Despite the fact that the Government referred to the Schmallenberg disease as “low impact”, losses have continued to rise. The disease is present on over 900 farms across Great Britain with losses of up to 50% of lambs being reported. No vaccine is available yet.
Mark Lynas, environmental campaigner and leading figure in the anti-GM movement has changed sides. In a recent speech he apologised for attacking GM and now considers it has much to offer in securing world food supplies.
The poor wheat harvest has forced Hovis to abandon its “100% British wheat” pledge. Up to one-third of its wheat supplies will now be imported from Europe.
A leading milk producer group has forecast that production costs will remain around 33p/litre for the foreseeable future with feed costs unlikely to fall. UK milk production fell in December to the lowest level for nine years.
Tractor sales, in the UK, fell by 1% last year compared to 2011. Sales peaked in the first half of the year, boosted by higher profits and tax incentives but fell away significantly in the second half.
The Welsh Government is upset at the way that DEFRA has moved to abolish the Agricultural Wages Board for England and Wales and is considering setting up a Board solely for Wales.
One of the major producers of organic fruit and vegetables has voiced concern over the future of the sector. Falling sales through supermarkets has led to a 25% decline in the market over the last four years leading to far fewer farmers considering entering the sector.
Farm borrowing rose by 9%, to £13.5bn, in the year to October 2012. The rise was driven by a need for extra funds for both working capital, following poor sales and a greater investment particularly in renewable energy schemes.
FarmWeb News 14/01/2013
Despite the fact that the Government referred to the Schmallenberg disease as “low impact”, losses have continued to rise. The disease is present on over 900 farms across Great Britain with losses of up to 50% of lambs being reported. No vaccine is available yet.
Mark Lynas, environmental campaigner and leading figure in the anti-GM movement has changed sides. In a recent speech he apologised for attacking GM and now considers it has much to offer in securing world food supplies.
The poor wheat harvest has forced Hovis to abandon its “100% British wheat” pledge. Up to one-third of its wheat supplies will now be imported from Europe.
A leading milk producer group has forecast that production costs will remain around 33p/litre for the foreseeable future with feed costs unlikely to fall. UK milk production fell in December to the lowest level for nine years.
Tractor sales, in the UK, fell by 1% last year compared to 2011. Sales peaked in the first half of the year, boosted by higher profits and tax incentives but fell away significantly in the second half.
The Welsh Government is upset at the way that DEFRA has moved to abolish the Agricultural Wages Board for England and Wales and is considering setting up a Board solely for Wales.
One of the major producers of organic fruit and vegetables has voiced concern over the future of the sector. Falling sales through supermarkets has led to a 25% decline in the market over the last four years leading to far fewer farmers considering entering the sector.
Farm borrowing rose by 9%, to £13.5bn, in the year to October 2012. The rise was driven by a need for extra funds for both working capital, following poor sales and a greater investment particularly in renewable energy schemes.
Read MoreFarmWeb News 31/12/2012
The National Audit Office has criticised the fragmented nature of government farm monitoring. In the period 2011/2 nine different bodies made 114,000 visits to English farms to check on compliance with subsidy rules and for disease monitoring and testing. The total cost was £47m and much of the information collected was duplicated. The NFU (E&W) complains that little effort has been made to streamline the inspections as has already been done in Scotland.
A month after announcing its exit from the UK, Vion has announced that the pork processing operation has been the subject of a management buy-out securing 4,000 jobs. Negotiations on the sale of the poultry and red meat divisions continue with Tesco agreeing limited support to producers to guarantee supplies in the interim.
The Food Standards Agency has advised that routine BSE testing of cattle intended for human consumption can now cease. There have been no cases of BSE for three years.
The ten thousandth Higher Level Stewardship scheme in England has been signed bringing the total land covered to 977,000 hectares. Two thirds of English farm land is under one of the stewardship schemes.
