[caption id="attachment_5840" align="aligncenter" width="1024"] (l – r) FUW Carmarthenshire county chairman Brian Richards, FUW milk and dairy produce committee chairman Rhydian Owen, FUW president Glyn Roberts, Glanbia Cheese CEO Paul Vernon, HSBC regional agriculture director - Wales and South West Euryn Jones, Castell Howell and president of the Welsh Dairy show committee Brian Jones MBE[/caption]

Market volatility is not a UK or EU problem - it's a global problem and a trend we will continue to see – is what delegates heard when Glanbia Cheese CEO, Paul Vernon, addressed the Farmers’ Union of Wales eve of dairy show function in Carmarthen on Monday October 19.

Paul Vernon has worked in the dairy industry for the past 28 years and prior to this he held a number of senior sales positions with a leading fast-moving consumer goods (FMCG) company.

He commenced working in the dairy industry with a Co-Operative based in Northern Ireland and for the past 20 years has been chief executive of Glanbia Cheese, which is head quartered in Northwich, Cheshire.

Speaking at the event he said: “From an economic point of view we need to stay in the EU – despite market volatility and abolition of quotas. Dairy markets are oversupplied and that will only change if we have a correction. There are so many factors affecting milk prices but even if Russia lift the ban we will not likely see the same demand for European dairy products in Russia,” said Paul Vernon.

Since his time in office, Glanbia Cheese has grown turnover to circa £250m and has become the largest manufacturer of mozzarella cheese in Europe, accounting for over 30 percent of all UK cheese exports and is the second largest cheese manufacturer in the UK.

From its manufacturing facilities in North Wales (Anglesey) and Northern Ireland (Magheralin) the company provides cheese solutions to the leading pizza providers in all the countries of the European Union as well as exporting to a growing number of other counties across the world.

“The demand for dairy will continue to grow worldwide and the milk supply in both the EU and worldwide will continue to grow. What we must recognise is that world pricing will be driven by demand versus supply balance and will exhibit ongoing volatility. The USA, New Zealand, EU and UK milk prices will be driven by the global supply chain and producer margin will become the new “quota”,” said Paul Vernon.

“Sustainability of supply aligned with cost competiveness will see milk production migrate to the more efficient , regions, producers and processors and tools to manage volatility for the entire supply chain need to (will) emerge,” he added.

The company processes circa 1.8 million litres of milk per day, supplied by its contracted farmers in both Wales and Northern Ireland. It employs 350 staff and is the major local employer in the rural areas where its manufacturing facilities are located.

In addition to his role in Glanbia Cheese, Mr Vernon is a member of the group management committee of Glanbia Plc. He is also chairman of Dairy UK (NI), the trade association that represent the interests of both milk producers and processors, and is vice chairman of the main Dairy UK Board.

“The FUW was delighted to welcome a speaker of such quality to address our dinner on the eve of the Welsh Dairy Show function,” said FUW Carmarthen executive officer David Waters.
“The dairy sector is facing immense challenges at present, with falling prices forcing many farmers to re-evaluate their businesses and having to decide whether to stay in milk production or not.

“Mr Vernon helped to give farmers an insight into the way the dairy industry is likely to develop in the next few years and we thank him for being part of an informative day.”

The rapidly approaching payment window for the Single farm payment, poor farmgate prices and serious cashflow issues - with rumours about a possible legal challenge that may further delay payments – has prompted the Farmers’ Union of Wales to organise a series of free farm surgeries at this year’s Royal Welsh Winter Fair (November 30 to December 1).

Joining forces with agricultural solicitors, Agri-Advisor, Davis Meade Property Consultants and Land Agents and LHP accountants, auditors and business advisors, the FUW is offering members a free 40 minute slot with each of the advisors to discuss their business matters.

“The amount paid to farmers is already down by about one-quarter due to the reduced budget, the 15% pillar transfer and the exchange rate, and we have every sympathy with those who will see further falls under the new payment model,” said FUW president Glyn Roberts.

“So in order to help our members - we invite them to book a free appointment for our Royal Welsh Winter Fair farm surgeries. I would urge anybody who’s worried about the farm business to book a slot to talk to the experts. These will be held between 10am to 4pm at our pavilion alongside the main ring on the Builth Wells RWAS showground, ” added Glyn Roberts.

Agri Advisor offers a range of legal and advisory services dedicated to providing specialist advice to farmers, landowners and rural people.

