The Farmers’ Union of Wales has highlighted the depression affecting Wales’ farming industry and the need to use Rural Development funds to help farm businesses.

Speaking alongside Deputy Minister Rebecca Evans at the Wales Farming Conference (June 4), FUW president Emyr Jones told delegates that Welsh farmers are facing the most challenging and difficult period for a decade, as a severely depleted CAP budget, coupled with ongoing uncertainty over what form the Basic Payment Scheme will take, added to extreme pressures caused by a crash in farm gate returns and farm incomes.

“Put simply, farming once again finds itself in depression, and the anger out there amongst the industry is evident,” said Mr Jones.

Describing the Strategic Framework for Welsh Agriculture consultation document launched by the Deputy Minister at the conference, Mr Jones said it contained aspirations for agriculture which few could disagree with, especially given the difficulties currently facing the industry, with agricultural prosperity and profitability being at the core of the framework.

Comparing the document with previous strategies, Mr Jones told delegates that “I’m glad to say that the strategy framework proposals being launched today differ significantly, even radically, in that, if adopted, this is not some 200 page strategy document which will join the others on the shelf.”

“Thanks to the joint work of government and industry bodies, it proposes the formation of an umbrella partnership group to oversee a short and to the point list of key objectives, most notably achieving and sustaining profitability.”

However, Mr Jones warned that the ability to influence many key factors which would help achieve these objectives were limited.

“We cannot control oil prices or exchange rates, and only God can change the weather which can make or break a profitable year.

“But the Rural Development Programme is one key toolbox we do have at our disposal.

“For our industry, and in particular our most important food producers who, whatever the final decision on the Basic Payment model is will lose the most significant amounts of money, the RDP is a lifeline.”

Mr Jones reminded those present of former minister Alun Davies’ commitment to using RDP funds to invest in the future of agriculture and equip it to cope with reductions in financial support and market failure, and welcomed the Deputy Minister’s commitments to strategic initiatives aimed at the red meat and dairy industries in particular.

“I welcome the Deputy Minister’s commitments to strategic initiatives aimed at the red meat and dairy industries in particular, and would urge Welsh Government to ensure that the partnership approach which it has signed up to is adopted when it comes to putting more flesh on the bones of the RDP so we can achieve the key objectives identified in this document, most importantly the profitability and prosperity of agriculture, without which all other objectives for our rural communities and landscapes become unattainable and irrelevant.”

One of the most influential figures in Welsh agriculture will give her views on the industry’s current situation at the FUW’s annual general meeting at the MedRus conference centre on Aberystwyth University’s Penglais campus on Monday June 15.

Deputy farming and food minister Rebecca Evans will be the guest speaker at the event. Mrs Evans was elected to the National Assembly for Wales in May 2011 to represent the Mid and West Wales region.

She completed a history degree at the University of Leeds before attending Sidney Sussex College, University of Cambridge, where she received a Master of Philosophy Degree.
She has served on the National Assembly's environment and sustainable development committee and its CAP task and finish group, the health and social care committee and the children, young people and education committee.

Her wider political interests include health, social care, equalities, welfare reform and tackling poverty - including rural poverty.

Coffee will be served from 9.00am until 9.45am when FUW president Emyr Jones will formally open the conference. Following a question and answer session with the minister, the union’s internal, external and staff awards will be presented.

Over ?recent  months, the Farmers’ Union of Wales has met with many major UK retailers to highlight the current and future concerns of the Welsh dairy sector following the sustained downturn in dairy commodity prices.

“Sustained low prices, coupled with the recent review of the dairy sector in Wales and the abolition of milk quotas in April, created a perfect storm and presented a prime opportunity for the union to actively discuss dairy farmer concerns and aspirations with UK retailers,” said FUW senior policy officer Dr Hazel Wright.

Many of the major retailers have attempted to foster public loyalty by publicising the prices paid to farmers on retailer aligned contracts and the union acknowledges that these prices tend to be at the higher end of the league table.

However, in Wales, such contracts account for just 4 percent of the milk produced  and this is very low compared to the 25 percent of milk production that is on retailer aligned contracts in the UK.  With this in mind, the FUW has been a strong proponent of expanding the Groceries Code Adjudicator’s powers to cover all dairy producers and not just those on retailer aligned contracts.

During discussions with retailers, the union aimed to ensure that time was given to highlight the impact of retailer price battles and the associated effect that such ?aggressive competition has  upon Welsh and UK producers.

Dr Wright stressed that price wars remain one of the most prominent tactics in UK retailer armouries but warned that this tactic inevitably leads to important and staple products, such as those involving dairy, being ?used in a bid to enhance ?market shares?.

“It is imperative that Welsh dairy producers are not expected to enlist in retailer price battles.  Is it not, and never has been, the job of the producer to fund supermarket price cuts or to enhance a retailer’s market share.  Sacrificing producers to a retailer price war can only function to further break an already fractured supply chain,” added Dr Wright.

Alongside concerted lobbying on the powers conferred to the Groceries Code Adjudicator, the FUW would also seek to ensure that the Competition and Markets Authority (CMA) takes greater responsibility for ?investigating and reviewing the  UK dairy markets in order to improve the way in which ?the sector works for both producers and consumers.

“The CMA is the UK’s lead competition and consumer authority and has the power to scrutinise the functioning of markets for the benefit of businesses and consumers.  Much of the work of the CMA has focused on issues pertaining to the payday lending market and the union believes that the groceries retail market would benefit from similar scrutiny,” said Dr Wright

“Whilst the FUW found the meetings to be informative and constructive, there remains much work to be done before the UK dairy supply chain fully works to the benefit of Welsh producers.  The union hopes to continue its working relationship with UK retailers in the future and looks forward to being an active and prominent member of the Welsh Dairy Leadership Board that was mooted in the Welsh dairy review,” added Dr Wright.

[caption id="attachment_5318" align="aligncenter" width="284"] New FUW insurance adviser, Clare Morris[/caption]

The Insurance Services arm of the Farmers’ Union of Wales has appointed a new insurance adviser at its head office in Aberystwyth.

Ms Clare Morris, 28, who lives in Capel Bangor with her partner Jason, has joined the 60 person strong Insurance team at the beginning of April and will provide administrative support to the Insurance services branch network across Wales.

“I am looking forward to a progressive career within the FUW Insurance Services, and hope my wealth of knowledge will be of an asset to the company,“ said Ms Morris.

Prior to joining FUW Insurance Services, Clare worked for local broker Rees Astley where she proved herself a valued member of staff.

FUW Insurance Services managing director Mark Roberts said: “This new appointment is in addition to our recent creation of the sales manager role for David Lush, the claims handler role for Sally Phillips in Lampeter and the insurance administrator roles for Sophie Rees and Becci Heath in Newtown and Carmarthen.

“Area officers’ will soon have more support and assistance than at any time in our 60 year history; we will be launching new schemes through new insurers with rates, cover and service that will be the envy of our competitors. Our future is looking bright!”