British pig farmers are concerned that 13 European countries will not be able to comply with the sow stalls ban that comes into force on 1st January 2013 and have called for Government and EU action. Stalls have been banned in Britain since 1999 and the resulting higher cost of production puts producers at a disadvantage as 60% of the pig meat we consume is imported.
The OFT high profile prosecution of Tesco, in 2011, for colluding with others to fix cheese prices, has suffered a blow as an appeals tribunal has rejected much of the evidence. A significant reduction in the £10m fine looks likely. The OFT has already paid libel damages of £100,000 to Morrisons.
Following further consultation the Government has confirmed that the Agricultural Wages Board for England and Wales will be abolished in October 2013 along with 31 subsidiary committees. The Boards in Scotland and Northern Ireland will remain.
Read MoreFarmWeb News 18/12/2012
The farm minister has enraged environmental groups by calling for the use of GM food technology in Great Britain. The groups see the comment as a clear statement of government intent. Over 160m hectares of GM crops are grown around the world but, apart from a few trial plots, they are currently banned in the EU.
The number of cases of the Schmallenberg virus jumped by almost 300 last month to 715 with the West Country being the worst affected. There are 453 cases in cattle and 262 in sheep. The disease is spreading much faster than anticipated.
Within the last month the average retail price of four pints of milk has risen from £1.18 to £1.29 as supermarkets move away from using it as a loss leader. Farming leaders see this as a positive move as prices paid to producers continue to rise but profitability remains a problem. DEFRA has made £5m available to encourage dairy farmers to co-operate and look for new market opportunities.
As was widely expected, the EU has now confirmed that the reform of the CAP will not take effect until 2015. Negotiations between the member states have been beset with problems and disagreements pushing the implementation back by twelve months.
Despite stricter testing procedures and increased movement controls, the incidence of TB in cattle rose for the third consecutive year. The number of cattle slaughtered, in the UK, in the twelve months to August 2012, increased by 5% to 24,685 at a total cost to taxpayers of £91m. The EU has confirmed that vaccination of cattle is some years away.
The fall in potato production in the UK has been mirrored across northern Europe with an overall reduction of 17%. Potato prices in the UK have risen by over 100% on last year.
The poor weather has increased the risk of failure of some autumn sown crops. Experts consider that 7% of the wheat crop is at risk and 5% of the barley crop. Oilseed rape is likely to be the worst hit with 20% forecast to fail.
A recent survey of agricultural rents shows a sharp increase in the last twelve months. Influenced by stronger commodity prices, rises have averaged 25%. The highest rises were in Eastern England at 32%.
Read MoreFarmWeb News 03/12/12
Russia has agreed to lift the ban on imports of British lamb and beef, imposed in 1986 following the BSE outbreak. Russia generally takes a fairly tough line on the inspection and standards of imported food products. The Russian market could be worth up to £80m to beef and lamb producers, over the next three years. This breakthrough follows recent positive efforts by DEFRA to increase food exports to China.
The potato crop in GB is set to be the lowest since 1976. The area of crop planted was down 5% on 2011 and yields have fallen by 21% to produce an estimated 4.5m tonnes. Over 10% of the crop is still in the ground and some farmers are considering leaving it until spring, in the hope ground conditions will improve. Retail prices are already starting to rise.
Despite receiving higher prices, pig producers are still losing an average of £4 per animal with little sign of the gap being closed. UK pork exports reached 15,700t in September, the highest for twelve years with 1,400t going to China.
In an effort to cut the number of fatalities and serious injuries to young rural drivers, The National Federation of Young Farmers Clubs is rolling out a driver training programme “Drive it Home”, to its members.
The Dutch meat processor ‘Vion’, has announced its decision to exit the UK. Vion is a major player in the UK market with 38 plants and 13,000 employees, turning over £2.4bn. Vion processes 30% of UK pigs. Tight margins and strong competition are blamed for the move. Buyers are being sought for the business.