“As expert Agricultural Solicitors we are able to offer specific advice to farmers and landowners directly relevant to the issues faced by their businesses and we look forward to discussing matters of concern to FUW members at this year’s Royal Welsh Winter Fair,” said Agri-Advisor’s Dr Nerys Llewelyn Jones.

Agri Advisor Solicitors was established in 2011, by Dr Nerys Llewelyn Jones on her home farm, Henllan, Pumsaint.

DMPC, who will also be offering free advice to members, are one of the leading firms of land agents, chartered surveyors and valuers in the country dealing with agricultural dispute resolution ranging from landlord and tenant advice to compulsory purchase negotiations.

Carmarthen and Haverfordwest based accountants, auditors and chartered tax specialists LHP, have been working with the business community in South and West Wales for nearly 80 years.

“We describe ourselves as an accountancy practice, with a ‘personal business touch’ and pride ourselves on excellent local knowledge and deal with the smallest ‘sub vat’ lifestyle businesses to multi million pound turnover concerns. I hope that our expertise will prove to be a valuable service to FUW members when they come to join us for the Farm Surgeries,” said LHP director Eirian Humphreys.

[caption id="attachment_5830" align="aligncenter" width="589"] (L-R) John Owen Troedrhiwlasgrug, Plaid Cymru Leader Leanne Wood AM, Shadow Agriculture Minister Llyr Gruffydd AM and President of FUW Glyn Roberts. [/caption]
President of the Farmers’ Union of Wales Glyn Roberts welcomed Leanne Wood AM, leader of Plaid Cymru, and the Shadow Agriculture Minister Ll?r Gruffydd AM, to a farm visit at Troedrhiwlasgrug near the Glanyrafon industrial estate in Aberystwyth on Saturday October 24 during the Plaid Cymru annual conference.

Troedrhiwlasgrug has been farmed by Mr and Mrs John and Beryl Owen since 1982. The 1000 acre beef and sheep farm includes the striking Dinas mountain in Ponterwyd in which over 400 breeding ewes and 500 lambs graze during the summer months. They also have 15 beef sucklers. The farm has also immersed itself in the Welsh Government agri environment scheme ‘Glastir’ since its launch in 2011, and has since progressed to the ‘Glastir Advance’ scheme.

Since elected as president Glyn Roberts has repeatedly expressed his aim of bridging the gap between town and county as a means of strengthening the agricultural industry in Wales.

FUW president Glyn Roberts said; “The industry has seen and is continuing to see massive price fluctuations which threaten the livelihood of farming families.
“Who and where better to demonstrate my priority as a president than for me, a farmer from Ysbyty Ifan, to show the Rhondda-born Plaid Cymru leader, Leanne Wood around Mr and Mrs Owen’s farm which sits in the middle of an industrial estate. I’m passionate about looking towards a sustainable and stable future for Welsh agriculture. I believe the answer lies within Wales and the first step is to unite the people of Wales to back Welsh farming.”

Whilst walking through the farmyard overlooking the busy industrial estate, John Owen talked of his frustration with the continuing poor lamb prices. He and Leanne Wood discussed the need to promote this high quality product to Welsh consumers.

Leanne Wood said; “The agricultural sector is going through a particularly difficult period at the moment. Poor red meat and milk prices are making it difficult for many farmers to make ends meet.

“I believe Welsh farmers have the support of consumers, however this support is not shown in farm-gate prices.”

Ends

Flintshire members of the Farmers’ Union of Wales discussed the way forward for the agricultural industry at their annual general meeting on Friday, October 16.

Held at Caerwys Town Hall, a good turnout of members provided speakers with plenty of challenging questions.

“Our first guest speaker was Gwyn Rowlands from Cadwyn Clwyd who gave a very informative presentation on the new RDP 2014 -2020 programme and how the local action groups will assist in benefitting the local rural economy,” said FUW Denbigh and Flint county executive officer Mari Dafydd Jones.

“Mark Isherwood AM Welsh Conservative Member for North Wales, our second guest speaker, then addressed many rural issues including housing issues and the single farm payment. I thank both of our speakers on behalf of the Flintshire membership for their informative contributions.”

The evening was chaired by Flinthshire county chairman Tim Faire, who provided members with his annual report, which highlighted some of the most important events over the past 12 months within the county.

Members heard about the contributions made to the Hybu Cig Cymru Roadshow by the Flintshire branch and the Denbigh and Flint Show where the county put the spotlight on Welsh milk and lamb by hosting a competition on who can drink a pint of milk and eat a Welsh lamb burger the fastest.

