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Farming

Farmers and SMEs concerned by supermarket merger

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Merging?: Mike Coupe (L) with Judith McKenna (Walmart) and Roger Burney (Asda)

THE TENANT F​ARMERS ASSOCIATION (TFA) is calling for the Government to rethink its refusal to extend the remit of the Groceries Code Adjudicator (GCA) in light of the proposed merger between Asda and Sainsbury’s.

The planned merger, which will probably be referred to the Competition and Mergers Authority, would create the UK’s largest supermarket chain. However, a merged company would still not be as big as Tesco was only a couple of years ago, when that company had over 30% of the UK’s supermarket retail share.

The combined strength of the merged business poses a threat to suppliers, who could find their margins squeezed as the company would be able to depress prices paid to primary producers by manufacturers. That prospect was well flagged up during a BBC News interview with Sainsbury’s CEO Mike Coupe.

Mr Coupe told the BBC that there will be no store closures and no in-store staff redundancies, the inference that can be drawn is that jobs will go both in administration and back office operations, as well as logistics. The most likely way to deliver savings would be to increase the company’s margin or arrangements with producers and suppliers. Mr Coupe told the BBC that the merged company would have the potential to reduce prices through supply chain efficiencies.

Unfair practices within the retail supply chain led the Government to establish the GCA in 2013 to oversee direct supply contracts between retailers and suppliers. However it recently refused to extend the remit to include oversight of relationships further upstream between farmers and processors which could be impacted by the dominance of retailers.

TFA Chief Executive, George Dunn said “The merger between Asda and Sainsbury’s announced this week should cause the Government to rethink its strategy here. When Sainsbury’s boss Mike Coupe pledged to cut prices on everyday products by 10%, alarm bells rang out across the industry. It is suppliers who will be expected to shoulder the cost of these savings.

“There is a growing recognition that the food supply chain in the UK is dysfunctional and all too often it is the farming community which bears the brunt of the problems that this produces. Poor returns, last-minute changes in orders and specifications, unfair competition from abroad and poor labelling are all contributing to the pressures at farm level,” said Mr Dunn.

“Given that the vast majority of farm produce passes through at least one processor, if not more, before it hits supermarket shelves, the Adjudicator is therefore unable to consider the impact of retailer activity on many farmers,” said Mr Dunn.

Speaking in the House of Commons on Monday (Apr 30), Business Minister, Andrew Griffiths MP, referred to the work of the Groceries Code Adjudicator, but failed to address why the Government had decided to do nothing to protect primary suppliers. This was despite being challenged by Labour’s Shadow Agriculture Minister, David Drew MP on how the Government planned to tackle further potential supply chain abuse between farmers, processors and retailers.

“The TFA agrees that the GCA has had a positive impact on the groceries market by ensuring that there is a greater focus on the principles of fair trading. Retailers are now more aware of the need to ensure that they are not using their dominant position within the supply chain to engage in inappropriate practices. However the extent of the influence of the GCA is limited by its current legislative powers both in terms of the scope of its remit and its ways of working. The Government needs to act now to ensure that appropriate mechanisms are in place to guard against future abuse in the light of further concentration in the retail sector,” said Mr Dunn.

“Well-meaning initiatives aimed at improving supply chain relationships on a voluntary basis have failed to have the necessary traction across the board. We must deepen and broaden the GCA’s powers to allow it to look at the whole of the supply chain and not just direct supply contracts to ensure fairness in supply chains.​”​

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “A merger of this size will concentrate a lot of power in the hands of one giant company, and it’s important that power isn’t misused to coerce small suppliers into accepting unfair contracts and poor payment terms.

“Those at the top of Sainsbury’s and Asda should explain how they plan to merge these two supply chains fairly, and give reassurance that cost savings won’t be achieved simply by milking their small suppliers for all they’re worth.

“When investigating this proposed merger, the Competition and Markets Authority should be looking for cast-iron commitments that a positive standard will be set for working with smaller suppliers.”

