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.
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.”
New HCC Chair appointed
WALES’ Minister for Rural Affairs last week announced the upcoming appointment of a new Chair at Hybu Cig Cymru – Meat Promotion Wales (HCC).
Catherine Smith, a board member of HCC since 2017, will take over from incumbent Chair Kevin Roberts on April 1, 2021.
Catherine is a food business consultant with more than 20 years’ experience in the red meat sector in procurement, processing and manufacturing. She is also a farmer’s daughter and wife, who lives with her husband and three children on a mixed farm in Monmouthshire.
She will be the first woman to take on the role since the formation of HCC in 2003.
Lesley Griffiths, the Minister for Environment, Energy and Rural Affairs, announced the appointment on Wednesday, February 3.
The Minister said: “I would like to congratulate Catherine Smith for her upcoming appointment to the role of Chair at Hybu Cig Cymru – and would also like to thank outgoing Chair Kevin Roberts for all his work in the role.
“Catherine brings a wealth of experience to the role, having worked within the red meat supply chain for two decades and served as a board member since 2017.
“I am very pleased to be able to announce Catherine as the incoming Chair, particularly given she will be the first woman to come into the role – and I hope her appointment reflects wider trends in business across Wales, especially within the agricultural sector.
“She comes into the role at an especially difficult time, with the red meat sector responding both to the challenges posed by the Covid-19 pandemic, and the complexity brought about as a result of the recent end of the EU transition period.”
Catherine said “Having grown up in a farming family, and worked in the food sector for twenty years, I’m very proud to be appointed as Chair of Hybu Cig Cymru.
“My priority will be to deliver for our levy-payers; farmers and processors. This will mean building our red meat brands using inventive and effective marketing, helping our industry to be as profitable as possible, and aiming to lead the world in terms of quality and sustainability.
“HCC has responded to the challenges of EU transition and the Covid-19 pandemic with flexibility, determination and innovation. Building on these strengths the organisation will continue to deliver on the priorities set out in Vision 2025 and support the industry to build its profitability and resilience whilst working closely with Welsh Government and all stakeholders within the supply chain.”
Kevin Roberts, outgoing Chair of HCC, said: “The past few years have certainly had their challenges from issues outside our control.
“I’m proud of the way HCC has responded, growing exports of Welsh Lamb and Welsh Beef significantly despite the uncertainty of Brexit, and playing its part in driving a major growth in domestic retail sales to help both farmers and consumers during the COVID pandemic. This has come about with the help of a lot of hard work from Gwyn Howells and his team of staff.
“I wish Catherine well in taking over as Chair during the next exciting period for our sector. Some uncertainties remain, but as we look to the future our brands are very strong; we’re offering what consumers want – high-quality food, traceable right back to the farm, and world-leading credentials in terms of environmental and welfare standards.”
NFU Cymru President John Davies said: “I’d like to congratulate Catherine Smith on her appointment as the new Chair of HCC and thank Kevin Roberts for his work and leadership over the past four years.
“Catherine will be taking over at a pivotal time for the red meat sector in Wales as we seek a global market for our products, following our departure from the EU. Welsh red meat is a world-leader in both its quality and sustainability credentials and marketing these strengths, to a global audience, in new and innovative ways, must be a priority for the board.
“Covid-19 has presented unique challenges but also huge opportunities for our products. Consumers’ favourability towards the agricultural industry has never been higher and the pandemic has brought into sharp focus the need for a constant supply of high-quality food to our customers. As we leave the CAP and design new policies made here in Wales, we need to ensure that we develop a comprehensive food and farming policy. This policy must have an ambition for growth that allows us to capitalise on these great credentials in both our domestic and export markets, in order to deliver a vibrant and prosperous future for everyone involved in the red meat sector in Wales.
“I would like to thank Kevin for his sterling work on behalf of the Welsh red meat industry, being at the helm of the HCC board at a time of unprecedented uncertainty brought upon by Brexit. Throughout his time with HCC Kevin has overseen the publication of the organisation’s Vision 2025 strategy and just recently the Welsh Way document, a strong and robust evidence base to further build our sector as a global leader in sustainability.
“We look forward to working closely with Catherine to ensure HCC delivers for levy-payers across Wales.”
Farming bodies slam ‘narrow-thinking’ WG
WALES’ farming unions and Wales’ YFC have written to the Minister for Environment, Energy and Rural Affairs to express concerns around the future direction of Welsh agricultural policy, following the publication of the Agriculture (Wales) White Paper.
In a show of unity, NFU Cymru, the Farmers’ Union of Wales (FUW) and Wales YFC called upon the Minister, Lesley Griffiths MS, to pause and reconsider what a future policy should deliver for the people of Wales.
The three organisations have raised concerns that little has changed over three consultation processes and there remains a lack of ambition for the future of farming in Wales.
The letter states ‘the direction of travel proposed does not appear to reflect the uniqueness of Welsh farming, built around family farms delivering for our economy, our landscape, language and culture. Instead, and most worryingly, it looks as though we are implementing a policy based on a very narrow definition of public goods, policy thinking very similar to what we have seen emanating from elsewhere, rather than a policy ‘Made in Wales’.’
In a joint statement, NFU Cymru and FUW said: “Welsh farming is at a significant crossroads. The decisions taken by policymakers in the coming months will shape and impact the sector for generations to come. Leaving the EU has given us the opportunity within Wales to put together an ambitious policy that enables Wales to lead the way, securing the supply of safe, high-quality affordable food for all in society, delivering jobs and prosperous rural communities, all while enhancing the environment for the benefit of all.
