Connect with us
Advertisement
Advertisement

Farming

First Milk simplifies pool pricing

Published

on

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.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Farming

Plan for ‘collaborative approach’ to tackling rural crime issues

Published

on

THIS week (Mar 9) Police and Crime Commissioner Dafydd Llywelyn chaired a strategic meeting with key stakeholders to identify collaborative opportunities to tackle rural and wildlife crime in the Dyfed-Powys area.


Following a meeting with the Farming Unions in Wales earlier this year, Police and Crime Commissioner Dafydd Llywelyn is keen to establish a Strategic Partnership Working Group with key stakeholders that will aim to identify ways of working collaboratively to tackle some of the rural and wildlife crime issues in Dyfed-Powys.


Dyfed-Powys Police have recently appointed a Sergeant for the Rural Crime Team, and the Police and Crime Commissioner has been keen to consult with key stakeholders to gain an input from partners to support the development of a new Rural Crime Strategy for the Force.


Key Stakeholders that were invited to be part of the strategic group include both NFU Cymru and FUW unions, as well as local authorities, National Parks, RSPCA and many others.
Police and Crime Commissioner, Dafydd Llywelyn said: “I had positive discussions with representatives from both unions earlier this year to highlight some of the rural crime issues in the Dyfed-Powys area.


“One of the priorities identified was the need to take a collaborative approach to tackling rural and wildlife Crime, and the meeting with several key partners today was an opportunity to develop discussions and ideas further”.


Earlier in March, PCC Dafydd Llywelyn published a Rural Crime bulletin, which highlights some of the work that has taken place recently in the Dyfed-Powys area, and cross border collaborative initiatives.


PCC Dafydd Llywelyn noted that this multi agency partnership will aim to build on some of the great work that is already happening, and said;  “This meeting today comes a year on from the successful St. David’s Day Conference focusing on Rural Crime that I held at Police Headquarters last year. The last 12 months have been like no other but sadly crime and incidents affecting the rural community have continued.


“Today’s multiagency Strategic meeting was an opportunity to present the new Sergeant for the specialist team, and to discuss a new website that we are developing in partnership with North Wales Police to provide key crime prevention messages to the agricultural industry – the Future Farms Cymru initiative.


“I’m grateful to all partners who attended the meeting today, and I now look forward to take all comments on board as we look to re-energise and refocus the work of the Dyfed Powys Rural Crime Team.”

Continue Reading

Farming

NFU Cymru ‘responds robustly’ to WG

Published

on

NFU CYMRU has said that many proposals within the Welsh Government and Defra’s Welfare in Transport consultation will cause significant disruption to livestock transportation in the UK.

In a robust response to the joint Welsh Government / Defra consultation, the union has stressed the significant impact the proposals would have on the livestock and poultry sectors, and raised concerns that if the proposals are implemented, they will fail to deliver any meaningful benefit to animals’ welfare.

Wyn Evans, NFU Cymru Livestock Board Chairman said: “In order to ensure the best possible welfare outcomes, the main priorities should be the animal’s fitness to travel, loading and unloading, driver training and experience, rather than the length of the journey or the external temperature at the time of transport.

“We firmly believe that the current regulations for domestic transport already deliver high welfare, as a result of the standards, cleanliness and adaptability to different weather conditions of transport boxes in the UK. But as an industry, we want to strive for even better. We believe that in order to do that there should be more focus on certified training and providing clearer, sector-specific guidance, particularly during loading and unloading rather than what is proposed in the consultation. Good welfare and healthy livestock go hand in hand; safe arrival at a destination, be that at market or abattoir, must be and is a priority.

“The transporting of livestock is an integral part of UK food production. The suggested changes to journeys based on duration and weather conditions would cause serious delays and disruption, potentially damaging welfare outcomes, while changes to vehicle requirements would add significant costs. It will also lead to many more journeys being made, increasing greenhouse gas emissions, which work against both farming’s and the government’s net-zero targets.

“Turning to the part of the consultation on live exports, we have inputted our views into a proposed NFU assurance scheme, which is detailed in an appendix in the response. This would be extremely effective in delivering welfare outcomes at the same time as maintaining this trade, as assessing the animals’ health and reporting back to producers is a fundamental part of the scheme.”

Richard Williams, Chairman of NFU Cymru’s Poultry Group said: “Looking at the month of January for example, over the last three years on average there were 10 days where temperatures were five degrees or less. If the proposals were implemented to stop transport at this temperature, no broilers could be collected off-farm in those days. If we had a prolonged cold snap; this would have a massive effect on the food chain.  

“With any policy developments government makes, it is essential they are based on the latest evidence.  We have an industry to be proud of, with world-leading standards, and that includes our current transportation requirements for all farmed livestock.”

Attachments area

Continue Reading

Farming

Export push for Welsh Lamb

Published

on

PGI Welsh Lamb will feature in export marketing events in Dubai and Qatar over the coming months, despite Coronavirus restrictions, with the industry aiming to continue a major growth in exports to the Middle East region.


Hybu Cig Cymru – Meat Promotion Wales (HCC) will have a presence at the upcoming Gulfood 2021 trade show during February 21-25 with support from the Welsh Government via the Enhanced Export Fund. The event, which takes place in Dubai, is the first global trade show to take place in nearly a year due to the Coronavirus pandemic. In-market representatives will promote PGI Welsh Lamb to buyers at the Covid-secure event.

The Middle East is an important and growing export market; newly published export data shows that the volume of UK sheepmeat exports increased by 18.3% on levels seen in 2019 and a hefty 368% compared to 2018. HCC helped to secure four new retailers as stockists of PGI Welsh Lamb in Qatar over the last year along with a high-end online retailer in the United Arab Emirates.


HCC’s Export Development Executive, Deanna Jones, explained ‘Welsh Lamb exports have grown rapidly in the Middle East over the last few years and the market now sells Welsh Lamb through wholesale, retail and foodservice.’
‘Whilst we will not be attending any events in person, it is important that Welsh Lamb has a presence at Gulfood 2021 and other trade events as we continue to build the customer base and profile of our products.’


Lesley Griffiths, the Minister for Environment, Energy and Rural Affairs, said: “I am very pleased we have been able to support Hybu Cig Cymru as they continue to promote Welsh produce internationally – particularly given the increasing export value of the Middle East to Welsh Lamb producers.


“While restrictions mean delegates will not be able to attend in person, it is vital that Wales continues to have a presence at trade events such as Gulfood 2021, and I am very pleased Wales will be at the table in Dubai.”

Continue Reading

Popular This Week