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Farming

Market volatility hitting family farms

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REBECCA EVANS AM – Deputy Minister for Farms and Food, visited the Haverfordwest Creamery to better understand the challenges facing the dairy sector and the plans that farmer-owned First Milk have in place for the future.
Haverfordwest Creamery processes the milk from nearly 300 local dairy farmers, who are all co-owners of the factory and located within a radius of 50 miles.
After completing a factory tour, which included speaking with local employees and a local farmer representative, the Deputy Minister said:
“In the last 12 months we have witnessed volatility and low prices in dairy markets around the world, which has had a direct impact on family farms across Wales. We are working closely with the industry, through our Dairy Task Force, to increase the demand and add value for Welsh milk and milk products.
“I believe that well-invested farmer-owned facilities, such as this creamery in Haverfordwest, are vital to the long-term vision of an efficient and sustainable dairy sector in Wales. One which delivers benefits for the wider rural economy.”
First Milk’s site director at the creamery, Paul Rowe commented: “Haverfordwest Creamery creates approximately £70 million of economic activity per year in West Wales. It processes over 260 million litres of local milk and turns it into 28,000 tonnes of award-winning cheeses, with over 100 local people employed in our cheese making and distribution operations.
“Haverfordwest Creamery is one of the most efficient in the UK and a large proportion of the investments we have made, over the last few years, have only been possible with the support of the Welsh government.
“Dairy markets are very tough right now and dealing with this is our immediate priority. However over the longer-term we firmly believe that the Haverfordwest Creamery is well placed to take advantage of the growing global demand for dairy products. We will continue to work closely with the Welsh government in developing these opportunities for the benefit of our local farming members and owners.”
Addressing the annual DairyCo conference at the University of Aberystwyth the following day (Friday, March 6), Rebecca Evans, announced the completion of the Welsh Dairy Review.
In October, the Deputy Minister announced she was commissioning an independent review of the Welsh dairy sector. She asked Andy Richardson, a member of the Dairy Task Force for Wales, to lead the review, which was commissioned in response to difficulties faced by dairy farmers last autumn, as well as an opportunity to review the voluntary code which had been in operation for two years.
She recently received the final report from Mr Richardson, who categorised his recommendations under five key headings: Leadership, Market Focus, Efficiency, Knowledge and Skills and the Environment.
The Deputy Minister said: “One of the things that has particularly concerned me about the recent cut in the price of milk is the impact on confidence and the possible knock-on effect this could have on investment within the sector.
“Andy Richardson’s review suggests that the mood, both amongst farmers and processors, may be more positive than perhaps is being portrayed and that is good news – without continued investment the future will look very bleak.
“As the price paid for milk continues to fall, many farmers and processors in Wales continue to operate under extremely challenging conditions on a daily basis, as the industry faces a very difficult period, one fundamentally driven by an over-supply.
“I am however confident there is a secure and profitable future for dairy in Wales. As I have said many times before, we have the land, the animals, the labour and the infrastructure. Evident from Andy’s review is that we also have the commitment, the passion and the willingness to change and to adapt that will see us through our current difficulties.
“It is so important to me that we continue to support the sector by taking on board the views of those working within it, and help to grasp the opportunities that exist.
“Following discussions with farmers and processors across Wales, Andy has been able to provide a vision of the future for the whole of the dairy sector which sets the direction for a more sustainable industry in the future.
“I would like to thank Andy for his work, undertaken in such a short period of time. I expect to publish the report, alongside the Welsh Government’s formal response, in the form of an action plan once I have given it due consideration.”
The Dairy Review was intended to draw on the work already undertaken by the Dairy Task Force but looked wider, taking views from all parts of the supply chain. It also considered what support the RDP 2014 – 2020 may provide to dairy farmers and the milk processing sector in Wales.
Meanwhile at Carmarthenshire’s recent NFU-Cymru conference, NFU President Meurig Raymond assured union members that the NFU was doing it all it can to assist its milk producing members get through the current price volatility when he spoke at the recent Carmarthenshire NFU Cymru conference.
Mr Raymond explained helping farmers within the milk industry was the Union’s top priority at present. He said he has met with the leading banks to ask them to help farmers at this difficult time. He has met with Government to discuss tax concessions. They’ve given evidence to the Efra Committee asking for more powers to the Groceries Code Adjudicator. The NFU has spoken to milk buyers, particularly First Milk. Mr Raymond also told those present how he has personally had some very difficult meetings with the major retailers and has had some assurances that they will stock more British dairy products in the future.
Mr Raymond said, “We are grateful to shoppers for the positive messages we’ve received as dairy producers and pleased that so many consumers have come out and backed British dairy farmers at this time. We’ve been inundated on social media in particular by shoppers wanting to know where they should buy their dairy products to help us most. In response we have said that shoppers have to check the labels to make sure they are definitely buying British produce – not something that looks British. The Red Tractor mark is a good quick indicator. I would like to take this opportunity to thank the British public for all their support at this time.”

