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Farming

Hard Brexit threat to west Wales’ farmers

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John Davies, NFU Cymru: Priority must be tariff-free trade with EU27

BREXIT threatens major upheaval for Welsh agriculture, with small upland farms particularly threatened.

A report from the Public Policy Institute for Wales (PPIW) suggests that there is a massive risk to west and north Wales.

LIVESTOCK FARMING THREATENED

Its analysis suggests that the most likely changes in trading conditions would tend to disadvantage the competitive position of Welsh agriculture in its main current markets and trading competitors (particularly in sheep and beef).

The report also anticipates generally reduced levels and scope of public funding by comparison with those the sector has enjoyed in recent years.

However, within these challenging probable change scenarios, there are opportunities if farm businesses are enabled to respond adaptively.

Some farms and sectors face much greater challenges than others, which implies uneven structural change across significant areas:

  • a decline in the economic viability of sheep production is likely, with these farm businesses especially vulnerable to changes in both market access arrangements and public funding support – this could increase pressure on rural services;
  • accordingly, north and west Wales are likely to face stronger negative impacts than the south and east, where more potentially positive and diverse impacts can be expected among dairy, horticultural, mixed and other farm types.

MARKET RESPONSE UNCERTAIN

How key food and forestry processors and retailers respond to the Brexit process, and their willingness to invest in Wales and Welsh products, will be an important factor. Their patterns of operation may change in response to shifting economic and market conditions.

Managing the challenges faced is key, to prevent undesirable impacts on natural capital, landscape quality and community identity.

Three policy directions are recommended:

  • Fostering resilience in farm and other land management businesses; supporting successful adaptation, enhanced efficiency, diversification, adding value and intergenerational transfer, as well as some moves from farming into other sectors;
  • Investing in longer-term partnerships between government, food retailers, rural service providers, and commercial lenders to promote stronger business networks and SME infrastructure across Wales;
  • Designing a future funding framework to support natural resource management and rural vitality in Wales.

THINK OUTSIDE THE BOX

Report author Prof Janet Dwyer, from the University of Gloucester, argued that while farming only employs a relatively small proportion of people directly, its success has a ripple effect across rural communities.

“People need to be more willing to think outside the box, to think about working together, think about understanding the way in which one person‘s business affects what other people do because farming affects the landscape, which affects tourism, which is an important sector in Wales, so a lot of these things are connected,” she said.

The CCRI Director and Professor of Rural Policy makes a number of recommendations to overcome these potential challenges. These include investing in better business planning and adjustment; careful succession planning for farms and small rural businesses; and policies to strengthen health and social services for those in the most remote areas.

“Conducting the work made me more aware of the importance of thinking ahead and planning for continued uncertainty, whatever the eventual political and economic outcomes of Brexit” said Professor Dwyer.

REPORT WELCOMED

A Welsh Government spokeswoman said it welcomed the report, saying it highlighted the possible impact of Brexit not just on trade and markets but on people‘s lives.

“However, Brexit also presents the opportunity to put in place new Welsh policy frameworks to help them adjust and thrive,” she said.

“We recognise that many of these changes will impact businesses in different ways and agree the best approach will be on an individual business level.”

She said they have already begun work to develop “sector readiness” programmes to support businesses to prepare for the change.

“We continue to press the UK government on the need for a multi-year transition period to enable all businesses to prepare and for clarity on the level of funding that Wales will receive after Brexit.”

Responding to the report’s findings, Paul Davies AM, Welsh Conservative Shadow Secretary for Rural Affairs, said: “We note with interest the recommendations of the report.

“Following our departure from the EU, more powers over agriculture will be transferred to the Assembly. “The Welsh Government now needs to focus on ensuring that they listen to rural communities and that they actually devolve power to people living in the countryside.”

Mr Davies view of ‘more powers’ being transferred to Wales does not appear to reflect the views of many Conservative Brexit enthusiasts within the UK Parliament, including David TC Davies, who chairs the Welsh Affairs Select Committee and David Jones, the former Secretary of State for Wales, whose appearance in Cardiff this week as a member of the Public Administration and Constitutional Affairs Committee was noticeable for his equivocal approach to the transfer of powers in areas of existing competence back to the Assembly after Brexit.

HARD BREXIT’S SEVERE IMPACT

The report’s publication coincided with the release of the Welsh Government’s own Brexit trade paper, supported by an economic impact analysis from Cardiff Business School, argues the Welsh economy is best protected by retaining full access to the European Single Market and membership of a customs union.

The paper sets out the severe impact a hard Brexit would have on Welsh jobs and the economy. If the UK were to move to World Trade Organisation (WTO) rules, the Welsh economy could shrink by 8% – 10%, which would be the equivalent of between £1,500 and £2,000 per person in Wales.

