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Farming

First Milk simplifies pool pricing

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Milk: Producer pricing simplified

FIRST MILK has announced that from April 1, 2018 it will be changing its approach to regional milk pool pricing, which will see its previous payment schedules simplified to just two payment schedules – First Milk Liquid and First Milk Manufacturing.

This development has been made in response to member feedback and is fully supported by the Member Council and Board. It will see milk prices harmonised at a standard litre of 4.0% butterfat and 3.3% protein, with the April price on this basis being 26.0 ppl.

Commenting on the developments, Jim Baird, Farmer Director and Vice-Chairman, said: “Whilst in recent weeks we have seen some recovery in the market, unfortunately, the overall global dairy commodity markets remain weaker than last year, which continues to impact on our returns. We know that this price drop will be disappointing news for our members and continue to do all that we can to minimise the impact of reductions.”

He added: “This more simplified and transparent approach on milk prices reflects the requirements of the business today and is a progressive step which unites our members across the country.”

Milk Policy Manager, George Jamieson of NFU Scotland, said: “NFUS has consistently believed that First Milk, as a farmer-owned business, should as far as possible have a pricing policy that is transparent, uncomplicated and treats all members, regardless of geography and end use, the same way.

“All First Milk members contribute to the business diversity so this move is welcomed by NFUS and we congratulate it for taking this step. The strength of a co-op is in bringing members together to draw strength in a common cause. First Milk Members in Scotland have suffered from lower prices on the whole, but this move is more important than regional sensitivity as it demonstrates a commitment by First Milk to a simpler and equitable pricing model.

“NFUS has met with First Milk recently and supported this move and also discussed other areas, such as governance and ongoing price challenges. The new governance model with a new Council and Board structure and a new Chief Executive is, we believe, making progress. Ultimately it will be farmer owners who will decide if it is working for them, which will be judged on price paid back to the farmers aligned with investment and sustainability.

“On price, First Milk’s new price of 26ppl is disappointing but not out of line with other processors. The drop does not reflect the new pricing model, but the downturn in the dairy market, which NFUS believes should be at the bottom of the curve. First Milk, as a farmer owned co-op, must pay as much as it can based on its markets and costs regardless of competitors pricing, and over the last two years it is pleasing for hard pressed FM farmers to see the gap in prices between FM and competitors closing.

“Looking ahead, commentators and futures indicators are cautiously suggesting that the recent price drops may be at an end. NFUS was very clear that we believed that farmgate prices last year did not reach the levels that were justified by the market, and that the slide back to unsustainable farm gate prices has been too speedy. Milk pricing remains at the discretion of milk processors, who under intense pressure from competitors and retailers have the reassurance that they have the power to set the price they pay for their primary product and largest cost.

“This is not an acceptable nor efficient way for any supply chain to be sustained. NFUS has consistently strongly lobbied for a dairy supply chain that was fair and efficient.

“While the Grocery Code Adjudicator has declined to include the primary producer under its remit, it has acknowledged the strong evidence supplied by NFUS and NFU that dairy farmers and the supply chain needs additional measures. Defra has committed to introduce mandatory contracts with minimum standards in the dairy sector and will consult soon.

“NFUS is fully committed to this and strongly urges all with the best interests of the dairy sector to engage and support this move. This is perhaps the single biggest opportunity the dairy sector in Scotland and the UK will have to set a direction of travel that can grow a dairy sector which is competitive and sustainable.

“Mandatory contracts on their own will change nothing, but contracts which are agreed, as against imposed, covering such contentious issues as pricing, management, shared risk and reward, will make a significant difference.”

 

Farming

Check ewes at weaning to protect next season’s lamb crop

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PEMBROKESHIRE sheep farmers are being urged to use weaning as a key opportunity to check ewe condition and deal with any problems before tupping.

With many local flocks now moving towards weaning, farmers are being advised to assess body condition score, as well as checking teeth, feet and udders, while there is still time to improve nutrition ahead of the breeding season.

Dr Alison Bond, Technical Services Manager at Rumenco, said close monitoring at this stage can help avoid major changes in ewe condition and improve overall flock productivity.

She said weaning at around 12 weeks was a good target, when lambs should usually be between 25kg and 30kg and taking very little milk from the ewe.

“There will of course be a focus on the lambs’ readiness for market at this stage, but it is equally important to put a hand across the ewes to assess their condition,” she said.

For lowland flocks, ewes with a body condition score below 2.5 at weaning should be given priority, as they may struggle to reach the target score of around 3.5 by tupping.