A leading scientist has criticised the Welsh Government’s policy of vaccinating badgers against TB. He maintains that there is no track record or scientific evidence that this course of action will be effective. Over 1,400 badgers have been vaccinated in West Wales in the first part of the five year programme.
After much criticism in past years, the Rural Payments Agency now believes it has turned the corner on service to customers in England. It aims to improve on last year and make payments to 91% of claimants by the end of December. Most Welsh and Scottish farmers will also receive their money this month.
Read MoreFarmweb News 20/11/2012
UK milk production continues to decline with October down 6.5% on last year. So far the year on year fall is almost 2.3% despite price increases to producers.
Whilst EU budget negotiations continue there are indications that the agricultural sector will be hit harder than first thought. A compromise paper from the President contains deeper cuts to agricultural and rural support. The budget is unlikely to be agreed before the January 2013 deadline.
There have been further incidents of sheep being butchered in the field, by thieves, in Greater Manchester and Devon. The theft of sheep, in general, is on the rise, driven by high retail meat prices and costs farmers over £6m annually.
The Dept of Energy is consulting stakeholders on the future of Wayleave payments made to landowners for access to their land by the utility companies, for power lines and the like. There is concern that the life span of agreements will be lengthened or made permanent with income being reduced, leading to an adverse effect on land values.
The HSE has begun its Safety and Health Awareness Days programme for farmers with the first five being oversubscribed. A further 22 such days are planned.
As part of its global restructuring plans ING UK is to pull out of the agricultural leasing market in the UK. No new deals will be signed after 30th November and the existing book will be run off.
Tesco has announced the offer of 36 month contracts to pig and beef producers in its Sustainable Farming Groups. Premium prices will be paid together with regular reviews of input costs. Tesco sources 75% of beef and 66% of fresh pork from UK producers.
It is likely that a vaccine against the Schmallenberg virus, which causes birth defects in new born lambs and calves, will become available later this year. Signs of the virus, which arrived recently from the continent, have been found across the UK.
The Government is expected to announce the appointment of the Grocery Codes Adjudicator before the end of the year. The legislation to enable his powers should be in place early in 2013. The Adjudicator will be funded by a levy on the largest retailers.
A new research programme to find a more effective vaccine against foot-and-mouth disease has been announced. The programme has £5.6m in funding and will run for five years. Existing vaccines are difficult to administer and have a limited use.
Read MoreFarmWeb News 06/11/2012
Low yields, higher input costs and increased wastage mean that many potato growers are losing money on every tonne. Harvest is almost three weeks late and with most potatoes grown on fixed price contracts, producers have little scope to recoup their losses. The average cost of production is estimated at £200/tonne this season.
EU pig production is forecast to fall by 2% next year as producers exit the sector in advance of the introduction of the sow stall ban. Germany, France and Poland are likely to be hardest hit with production down 5%. Tighter supplies and continuing strong demand from China will keep prices firm. Tesco has announced higher payments to both pig and poultry suppliers.
Sainsbury’s has come in for more criticism following its decision to drop the Red Tractor logo. Industry bodies and consumers have voiced concern that it will make it more difficult to identify British food products. Meanwhile, Waitrose has confirmed its support for the logo and called for its profile to be raised.
A Charolais bull has sold for a world record 100,000gns (£105,000) at Stirling. The buyer is the Livestock Capital Company an American concern. The bull will remain in the UK with the semen exported to the USA.
Farmers Weekly has launched a farming education website, Farmers Weekly Academy. The Academy is aimed at farmers, farm workers and advisers and looks to build on existing industry training initiatives.
Latest information from the police Plant and Agriculture Intelligence Unit shows tractor thefts have fallen by 47% in the twelve months to June 2012. The fall is mainly due to increased security on tractors and the growing success of the national registration scheme, CESAR. The unfortunate consequence is that quad bike thefts have risen by 25% as they now present an easier target.
