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Farming

Auction markets see a surge in new season lambs

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Lamb prices stronger: Marts report high volumes (pic. Robin Drayton)

INCREASED numbers of new season lambs have entered the market this year, with 22% more lambs sold at Welsh auction markets between March and the end of June compared to the same period in 2016.

In England, the figure was even higher at 26%. This can be attributed to a favourable growing season and improved market prices encouraging producers to sell their lambs earlier.

For the latest week ending July 1, the new season lamb SQQ at auction markets in Wales stood at 207.5p/kg, a decrease of 15p on the previous week’s average. Despite the latest fall, the level seen is 19p above the average for the corresponding week in 2016.

John Richards, Industry Information Executive at Hybu Cig Cymru – Meat Promotion Wales (HCC) said: “Lamb prices over the last month have been significantly stronger than those during the same period last year. This is linked to the weaker Sterling which has led to UK exports bringing better returns to our exporters, with the benefits subsequently felt by producers here in Wales. We also saw less of last year’s lamb on the market during June, which also helped the trade.

“The numbers of lambs sold weighing between 32-39kg increased by almost a third. The pattern is even more evident at English auction markets as reports show that throughputs were more than 50% higher in this weight category than in the same four month period last year.”

He added: “The liveweight lamb trade in Wales held up at historically high levels for much of June, but prices have eased slightly in the last few weeks to match the expected seasonal trend.”

Looking forward, it is expected that all the domestic supermarkets will switch to stocking UK lamb over the coming weeks. This may improve demand while the export market is expected to remain resilient due to the favourable exchange rate.

“These factors should have a positive impact on the market, however, as always, the supply of lambs will dictate price fluctuations,” said John Richards. “The coming month will give us a better understanding of the true market situation. Last year the market was significantly affected due to the EU referendum in late June which caused Sterling to fall dramatically.”

For the latest week ending July 1, the new season lamb SQQ at auction markets in Wales stood at 207.5p/kg, a decrease of 15p on the previous week’s average. The latest price is some 35p below the average seen the fortnight before. Despite the latest fall, the level seen is 19p above the average for the corresponding week last year.

The deadweight lamb trade improved during early June but has come back in the last week however the latest price is significantly higher than the level seen last year. For the week ending June 24, the GB deadweight lamb price stood at 487.4p/kg, a fall of 22p on the previous week. It is reported that the deadweight trade has followed the liveweight prices and as such it is expected that the average price will be back again during the week ended July 1.

At the current levels prices are almost 75p above the deadweight price seen during the same week in 2016 which was pre-EU referendum and as such the strength of Sterling caused some difficulties for UK exporters.

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Farming

No one size solution for farm exports

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Food exports: Market messages need to be tailored

BRITISH food exporters need to gain an understanding of consumer needs in different countries if the UK’s farmers are to fully reap the rewards of overseas trade, according to AHDB.

In its latest edition of the Horizon Brexit series, AHDB argues that a ‘one-size-fits-all’ approach to unlocking export opportunities should be avoided and that we cannot rely on ‘Brand Britain’ alone to boost sales.

The report, focuses on international buying behaviours and looks at exporting from a consumer perspective. It highlights the need for industry to monitor and adapt to the needs of each marketplace to create more opportunities.

The study included responses from more than 4,500 consumers in nine countries – from key UK export markets in North America, Europe, Gulf States and Asia – around what motivates and drives them to choose the food they buy.

Among the key findings was that, while seven out of the nine countries surveyed said ‘quality’ was the most important factor, both China and Japan stated ‘food safety’ as critical in their food choices.

Christine Watts, AHDB chief communication and market development officer, said: “Concerns and priorities vary by market and many could benefit from tailored messaging to appeal to these different interests.

“For instance, in China and Japan food safety is critical. Communication to these markets needs to be tailored to meet the desires of consumers so they know more about the safety of the food they eat.”

The report also closely considers the impact of ‘British’ branding overseas and looks at some of the opportunities and challenges this holds in a post-Brexit world.

Steven Evans, AHDB consumer insight manager and author of the report, said: “The research looked to capture the reaction to ‘Brand Britain’ and understand objectively how other countries see us. We found that many consumers have not had direct exposure to British food products and, therefore, have not had the opportunity to build a firm view of their qualities.

“This highlights that exposure to products and clear branding is necessary to drive awareness and build brand reputation.”

Other key aspects from the report include how different sectors also have different drivers in buying behaviour. For example, while quality was important for both meat and dairy, price featured second in the list for meat while freshness was the second highest purchase motivator in the dairy industry.

Also, promoting the same meat cuts across all countries would not be beneficial for British exporters as lifestyles, tastes and food choices differ around the world.

AHDB International Market Development Director Dr Phil Hadley said: “Often, what we as a British consumer perceive as a good product message will not be relevant for all export markets.

“For example, the Chinese Sunday roast is not commonplace but Dong Po Rou (braised pork belly) is. Both hold a similar association as they both use larger joints but each fit very different meal occasions.