“We have throughout this process recognised and embraced the need for change in the belief that the main opportunity from Brexit was to develop an agricultural policy in Wales for Wales that had its people, the land they farm, and the food they produce at its heart. Collectively we are ambitious for Wales and passionately believe that our sector can play a leading role in the major challenges facing society, not least climate change, all whilst feeding an ever-growing population with the highest quality food and drink produced by the best farmers in the world. Put simply our ambition is for Wales to be recognised as a world-leading country of excellence for climate-friendly farming and food production.
“We have a once in a generation opportunity to get this right and enable rural Wales, its people, communities, language, landscape and environment to thrive and as such we urge you to reconsider the direction of travel and work with us to develop a policy that is ambitious and enables us to reach our potential.”
Katie Davies, Wales YFC Chairman, said: “Thousands of young people from across Wales are desperate to forge a career within Welsh agriculture, supporting food and farming. It is imperative that we work together to find a way forward that is both ambitious and creates opportunities for the next generation.”
The White Paper, which stands no chance of getting on the statute book before May’s election, hails the Welsh Government’s consultations with stakeholders. Which stakeholders the Welsh Government has consulted with is not identified in the White Paper. However, the text shows no signs of addressing long-standing concerns about the Welsh Government’s drive to marginalise farmers in favour of voices more congenial to its metropolitan base.
Janet Finch-Saunders MS, the Conservatives’ Shadow Minister for Rural Affairs, praised the letter.
She said: “Farming and agriculture is in the DNA of Wales. Despite the pressures the sector faces even in the best of years, it’s still a big draw for many young people, and a major contributor to the Welsh economy.
“Years of Labour’s mismanagement of the sector based on viewing Wales through the prism of Cardiff Bay led to this letter. I must agree with the NFU, the FUW, and Wales YFC when they say the direction of travel proposed by the Labour Government does not appear to reflect the uniqueness of Welsh farming.
“Labour also seems to be hell-bent on policy ideas that are not ‘Made in Wales’, but ‘Made in Cardiff Bay for Cardiff Bay’.
“In short, the letter is an indictment of years of Labour’s mismanagement of the agricultural sector, a sector like all others that will need specific and thoughtful future policymaking now we have exited the EU, and are looking towards a post-pandemic recovery.
“One thing is clear: recovery for agriculture and other sectors will not come from Labour, but from a Welsh Conservative Government as ambitious and dynamic as the agricultural sector.”
Local farmer sentenced for animal welfare offences
On 6 January 2021, at Aberystwyth Justice Centre the Magistrates passed sentence on Mr. Toby Holland of Maesgwyn, Blaenporth after he was found guilty in his absence of 10 charges relating to Animal Welfare and Animal By-Products offences.
Following the trial on 3 February 2020, a court warrant was issued for Mr. Toby Holland’ arrest in connection with these offences, and he was arrested by Police in December 2020.
The District Judge, in the trial held on 3 February 2020 heard that Animal Welfare Officers of the Public Protection team visited the farm on the 29 January 2019 and found a number of animal welfare issues. A sheep was found to be lying on its back unable to move and it was evident that it had been there for some time. Despite requesting that Mr. Holland seek veterinary assistance for the animal, a visit the following day had found that he failed to seek treatment for the animal and left it to die. He was found guilty for the unnecessary suffering of this sheep.
The Animal Welfare Officers found a barn containing 19 pigs. On seeing the officers the pigs were shrieking for food. The pigs were very thin and kept in an accumulation of muck with no dry lying area available. Within the pen were two dead pigs to which the live pigs had access. A post-mortem of one of the dead pigs found that the animal had likely died of starvation after finding no fat reserves remaining in the carcass.
The Veterinarian from the Animal and Plant Health Agency who attended the farm concluded that both the dead and live pigs had been suffering unnecessarily, and Mr. Holland was found guilty of these offences. He was also found guilty of failing to meet the needs of the animals, by failing to provide a dry lying area for the pigs.
The visit on 29 January 2019 also found a number of sheep carcasses strewn across the fields. It was clear that that they had been there for some time, and the live sheep had access to the same field. The District Judge found Mr. Holland guilty of failing to dispose of the carcasses in accordance with the requirements of a notice served under The Animal By-Products (Enforcement) (Wales) Regulations 2014.
A follow up visit on 30 May 2019 found the pigs were kept in a field where they had access to plastic bags, metal sheeting with sharp edges, and animal bones and skulls. These items could cause harm to pigs, and he was found guilty under the Animal Welfare Act 2006 of not providing a suitable environment for the pigs. Tthere were sheep carcasses in the fields, that Mr. Holland failed to collect and dispose in accordance with legal requirements. He was found guilty of a further offence under the Animal By-Products Regulations.
He was sentenced to 18 weeks imprisonment in total for the offences, and he was issued a disqualification order for 2 years from keeping any animals. The Local Authority were awarded £750 costs.
Following sentencing, Cllr Gareth Lloyd, Cabinet member for Public Protection Services, said: “The majority of farmers in Ceredigion have excellent farming practices, that ensures the highest standards of animal welfare. Unfortunately we must deal with a minority who for whatever reason fail to meet basic legal standards. I wish to thank the partner agencies who assisted the authority in the investigation, and the officers for their hard work in handling a difficult case.”
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