The wet conditions have led to an increase in mud being deposited on rural roads by farm machinery. Herefordshire has been particularly badly affected and farmers have been warned that they will be prosecuted if accidents are caused.
Figures from the HSE show that there were 33 deaths in agriculture in the last year, a reduction from the previous year (35) but still much higher than any other industry sector. Non-fatal injuries rose by 9% although under-reporting is thought to exist.
Read MoreFarmWeb News 25/10/2012
The badger cull has been postponed until next summer. The number of badgers in the two pilot areas is higher than originally expected and farmers could not be certain of culling the required percentage, in the time available, to make the pilot a success. The NFU (E&W) requested the postponement and DEFRA agreed. Meanwhile, stricter controls on TB testing and cattle movement are to be introduced on 1st January 2013 in an effort to minimise the spread of the disease.
Drilling of winter crops is being seriously affected in northern and western areas by the continuing heavy rainfall on saturated ground. Planting conditions are described as the worst for thirty years and are likely to adversely impact on yields. Farmers thinking of sowing in spring, instead, may face a shortage of seed.
Public concern about large scale livestock units has led to the refusal of planning permission for a 1,000 cow dairy in Wales. The local authority was originally in favour but withdrew permission after a review. A farming industry think tank has highlighted the need to change public perceptions of large scale units.
A new set of rules covering anaerobic digestion plants will come into force in January together with a revised set of risk criteria.
Figures from a DEFRA survey show that the dairy herd has stabilised at 1.8m head after six years of decline. Both sheep and pig numbers have increased by 1% but the latter are expected to decline again in the face of high feed costs.
Provisional figures show the full effect of the poor weather on the harvest, with wheat production down 13% to 13.3m tonnes. Yields averaged 6.7 tonnes/hectare, the lowest since 1988. Barley was unchanged at 5.5m tonnes with oilseed rape down 7% to 2.6m tonnes. The UK is expected to become a net importer of wheat for the first time in ten years.
Tesco has confirmed that it will continue to carry the Red Tractor logo on its products after the announcement by Sainsbury’s that they were dropping it because of customer confusion. Critics have suggested that the level of foreign produce sold by Sainsbury’s is a factor in their decision.
In July 2010, the Government announced its intention to abolish the Agricultural Wages Board and associated bodies. It has now decided to consult all stakeholders on the matter. The NFU (E&W) remains in favour of the abolition.
Read MoreFarmWeb News 09/10/2012
One of the latest harvests in recent years is finally drawing to a close with only the last few acres of wheat in northern Scotland remaining to be cut. Yields are down by up to 15% and quality has suffered, in many areas, due to the adverse weather. World wheat prices have risen by 40% since May driven by poor harvests in the USA and Russia.
Production of an effective vaccine against bovine TB is still some years away despite over £38m being spent and committed since 1998. The human vaccine BCG is the leading candidate for use and research continues. Vaccination is banned under EU rules due to the difficulty in distinguishing between infected and vaccinated animals but a recently developed test may overcome this. Vaccination is expected to be no more than 70% effective.
Pork prices in the EU are likely to remain strong for the next two years due to export demand, high stock prices and the ban on sow stalls. The latter, together with rising feed costs, has driven producers out of the sector. The EU sow herd has declined by almost 4% in the last year.
The proposed merger of four Scottish agricultural colleges has taken effect. Barony, Elmwood, Oatridge and the SAC have come together to form Scotland’s Rural University College (SRUC). The new college will provide food and agriculture courses for 8,000 students and a business consultancy for 12,500 clients.
The 2012 Single Farm Payment will be worth almost 8% less than last year following the announcement of the official conversion rate of the euro into sterling.
The new voluntary Code of Practice for Milk Production contracts has been agreed by all of the stakeholders. The main points of the code being ancouraged are that 30 days notice of a change of price or terms must be given to the farmer and, the formation of producer groups in order to negotiate with processors. Most existing contracts will need to be changed and progress will be reviewed in 12 months. If the voluntary code does not work legislation is threatened.