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Farming

Aeron Valley farmers thinking creatively for their future

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A RESEARCH STUDY called Pweru’r Dyffryn delivered by Gweithgor Dyffryn Aeron cyf is looking into the feasibility of powering businesses and households in the Aeron Valley.

The study is looking into creating a community body to develop local renewable energy sources which would aim to create a source of income for powering the economy of mid Ceredigion. The study is also looking into creating a sustainable source of income to develop the local economy of the Aeron Valley.

The feasibility study is funded through Welsh Government Rural Communities – Rural Development Programme 2014-2020. This is funded by the European Agricultural Fund for Rural Development and the Welsh Government.

The concept of Pweru’r Dyffryn (Powering the Valley) was developed by the Gweithgor Dyffryn Aeron cyf. Many members of the Gweithgor are young farmers in the area. They want to not only secure a way of life and affordable energy, but also invest in their future.

The farmers of Dyffryn Aeron first set up the community cooperative company Gweithgor Dyffryn Aeron cyf in response to the closure of dairy factories in the valley. The Gweithgor helped a local company to re-open the site of one factory as a centre of local employment.

Through this they found that energy costs were high in the area and could threaten the long term sustainability of businesses in the area.

Euros Lewis is a Director of Gweithgor Dyffryn Aeron cyf and is Pweru’r Dyffryn’s Project Manager. He said: “Responding creatively is the way forward and that’s what these young farmers have done.”

From here the concept of Pweru’r Dyffryn was developed, which began with local consultations across the whole of the Aeron Valley. It asked local communities what form of renewable energy they did and didn’t want to see developed in the area and how would they want revenue from any potential scheme to be spent. The purpose of the consultations were to develop a model that will meet the needs and potential of the local communities first and foremost.

The feasibility scheme received LEADER support through the Cynnal y Cardi Local Action Group, which is administered by Ceredigion County Council.

The next step for Gweithgor Dyffryn Aeron cyf is the publication of a comprehensive report of the local consultation and its findings for future potential developments. The consultation’s early findings include that large scale wind turbines would not be welcome, while there is support for further research as to the potential of waterways and solar power for the generation of local, sustainable energy.

The development of the scheme will be long-term with challenges along the way but Euros Lewis believes to change the lives of the local people and to develop the local economy ‘that the basic principle is to act for ourselves and this is what we are doing.’

Councillor Rhodri Evans is Ceredigion County Council’s Cabinet member with responsibility for Economy and Regeneration. He said: “It’s very encouraging to see rural society in Ceredigion ambitiously looking to the future. Cynnal y Cardi supports them closely and I’m sure they wil see success in the future.”

All ideas are welcome on a rolling basis and project officers are at hand to assist you. The closing dates in 2019 for submission of expressions of interest are 9 September and 11 November. All submissions are welcome in Welsh or English.

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Farming

Farming faces zero carbon challenge

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AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.

Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.

Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.

According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.

“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.

“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.

“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.

“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.

“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

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Farming

HSE fees up 20%

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A FEE imposed on farm businesses found to be in breach of health and safety legislation has gone up nearly 20% to £154/hr.

Since October 2012 the Health and Safety Executive has operated a cost recovery regime, which means that businesses are charged for the costs of an investigation from the point a material breach has been identified through to the point when a decision is made on enforcement action.

If you are found to be in material breach of health and safety law, you will have to pay for the time it takes the HSE to identify the breach and help you put things right. This includes investigating and taking enforcement action. This charging scheme is known as a Fee for Intervention (FFI).

Robert Gazely, farm consultant and health and safety specialist for Strutt & Parker said: “A material breach is something which an inspector considers serious enough that they need to formally write to the business requiring action to be taken. Once an inspector gives a farmer this written notification of contravention (NoC), the farmer will be expected to pay a fee. 

“From 6 April 2019, the hourly charge has been increased from £129 to £154. The final bill will be based on the total amount of time it takes the HSE inspector to identify the breach and their work to help put things right.

“Of course, the primary reason for farms to be proactive in their approach to health and safety should be to protect themselves, their families and any employees.

“The number of people who are killed and injured each year on farms remains stubbornly high and the human cost of these incidents can be incalculable to those affected.

“But taking a safety-first approach should also help farm businesses to avoid a financial hit, as the HSE fees can mount up in the event of an investigation.”

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