“We also know that a Chinese consumer is comfortable to view the whole journey from farm to fork. But it would be dangerous to assume that the same approach across all export markets will result in the same sales performance.

“A one-size-fits-all approach doesn’t allow for customisation and adapting to meet specific domestic demands. It is critical that British food producers don’t make assumptions that their product has the same relevance across all markets.”

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Rural areas vital for economies

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Areas of growth, opportunity, and inspiration: OECD report claims

RURAL areas are vital to national economies and addressing global challenges, according to the policy statement released at the 11th OECD Rural Development Conference held in Edinburgh.

The policy statement, which provides guidance to governments to support rural economic development, also declared that innovation will be critical to the future competitiveness and sustainability of rural economies. It also outlines the case for focusing on rural areas as engines of national prosperity and how policies should leverage this opportunity.

Jose Enrique Garcilazo, Head of OECD’s Regional and Rural Policy Unit, said: “Rural regions are not synonymous with decline or agricultural specialisation, but places of growth, opportunity and inspiration, yet rural is still not central to government policy. Rural areas have a key part to play in some of our major global challenges. They are best placed to develop new energy sources, to help sustain our natural environment and to ensure food security.

“In an increasingly interconnected world, opportunities are emerging to promote rural prosperity. Digitalisation will propel rural economies forward, and the conference has highlighted that supporting innovation in rural areas will be key to the future prosperity and wellbeing of rural regions.”

The policy statement identifies 10 key drivers of change predicted to influence the future of rural economies and communities and their potential to prosper, including additive manufacturing (for example 3D printing); decentralised energy systems; digital connectivity; the future of health; shifting values and preferences; drones; and driverless cars.

The statement also recommends that, in addition to prioritising rural innovation, a robust rural policy should place social, environmental and economic wellbeing at the forefront of policy decisions and take an integrated view across policy sectors to avoid one policy detracting from another.

The 2018 Conference, Enhancing Rural Innovation, was hosted by the Scottish Government and co-hosted by the European Commission and the UK, to provide a forum for key policy officials and academics from OECD member countries to engage and share ideas and experiences on rural policy.

It is the eleventh in the OECD Rural Conference Series, which has been held all over the world since its inception in 2002.

Prior to the main conference, a series of interactive sessions, led by the European Network for Rural Development, showcased exemplary projects and approaches already launched by rural communities to embrace 21st century challenges and opportunities.

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Rural Wales in ‘the 4G Wilderness’

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#4GforAll: CLA Wales highlights digital divide

NEW DATA gathered by the CLA has shown what rural communities have suspected for a long time; that the mobile industry is willing to abandon rural areas to the digital wilderness.

Director Rebecca Williams says: “Our information has revealed that too few planning applications have been made for mobile phone masts in our rural counties to bridge the digital divide between the urban and rural community.

“Latest research has shown that a county such as Powys – which has appallingly poor mobile connectivity at less than 3 per cent – has seen just 13 mast sites applied for in the past 12 months, yet urban counties such as Cardiff have seen as many as 62 applications. Even a rural county, such as Monmouthshire, close to the urban centres of Bristol, Newport and Cardiff, has seen just two mast applications.

“With 5G on the horizon in 2022, progress needs to be better – and Wales must not be left in the boondocks. The rural community must not be excluded. Farms and rural businesses lack the digital service they need to be competitive. We must remember that this is not about resident population numbers, since mobile communication should be available to everyone everywhere.”

In February, the CLA asked Ofcom to force reluctant mobile network operators to improve coverage in rural areas by imposing a legally binding coverage target on their operating licenses. It called for EE, O2, Vodafone and Three to be required to deliver 4G coverage to at least 95% of the UK geographic landmass on all networks by 2022.

Rebecca Williams continues: “Three years ago, we were told that coverage would be delivered in the countryside and yet rural communities are still waiting. In the same period the mobile industry has extracted concession after concession from UK Government Ministers. They have got the new legal powers they wanted, on the basis that they are a utility service.

“Now they must be forced to deliver the universal service that a utility operator provides. We expect government and the regulator to take a tough line on this, and if Ofcom won’t then Ministers must step in.”

The CLA has highlighted Ofcom’s failure to push mobile network operators to achieve universal coverage for consumers. It is calling on the UK Department for Digital, Culture, Media and Sport to review Ofcom’s statutory remit and confirm that the body should prioritise working towards universal, quality mobile coverage for consumers.

“The mobile operators have no market incentive to improve coverage in these rural areas. It is absolutely clear that the only way they will deliver the coverage the countryside needs is if they are forced to do so. However rather than pushing them to achieve universal coverage for consumers, Ofcom is setting soft targets for rural coverage. As a result rural consumers face inadequate service and lack of network choice for years to come.”

Further information can be found at www.cla.org.uk/4gForAll and Ofcom’s 700Mhz spectrum auction proposal.

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