Those poorer condition ewes should be grouped separately, moved onto the best available grazing and given appropriate supplementary feeding where needed.

Dr Bond said waiting until closer to tupping could be less effective and may affect performance.

She added that ewes in good condition at tupping are more likely to scan with more lambs, produce healthier lambs after birth, and rear heavier lambs by eight weeks of age.

“It affects the whole production cycle, and not just one element,” she said.

The advice will be particularly relevant to farms across Pembrokeshire, Carmarthenshire and Ceredigion, where sheep remain a major part of the rural economy and where grass quality can vary sharply depending on weather, soil type and stocking pressure.

Dr Bond said the aim should be to keep ewes between body condition score 2.5 and 3.5 throughout the cycle, avoiding big dips and peaks.

Routine checks at weaning, she said, give farmers the best chance of correcting problems before the tups go in two to three months later.

Pic: Farmers are being urged to check ewe condition at weaning to protect flock performance ahead of tupping (Pic: Tim Scrivener/Agriphoto).

 

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Farming

Reform calls for urgent review of farming scheme

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LOW UPTAKE HAS RAISED FRESH QUESTIONS OVER THE FUTURE OF SUPPORT FOR WELSH FARMERS

REFORM WALES has called for an urgent review of the Sustainable Farming Scheme after figures showed only around half of eligible farmers have signed up.

The party said the lower-than-expected uptake showed that serious concerns remained within the farming community over the complexity of the scheme, compliance rules and uncertainty about how it will operate in the long term.

Laura Anne Jones MS, Reform Wales’ Shadow Cabinet Minister for Food, Farming and Rural Affairs, raised the issue during questions to the Welsh Government.

She said: “The figures released by the Welsh Government today confirm what many farmers have been saying for some time: the Sustainable Farming Scheme is too complex, too restrictive and too bureaucratic.

“Farmers need certainty and security, not endless paperwork and rigid requirements that fail to reflect the realities of farming in Wales.

“Reform Wales believes the scheme should be reviewed as a matter of urgency, with a greater focus on flexibility, common sense and practical outcomes.

“Welsh farmers deserve a scheme that works with them, not against them.”

The Sustainable Farming Scheme is due to replace previous systems of agricultural support in Wales and has been one of the most contentious issues facing the rural sector.

Farming unions and campaigners have repeatedly warned that any new system must be practical for family farms and must not add unnecessary red tape at a time when many businesses are already under pressure from rising costs, bovine TB and market uncertainty.

Reform Wales said the Welsh Government must now explain how it intends to respond to the level of take-up and whether changes will be made before the scheme is fully rolled out.

 

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Business

Holiday accommodation conversion of historic farm buildings approved

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PLANS to convert historic farm buildings near north Pembrokeshire’s Whitesands beach for use as holiday accommodation have been given the go-ahead, but their use doesn’t have to be restricted to just that purpose.

In an application to Pembrokeshire Coast National Park, Matthew James of James Properties, through agent Harries Planning Design Management sought permission for the conversion of two derelict barns to two self-catering holiday accommodation units at Porthmawr Ganol, Whitesands, St Davids.

An officer report said: “The farmstead occupies a prominent position within a landscape characterised by open agricultural fields enclosed predominantly by traditional dry-stone walls, exposed coastal pasture and areas of heathland associated with Carn Llidi.”

It added: “The site lies within the Porthmawr Historic Landscape Character Area, an area recognised for its historic pattern of dispersed settlement, traditional farmsteads, dry-stone wall field boundaries and evidence of medieval and post-medieval agricultural activity.

“The retention and reuse of the existing buildings therefore has the potential to preserve an important element of the area’s historic landscape character whilst securing a viable long-term future for structures that would otherwise continue to deteriorate.”

It said that insufficient evidence had initially been submitted to demonstrate that the buildings were unsuitable for permanent residential conversion and only for self-catering accommodation and therefore an affordable housing contribution should be secured.

Policy would lead to a contribution of £36,400, the report said, but a financial viability assessment by the applicant “demonstrated that the development would not be viable if required to provide the full policy contribution,” the maximum contribution capable of being supported whilst maintaining viability was £12,641.

This reduced figure was accepted, the officer report saying: “Whilst this represents a reduced contribution when compared with the full policy requirement, the submitted viability evidence demonstrates that the development could not reasonably support the full contribution whilst remaining deliverable.

“In these circumstances, securing a reduced contribution is considered preferable to losing the opportunity to secure the restoration and beneficial reuse of the historic buildings.”

It stated that, with the affordable contribution, the scheme would not be limited to self-catering development only.

The application was conditionally approved by Park planners.

 

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