FUW President Glyn Roberts said: “The proposed merger will raise many concerns for farmers given the huge power a new mega company could exert over the supply chain.

“If the government were to allow such a merger, we would need to see a step change in regulation of the supply chain and the powers of the Groceries Code Adjudicator, otherwise there is a risk of severe abuses taking place which further undermine farmers and suppliers.”

NFU Cymru President John Davies said: “NFU Cymru and the NFU will be examining the details of this proposed merger between Sainsbury’s and Asda carefully and the further concentration of retail power it creates within the food supply chain. We will also seek clarity on what the structure of any merger will be.

“We will be requesting a meeting with Sainsbury’s and Asda to ensure that the commitment of the new business to British sourcing will not be affected. First and foremost the NFU Cymru and the NFU will be seeking to understand what potential impact a merger would have on our members – both those farmers who are directly part of these supply chains and those who could be affected by wider connotations.

“With just over 31% of the market potentially being held by one company the Competition and Markets Authority (CMA) is likely to consider the impact on shoppers – but that must also take account of changes to supply arrangements that could give rise to a reduction in choice and availability over the long term. The impact of the whole supply chain, all the way down to farm level, needs to be carefully assessed.

“NFU Cymru and NFU support any investigation by the CMA and we would aim to feed into this if approached.”

Welsh Liberal Democrat Spokesperson for Agriculture Cllr William Powell said: “Welsh farmers will be justifiably concerned this merger will produce a supermarket that is simply too powerful, leaving suppliers at its mercy.

“Farmers already work with tight profit margins and face the multiple challenges of Brexit, including diminishing farm support and obstacles to accessing the vital EU Single Market. This merger must not be allowed to threaten them further.”

Farming

Transition milk trial targets calf health at Pembrokeshire dairy farm

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A PEMBROKESHIRE spring-calving dairy farm is introducing a new feeding system for newborn calves in what is to be thought the first trial of its kind in a large-scale herd.

Will and Alex Prichard are feeding enriched pasteurised transition milk to calves in their first 10 days of life rather than abruptly transitioning them to whole milk or milk powder.

Research has shown that feeding transition milk to young calves vastly improves their digestive system’s ability to digest milk, with those benefits sustained to keep them healthy and thriving as they grow.

The Prichard’s, who produces milk from 500 spring calvers, were keen to trial this feeding system in their own herd at Escalwen, Letterston, in the hope of improving calf health and wellbeing.

They are doing this with support from the Farming Connect Try Out Fund, an initiative that funds individuals and groups of farmers and growers to experiment with ideas and bring them to life.

Although the health benefits from enriched pasteurised transition milk have previously been demonstrated in all-year round calving herds in the USA and Canada, it is believed to be the first time it has been trialled in a large-scale block calving herd.

Getting the correct nutrition is crucial in the early stages of a calf’s life.

Even after a few hours the animal loses its ability to absorb antibodies – there is a dramatic reduction within 10 hours of birth and, by 20 hours, that capacity has all but gone.

To establish the effectiveness of the transition milk product, calves born at Escalwen this spring are being blood tested for antibody levels.

The transition milk is also being tested for its immunoglobulin (IgG) status before and after it has been pasteurised.

If it needs enriching this is being done to raise the BRIX value to a minimum of 12.5%. It is then fed to calves during their first 10 days of life.

An optical refractometer is being used to measure milk BRIX as it gives an instant result but by the end of the study all batches of transition milk will have been tested for IgG using Radial Immunodiffusion Assay at the University of Edinburgh.

Vet Dr Ryan Davies, director of Veterinary Technical Consulting Ltd, who is providing expert input into the project, says this will enable the accuracy of milk BRIX to be determined to quantify IgG status.

“We will then assess this against the health status of the calves,’’ he says.

Mortality from neonatal calf diseases such as diarrhoea, pneumonia and navel and joint ill is being monitored and antibiotic use too, as well as daily liveweight gains – at birth, at 30-35 days and at weaning.