The trade paper calls on the UK government to provide evidence of how new trade deals would replace the benefits of access to the EU. The Welsh Government also wants decisions on new trading relationships with the EU and the wider world to be taken in partnership with devolved administrations to fully reflect the interests of all parts of the UK.

Launching the document, the First Minister said: “Welsh exports are worth £14.6bn each year, with 61% of Welsh exports and just under half of our imports going to and from the EU. Wales is currently attracting record levels of inward investment, which is largely due to our access to the EU’s 500m customers.

“As our trade paper highlights, moving to WTO rules and the imposition of tariffs could have a catastrophic impact on our lamb sector and on the Welsh shellfish industry, which currently exports around 90% of their produce to the EU.

“These hard facts underline what is at stake if the UK government fails to get the right deal for the UK or we crash out of the EU without one. Leaving the Single Market and the Customs Unions would be hugely damaging for Welsh businesses and jobs, with our agricultural, food producers and automotive sectors being particularly hard hit.

“I urge the UK government to give serious consideration to our proposals and work with us to develop a post-Brexit trade policy which protects Welsh jobs and the economy.”

NFU WELCOMES WG PAPER

Commenting on the document, NFU Cymru President Mr John Davies said: “As the paper rightly acknowledges, the decisions that will be taken about the UK’s future trading relationships with the EU27 and the rest of the world will be significant factors shaping our future prosperity. In my view, nowhere is this more true than in relation to agriculture, with around a third of our lamb crop and around three quarters of Welsh food and drink exports destined for the European market.

“Trade has consistently emerged as a top priority for our members during the Brexit negotiations. As far as I am concerned our future trading relationship must be one which gives us the full and unfettered access to the Single Market that we need, and I welcome the fact that the Welsh Government has made this call once again in today’s policy paper.

“The imposition of tariffs, under a no-deal scenario would impact lamb exports in particular, and under WTO rates chilled lamb carcasses would attract effective tariff rates as high as 46%, effectively shutting us out of European markets.

“Whilst there has been much talk of tariff barriers and the detrimental impact that they can have on trade, I was pleased to see the policy document making extensive references to the negative impact that non-tariff barriers can have on trade, particularly in relation to exports of food. When it comes to food and agricultural produce in particular, non-tariff barriers such as inspections at border posts in order to demonstrate compliance with technical regulations and standards, rule of origin, hygiene, veterinary and phytosanitary controls are all factors which increase costs and hinder trade.

“The paper also rightly acknowledges the damaging impact that the lack of clarity on future trade arrangements with the EU is having for business and nowhere is this truer than in agriculture where production cycles can often span a number of years. That is why we cannot wait much longer for an outline of what our future trading relationship with the EU27 is going to look like, if our members are to start planning for the future.”

Mr Davies concluded: “Although Brexit may well eventually give the UK the freedom to strike its own trade agreements with third countries other than the EU27, speaking as a Welsh farmer, the immediate priority for the UK Government has to be on securing a trade agreement with the EU27 that is free from tariff and non-tariff barriers, and encompasses all sectors including agriculture.”

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Farming

First Minister to address FUW’s AGM

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Glyn Roberts: Welcomes First Minister to conference

THE FARMERS’ U​NION OF WALES is looking forward to welcome First Minister Carwyn Jones as the keynote speaker at its annual general meeting, which is taking place on Monday, June 18, at the William Davies Suite, IBERS in Aberystwyth.

The event is due to start at 1​:​30pm with a warm welcome from FUW President Glyn Roberts, which will be followed by a question and answer session on Brexit and #FarmingMatters.

Speaking ahead of the AGM, Glyn Roberts said: “We look forward to welcoming the First Minister to our AGM, which is likely to be his last engagement with the FUW in his current role.

“It promises to be a great afternoon of farming matters discussions, with a strong focus on agriculture in Wales post-Brexit, as well as #FairFarmFunding and I hope to see many of you there.

“And as is tradition we will also be revealing the winners of the FUW Owen Slaymaker Award, FUW New Members Award, and the FUW Long Service Award, in addition to a variety of FUW Insurance Services awards.”

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Farming

Manifesto sets Brexit agenda

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Industry presents united voice: Tariff-free trade a priority

LEADERS of over 100 organisations from across the nation’s food supply chain have put their names to a manifesto setting out the key principles that can help ensure Brexit is a success for the supply of food in the UK.

The UK Food Supply Chain Manifesto, has been drawn up by organisations representing farmers producing the raw ingredients and their suppliers, right through to manufacturers and retailers. It sets out the need for positive outcomes on trade, labour, regulation and domestic agricultural policy.

