important export markets for even a short amount of time would have severe consequences for the food and farming sector in Wales.”
TFA National Chair Mark Coulman said: “To suggest that dairy farmers will be saved by forcing Arla to produce its popular Lurpak brand in the UK when it is legally bound to keep its production in Denmark and that dedicated and successful sheep farmers should consider diversifying into beef production, if export markets for our high-quality lamb become closed to us, were not helpful, to say the least. The farming community was hoping for much better than this.
“Somehow, we need to use the short time available to garner the strength to pull victory from the jaws of defeat. This will require a concerted effort with the Government and the farming industry working together to achieve that. Although late in the day, the TFA is committed to engaging in that work,” Mr Coulman concluded.

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Farming

NSA Lambing List closes

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AS A much-valued service to its members, the National Sheep Association’s (NSA) Lambing List provides farmers with a place to advertise for much-needed lambing assistance from students and others seeking work experience each year.


The list annually provides an annual matchmaking service for around 400 farmers and veterinary and agriculture students. And despite a second lambing season under the constraints of Covid-19 restrictions the list has once again successfully helped farmers across the UK at this busy time of year.


The list has now closed and will reopen for advertisements for the 2021/2022 lambing season in the Autumn.
 NSA Communications Officer Katie James says: “The popularity of the NSA Lambing List grows each year.
“The guidance it provides to farmers using it and the links it offers students means it is incredibly valued by all parties involved. For most, the past two lambing seasons have taken place during Covid-19 restrictions meaning potential shortages of staff due to travel constraints or illness from the virus itself and additional measures to consider such as separate accommodation for temporary staff and social distancing.


“All at NSA are therefore pleased that the list has been able to help remove some of these concerns and provide a trusted method of securing extra help for its sheep farming members.”


 In a previous survey of NSA members using the list, more than 90% of respondents said they valued the list and would use it again to try and source additional lambing help from veterinary and agriculture students.


 Students who will be looking for work experience to assist their application to university or as part of ongoing veterinary studies are encouraged to consult the list from November 2021 when it becomes available once again to aid the student/farmer matchmaking.

NSA members will be able to add details of their available placements for their next lambing season from October.

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Farming

MPs urge level playing field

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IN its new report—Seafood and Meat Exports to the EU—the Environment, Food and Rural Affairs (EFRA) Committee expresses urgent concerns for exporters of highly time-sensitive fresh and live seafood and meat shipments to the EU, particularly small and medium-sized businesses.
Despite overcoming initial “teething problems” the new barriers small seafood and meat export businesses face could render them unviable, and factories and jobs may relocate to the EU.
The Committee’s report, therefore, calls on the Government to ease burdens, including:

• as a matter of priority, seeking agreement with the EU on digitising the certification of paperwork such as Export Health Certificates
• taking a flexible approach to the compensation fund for seafood exporters—including reconsidering the cap of £100,000 on individual payments, and providing similar support to meat exporters
• providing the same help to small meat and seafood businesses with the costs of extra red tape for exports to the EU as they can receive for moving goods to Northern Ireland
• establishing a ring-fenced fund to help create new distribution hubs, which allow smaller consignments to be grouped into a single lorry load, so reducing transport costs.

The Committee criticises the fact that controls on EU seafood and meat imports will not commence until 1 October 2021, with checks at the border only commencing from 1 January 2022.
This has placed British businesses at a competitive disadvantage and reduced the incentive on the European Commission to negotiate measures that would lessen the burdens facing British producers.
The report finds that adhering to the revised timetable will be ‘crucial’, to ensure food safety and to create a regulatory level playing field.
Neil Parish MP, Chair of the EFRA Select Committee, said: “British businesses have acted with incredible agility and perseverance to adapt to the new processes for exporting meat and seafood to the EU.
“With the many checks causing delays and costs, this hasn’t been easy. We are concerned that in the absence of equivalent checks for imports from the EU to Great Britain, there will be serious long-term repercussions for our producers.
“As it stands, the playing field is not even, and the Government must ensure that the new timetable to introduce import checks is adhered to.
“Even as “teething problems” are sorted, serious barriers remain for British exporters, and it is now imperative that the Government take steps to reduce these.
“It must be pragmatic in seeking an agreement with the EU to reduce the red tape that harms both sides, and in the meantime, crack on with giving practical support to small British businesses to sell their produce abroad.
“By the end of the year, the Government must have developed a digital system for certifying EHCs for imports from the EU, enabling it to then negotiate a reciprocal arrangement.”

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Farming

Cattle prices exceed averages – and expectations

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BEEF cattle prices in England and Wales have hit the milestone of £4 per kilo, making this average the highest on record in a number of years.

The average deadweight price for steers for the week ending 24 April was 401.4p per kg which is 83p higher than this time last year and 67p above the five-year average.

Market prices at present are being influenced by a number of unique factors, including strong UK domestic retail demand, a lack of supply due to stockpiling in late-2020 ahead of the Brexit deadline, and changes in trade patterns caused by both Brexit and the Covid pandemic.

Whilst the impact of these factors on demand for beef in 2021 is unpredictable, newly released data from the British Cattle Movement Service (BCMS) suggests that no radical shift is likely in the supply of animals over the coming months.

During 2020, total calf registrations in GB were up marginally (0.5%) on 2019. In Wales, the figures show an increase of 1.4% in beef calf registrations, whilst dairy calf numbers increased by 3.2% on the year. For 2021 so far, beef calf registrations are currently trending 1.1% below last year.

Glesni Phillips is a Data Analyst at Hybu Cig Cymru – Meat Promotion Wales (HCC). She said: “As we approach the peak calving period for spring calving herds in Wales, it is expected that BCMS monthly registration figures will increase over the coming months.

“However, the suckler cow herd in the UK has been retracting in recent years and currently, it shows no signs of re-building quickly. Prime heifer slaughterings during 2020 and the first quarter of this year, for instance, are higher than recent historic levels.

“These figures would suggest that supply onto the domestic UK market will likely remain tight for some time. Domestic retail figures for beef are strong, and with barbeque season coming up we should continue to see good demand  for good quality, locally produced beef.”

A more detailed analysis of the BCMS calf registrations data is available in HCC’s latest Market Bulletin on the HCC website.

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