The Try Out project hopes to understand more about how dairy farmers with large block calving herds can consistently produce animals that are healthy, productive and have a good quality of life through optimising calf health with preventative healthcare.

More productive animals mean less carbon emissions, higher standards of animal welfare and a reduction in antibiotic usage.

Not only do Will and Alex hope to reap the benefits in their own system but that other farmers will too when the findings are shared with the industry at the end of the project.

“Having the ability to acquire extra resources at the busiest time of our year has allowed us to monitor the results of our actions in a more scientific fashion,’’ says Will.

“Funding large scale testing is telling us so much about what is happening in our own herd environment and most importantly what behaviours and protocols are driving tangible improvements in herd health and antibiotic reduction.”

They had already made big gains in improving calf health before this project got underway.

The five-year average for morbidity in their pre-weaned calves from 2018-2022 was 45%, in line with the national average of 47% – in 2023 it was reduced to 17%.

Use of the Highest Priority Critically Important Antibiotics was reduced from 1.98mg/ population corrected unit (PCU) in 2022 to zero the following year.

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Farming

Animal health and welfare workshops help family farm shape future business

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AN eagerness to learn new skills and knowledge is helping mother and son Dianna and Iestyn Spary to continually improve their livestock farming enterprise and build a financially sustainable business fit for the future.

Technical expertise and good business sense are not qualities the Sparys lack since embarking on an impressive number of Farming Connect workshops, covering a range of animal health and welfare topics.

“It’s been an amazing opportunity, we have learned so much that we can apply within the day to day running of our farm and herd, and we can draw on that knowledge as we look at developing new enterprises and diversifications,’’ says Dianna.

She is the fifth generation of her family to farm at Goytre Farm at New Church West, Chepstow, Iestyn the sixth.

Together they farm 110 hectares, running a Hereford-cross beef suckler herd and also rearing beef cattle purchased as baby calves, including more recently British Blues, taking these through to slaughter.

Although they have been immersed in agriculture all their lives, they recognise that it is an industry that is constantly changing as new research and ideas are rolled out and applied.

This is where the Farming Connect workshops have been so incredibly valuable, says Dianna.

“You are never too old to learn, things are changing all the time. If we hadn’t got involved in attending the workshops, we would never have known about some of those new ways of doing things.’’

From learning how to maximise suckler cow productivity and protecting youngstock health to understanding diseases such as Johne’s and bovine TB, the animal health and welfare training workshops have been “enormously valuable’’, she adds.

The pair have tapped into Farming Connect accredited training courses covering areas such as calf management, health and housing, body condition scoring and safe use of veterinary medicines.

“You name it we have done it,’’ says Dianna.

They were announced the winners of the 2023 Farming Connect Animal Health and Welfare Award at the Lantra Cymru Awards in January.

The knowledge gained through Farming Connect workshops and training has helped inform changes in the business.

“We now monitor cattle weights more closely and have introduced different ways of feeding,’’ Dianna explains.

“We have also been revamping all the cattle sheds and have a couple of new ones that will be going up.

“We’ve also invested in calf jackets and if there are any drops in weights, we are more responsive with feed intakes, little things like that.’’

Iestyn has also benefited from a number of sheep-related topics offered through the animal health workshops.

Through the Farming Connect Advisory Service, they have received specialist veterinary advice on their Herd Health Plan with a focus on incoming stock and biosecurity. They have also had guidance on soil health through the soil clinic.

The Sparys largely use traditional farming methods at Goytre Farm where they have several hay meadows.

All feed is produced on-farm. “By doing everything in-house we know exactly what we are feeding and that’s important to us,’’ says Dianna.

That distinctiveness, which sets them apart from some of the more mainstream farming systems, has given them the confidence to consider establishing a diversification into meat box sales, what Dianna describes as a ‘farm to fork’ approach.