With little more than 10 months to go before Brexit, the manifesto emphasises the importance of ensuring our departure from the EU does not undermine the food production and supply sectors in the UK.

The manifesto has been sent to the Prime Minister by NFU President Minette Batters on behalf of the signatories, as well as other key cabinet ministers.

Mrs Batters said: “Today we are presenting a united voice as a food and farming sector worth at least £112bn to the UK economy and employing around 4 million people; a food and farming sector that meets 61% of the nation’s food needs with high-welfare, traceable and affordable food; a food and farming sector that cares for three-quarters of the iconic countryside, that, in turn, delivers over £21bn in tourism back to our economy.

“In the manifesto we warn, as a collective, that a Brexit that fails to champion UK food producers, and the businesses that rely on them, will be bad for the country’s landscape, the economy and critically our society. Conversely, if we get this right, we can all contribute to making Brexit a success for producers, food businesses and the British public, improving productivity, creating jobs and establishing a more sustainable food supply system.

“When it comes to the nation’s ability to produce food, we believe it is critical that the different elements of Brexit are carefully considered by all Government departments – including the Prime Minister who has herself spoken about the importance of supporting our sector through Brexit in recent days.

“As we enter this critical period in the Brexit negotiations, the signatories to this manifesto will be looking to Government to ensure its objectives are aligned with ours to ensure British food production – something of which every person in this country enjoys the benefits – gets the best possible deal post-Brexit.”

One key objective in the manifesto appears likely to run headlong into so-called ‘red lines’ set by the most enthusiastic of Parliamentary Brexiteers, who appear happy to countenance a future for food and farming in which small farms and the rural enterprises which depend on them are swept away in a torrent of chlorinated chicken and hormone-treated beef.

The report states: ‘The UK and the EU27 will continue to be each other’s most important trading markets in food and drink. In 2016, 60% of UK exports and 70% of UK imports in food, feed and drink were with countries in the EU.

‘Working towards a mutually beneficial trade agreement is a clear priority for the UK food supply chain, one which guarantees tariff-free trade and with as limited a number of non-tariff restrictions as possible. It is imperative that the EU and UK reach an agreement that maintains continuity in existing trade arrangements as far as possible, including the avoidance of a hard border in Northern Ireland’.

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Farming

Avian Influenza Prevention Zone ends

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Restrictions removed: Lesley Griffiths, Cabinet Secretary

CABINET S​ECRETARY​ for Energy, Planning and Rural Affairs Lesley Griffiths has confirmed that the All Wales Avian Influenza Prevention Zone will be lifted with effect from Friday, May 25.

The Cabinet Secretary has taken this decision based on an updated veterinary risk assessment conducted by the Animal and Plant Health Agency (APHA) which found the risk of incursion from wild birds has reduced from High to Low. Similarly, the risk to poultry is also Low.

The Prevention Zone was introduced on January​ 25​ to mitigate the risk of infection following three separate findings in England of Highly Pathogenic Avian Influenza H5N6 in Wild Birds.

In Wales, there has been only one finding in a wild bird this year. There have been no cases of H5N6 avian influenza in poultry in the UK this year and the poultry sector retains its OIE disease free status.

Cabinet Secretary said: “In January, I took action and declared the whole of Wales an Avian Influenza Prevention Zone in response to Highly Pathogenic Avian Influenza H5N6 findings in England. This was a precautionary measure to minimise the risk of infection to poultry here in Wales.

“We have since been monitoring the situation closely and the latest risk assessment by APHA has concluded that the risk has reduced from High to Low for wild birds and the risk to poultry is also Low.

“Based on this evidence-based veterinary advice I am pleased to announce that the current All Wales Avian Influenza Prevention Zone will come to an end with immediate effect. Whilst this is welcome news it is important to remember avian influenza remains a constant and real threat to our poultry and other captive birds.”

Chief Veterinary Officer for Wales, Christianne Glossop added: “I cannot stress enough the need for all keepers of poultry and other captive birds to remain vigilant for signs of the disease and to continue to practice the very highest levels of biosecurity.

“If anyone suspects disease they should contact the Animal and Plant Health Agency immediately. Also, we can all play a part in supporting the ongoing surveillance by reporting any findings of dead wild birds to the GB helpline.

“I would also like to remind all poultry keepers with 50 birds or more they must register their flocks on the Poultry Register and strongly encourage all poultry keepers, including those with fewer than 50 birds, to register. This will ensure they can be contacted immediately, via email or text update, in an avian disease outbreak, enabling them to protect their flock at the earliest opportunity and minimise the spread of infection.​”​

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