There is concern amongst sheep farmers after DEFRA disclosed that the Schmallenberg virus has now been found on farms in Yorkshire and Northumberland. The disease, which is transmitted by midges, causes abortions and birth defects in lambs. It first spread to southern England from the Continent last year.
Read MoreFarmWeb News 25/09/2012
A provisional badger control licence has been issued for the Gloucestershire trial pending the resolution of some outstanding details. The NFU is confident that the culling will start in mid-October, as planned. It needs to be completed before the start of the closed season for badger trapping and shooting on 1st December. Meanwhile, the EU Commission has criticised the Welsh decision to vaccinate instead of culling saying that there is no scientific evidence to support it.
Prices paid to farmers for milk are starting to move up again with increases announced by Wiseman, The Co-op, Tesco, Dairy Crest and First Milk on the back of lower production and rising input costs. The cheese maker, Wensleydale Creamery is also raising its price.
There are calls amongst EU members to extend sugar quotas until 2020 to give producers more time to invest in processing capacity. Quotas are due to end in 2015 but views are mixed on the ability of EU farmers to compete effectively in the world market.
The EU is proposing to limit the production of biofuel from food-based crops, such as wheat and oilseeds, to 5% of overall use. The move is in response to rising food costs and intense lobbying by opponents and is supported by UK poultry farming leaders. Others see the proposal as short sighted in the light of Europe’s dependency on imported fuels.
The NFU (E&W) has announced a new frost damage insurance scheme for sugar beet starting with the 2012/3 growing season. The scheme is underwritten by NFU Mutual and all beet contracted to British Sugar is automatically included. The cost of the insurance has been incorporated in the contract price for the season.
An investigation by the BBC shows that the wet summer has cost rural businesses over £1bn. Poor quality and lower yields have cost farmers £600m and information from tourist bodies and the Caravan Club indicate a 12% fall in visitor numbers worth over £450m. In addition, the CLA estimates losses of £240m from the cancellation of shows, events and festivals.
The first ever sale of pedigree Alpacas was recently held at Reading with thirty animals entered. The average price paid was almost £8,000 with two animals each fetching a top price of £10,500.
With the annual sheep sales now well underway, a strong market was in evidence, earlier this month, at a Texel sale in Carlisle. The top price for a ram was 14,000 guineas (£14,700) with several others breaking through the 10,000 guineas mark.
Read MoreFarmWeb News 08/09/2012
The latest Rural Growth Network, covering Devon and Somerset, has been launched by the Government with an investment of £2.9m. The Network is forecast to create 1,100 new jobs and boost the local economy by £58m.
A world shortage of bacon and pork products is forecast because of soaring feed costs. Both the USA and China are acting to support their pig industries as the expected poor harvest makes pig feed unaffordable for many producers. Pig slaughterings are up 3% in the UK as producers seek to cut costs by de-stocking.
A barn and its contents of 800 tonnes of hay, in Surrey, were destroyed by fire caused by the spontaneous combustion of the damp hay bales, a relatively rare event these days.
Tight supplies and rising input costs are combining to push up the prices of dairy products. Butter prices are up 5% and both cream and skimmed milk powder rose 10% in July/August.
The farm minister, Jim Paice, lost his job in the recent Government reshuffle and is replaced by Lib Dem MP David Heath. Mr Paice was respected by farming leaders who have expressed surprise at the move which was not expected. Caroline Spelman has also departed, replaced by Owen Paterson.
NFU has issued a check list for safer livestock handling as the time approaches for livestock to be moved indoors. The check list reinforces good practice in an area that has seen 81 deaths in the last decade.
Agricultural borrowings rose to an all time high of £12.8bn at the end of June, an increase of 6.5% on June 2011. Farm deposits stood at £5.3bn. Barclays Bank confirmed that borrowing terms were generally easier for farmers as banks remain committed to the sector in the long term.