Working with a local butcher who has an abattoir licence, they hope to do everything on-site, from slaughter through to hanging the carcass for 28 days, and then selling cuts direct to the consumer.

“We have also spoken to a chef who is going to produce some recipe cards for us to include in the boxes along with a bit of history of where the meat has come from,’’ says Dianna.

Another future project could be converting stone barns in the farmyard to holiday accommodation.

To help focus their minds on their plans, the Sparys will get guidance at a Farming Connect diversification surgery; they have also signed up for a ‘planning a diversification’ training course and will attend a ‘Dos and Don’ts of Diversification’ event in the coming weeks.

For Iestyn, another form of diversification, into agricultural contracting, has provided a secondary income stream.

His customer base is largely farms with smaller acreages with crops that require harvesting or spraying.

Farming Connect has helped with this process too as Iestyn has gained his Level 2 Award in the Safe Use of Pesticides (PA1) and Safe Application of Pesticides Using Vehicle mounted Boom Sprayer Equipment (PA2).

He also offers field maintenance and fencing and works on a neighbouring farm during the lambing season.

This is where Farming Connect has again helped; through the animal health workshops, he has covered modules advising on the prevention of lambing losses and lameness, improving lamb performance post-weaning and parasite controls.

Dianna says the opportunities available through Farming Connect have really helped to drive the family farming business forward.

“We have a good relationship with our local Farming Connect development officer Lisa Powell, she has been brilliant in giving us advice on which courses and workshops are right for us and signing us up for those,’’ she says.

All your achievements, training and knowledge transfer activities are saved within your personal, online Storfa Sgiliau account, the unique, online professional development tool, available for you to view and download at any time from your BOSS (Business Online Support Service) account.

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Farming

E-Tickets now on sale for Pembrokeshire County Show 2024

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E-TICKETS are now on sale for this summer’s Pembrokeshire County Show, the largest county agricultural show in Wales. Preparations are coming together well for what is set to be a fantastic two days of livestock, competitions, attractions and much more.

General entry tickets for the show, taking place on Wednesday and Thursday, 14 & 15 August, are now available at an ‘early birds’ rate online from the website. Ticket prices have had to increase slightly to cover costs but still remain below 2019 charges. The early bird rate for Adults is £15, children £8 (5-16 years), Carers as well as children four years and under are free. Please visit: www.pembsshow.org to purchase your e-tickets.

Adam Thorne, President of Pembrokeshire Agricultural Society said, “At the event in August visitors will be able to tickle their tastebuds in the Castell Howell Food Hall, marvel at the livestock classes, enjoy watching the dog agility, be wowed by the showjumping, explore the horticulture, arts and crafts entries.

Shop ‘til they drop in the Country Market area, which will showcase over 40 quality local and award winning product and craft stalls and much more.”

Pembrokeshire Agricultural Society Membership packages are also available and these include admission to the Show and the Members’ Area. Purchasing membership of the society will support its aim to promote, advance and improve agriculture, horticulture and rural crafts and skills by the improvement of livestock and the demonstration and showing of livestock, machinery, crafts, products, methods and processes connected with agriculture and agricultural education in particular by the holding of an annual show. Full details are available on the website: Become A Member | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org)

Putting together this event is hard work and requires an enormous effort by the staff, volunteers and trustees of Pembrokeshire Agricultural Society. The Society is indebted to so many for their commitment and support in helping host the event.

A special mention must go to the county show sponsors. Pembrokeshire Agricultural Society is proud to have many local, regular, sponsors who make the event possible.

Sponsorship Director, Richard Cole, said, “Sponsorship and Pembrokeshire County Show have been a successful combination for the last 45 years. Sponsors have enjoyed promoting their businesses through the varied mediums of banners, announcements, show rings, buildings, equine and livestock classes and championships over the years. It isn’t too late. If you’d like to discuss becoming a corporate sponsor please complete the form on our website: www.pembsshow.org.”

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