The badger cull, originally timed for the Autumn, may be delayed by a combination of factors. There are still legal and political challenges to be overcome and the ministerial changes at DEFRA together with the lateness of the farming season, this year, have cast doubts over the start date.
Read MoreFarmWeb News 23/08/2012
DEFRA has released details of its proposed plan for the regulation of pesticide use in the UK. The plan will ensure that the UK abides by all EU directives and relies on voluntary schemes to meet this target. The proposals have been broadly welcomed by the industry and criticised by some nature campaigners as not being tough enough.
The slow ripening of crops and continual showers are holding up harvest in many areas. Quality and yields are mixed with wheat and oilseed looking poor. These factors, together with drought problems elsewhere in the world, helped push UK wheat prices through the £200/tonne level on futures markets.
Dairy farmers are continuing their protests over the price they are paid for milk, with both processors and retailers being targeted. A conference has been held to discuss the setting up of producer organisations that would give farmers more power in their price negotiations with processors. The Government is keen to see such a move and is providing financial support.
The Ensus bioethanol plant on Teesside is reopening after a 15 month shut down. The plant, the largest wheat based processor in Europe, closed due to adverse trading conditions which have now improved following the ban on the import of subsidised US ethanol. The plant will process 1m tonnes of locally grown wheat per year.
A shortage of land for sale is pushing average prices in England towards £9,000/acre. Sales usually peak in the second quarter but the amount of land for sale fell by 40% this year compared to 2011. Land sales are at their lowest for five years.
TB has been identified in another herd in Dumfriesshire, Scotland; the last incident was in April 2012. Scotland remains officially TB free and these two outbreaks should not jeopardise that status.
The Government has announced an investment of £6.7m to create two Rural Growth Networks in Cumbria, Northumberland and Durham. The Networks will generate new businesses and support existing ones leading to the creation of 1200 new jobs in these areas.
Read MoreFarmWeb News 13/08/2013
The hot dry spell has brought the winter barley harvest forward with quality and yields said to be better than expected. The acreage of wheat to be harvested is the lowest since 2001. Oilseed rape yields, so far, are 10% up on 2012. Early results across the country are variable.
The market in farm land returned to near normal in the second quarter of this year with over 50,000 acres changing hands in what is always the busiest period for sales. This compares with 35,000 acres last year. Large arable farms (over 750 acres) remain in very short supply.
With the start of harvest, the HSE is warning about the dangers of grain dust and its associated additives and contaminates when handling grains. The number of occupational asthma cases in agriculture is double the national average.
DEFRA has announced measures to help restrict the spread of TB from the badly affected south-west area. The new measures will apply from October 2013 to counties bordering TB areas and involve more testing and movement restrictions. The Welsh government is offering grants to farmers to vaccinate badgers in low risk areas.
The value of commercial forests of spruce, in northern England and Scotland has risen by 30% over the past two years. This continues the strong growth in value seen since 2000, driven by world demand. The UK imports 65% of its timber requirements.
It is estimated that rural theft cost £42m in 2012, a fall of over 19% on the previous year. Thefts of tractors and quad bikes fell by 32% and 17% respectively. Livestock thefts rose slightly. Tools, quad bikes and fuel were the most targeted items.
A Leicestershire farmer has been charged with manslaughter after a rambler was killed by a bull on a public footpath on his farm. The charge of manslaughter by gross negligence has been brought by the Crown Prosecution Service.
Only 13 of the 27 EU member states, including the UK, have fully complied with the ban on sow stalls that came into effect in January. Infringement proceedings have been started against nine countries, including France and Germany.
Sales of farm machinery, in the first half of 2013, have fallen by 10% over 2012. Tractor sales have led the way being almost 20% down. The sales reflect the harsh winter and subsequent squeeze on incomes.
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