“An interesting and informative evening was capped off with some light refreshments provided by the Flintshire ladies committee, whom we thank for their contributions,” added Ms Jones.

[caption id="attachment_5821" align="aligncenter" width="1024"] (L-R) Monmouthshire MP David TC Davies, FUW senior policy officer Dr Hazel Wright, FUW vice president Brian Walters, Rhys Parry, FUW president Glyn Roberts and FUW Gwent county executive officer Glyn Davies.[/caption]

Cross border differences in bTB cattle control measures and concerns surrounding the proposed provision of open access farm-level Welsh bovine TB data next year were some of the issues highlighted to Monmouthshire MP David TC Davies at a recent farm visit.

FUW senior officials met Mr Davies at FUW members Rhys and Judith Parry’s farm at Penterry Farm, St Arvans near Chepstow, to discuss several aspects of TB policy in Wales in order to identify areas of concern and potential future strategies.

The couple farm the 400 acre of organic beef just a mile from the English border and supply Waitrose with 200  fat cattle a year, with replacement store cattle being purchased between July and November.

“A TB breakdown in July prevented us from buying in replacements until the first week of October. This has meant that we missed a number of sales and will result in us being around 100 cattle short for the coming 12 months.  The impact on cash flow for the business is therefore enormous, and it will take years to recover the position,” explained Rhys Parry.

“TB has restricted the market for our cattle, and this has led to a loss of up to £300.00 per head compared to what we would normally expect,” added Mr Parry.

FUW senior policy officer Dr Hazel Wright  said: “The recent TB Order consultation issued by the Welsh Government takes this issue further by proposing to reduce the compensation provided to cattle that have legally, with a licence, been moved onto a TB restricted holding if such cattle subsequently go down with TB.  This could place members in an untenable position, due to issues such as breaches of their milk contract, and places them on a no-win situation.”

“The FUW is currently seeking members’ views on this consultation and we will reply on behalf of our membership in due course,” added Dr Wright.

[caption id="attachment_5812" align="aligncenter" width="1024"] Talking cheese are Caws Cenarth’s Carwyn Adams (r) and FUW’s milk and dairy produce committee chairman Rhydian Owen.[/caption]

[caption id="attachment_5813" align="aligncenter" width="1024"] Meeting cheese entrepreneur Thelma Adams are FUW vice president Eifion Huws (l) and FUW president Glyn Roberts (r )[/caption]

[caption id="attachment_5814" align="aligncenter" width="1024"] In the cheese shop - Caws Cenarth founder Thelma Adams with son Carwyn and FUW’s milk and dairy produce committee chairman Rhydian Owen and FUW president Glyn Roberts.[/caption]

The Carmarthenshire branch of the Farmers’ Union of Wales hosted a visit to Caws Cenarth – a family run business in the valley of the river Cych and the oldest established producer of Welsh Farmhouse Caerffili – to explore how the business once again is turning difficult times into opportunity.

Caws Cenarth was started by Gwynfor and Thelma Adams in 1987 in response to milk quotas. Here, on their farm, Glyneithinog, they drew on a six generation tradition of cheese making and quickly established a reputation for its creamy, fresh-flavoured Caerffili.

Thelma soon became a leading light in the renaissance of Welsh artisan cheese making. These days, Gwynfor and Thelma take a back seat, allowing son Carwyn to run the business and indulge his passion for creating new cheeses.

Speaking about the business and milk quotas, Carwyn Adams said: “I took the business over in 2005 and we now employ 17 people, cheese is a passion for us and I like exploring new flavours and developing new ideas and that’s one of the key areas where we manage to draw the business in.

“Just recently milk quotas have been removed and now is probably a more appropriate time to have milk quotas in place than ever, especially if we look at how milk prices have dropped.

“As a cheese producer and milk purchaser, we need to stabilise prices for our customers. We are not looking for cheaper milk or more expensive milk  - what we are looking for is proper value for the milk that we buy and a consistent price.”

The beginning of the year saw dairy producers in Wales waking up to the abolition of the European quota system that has operated to limit EU milk production for 30 years. While Britain remained under quota, the potential addition of more production to the EU milk glut had led the FUW to repeatedly express concern about further increases in price volatility in an already saturated marketplace.

“If milk quotas were still in place it might actually help control supply and demand dynamics, as opposed to just flooding the market. We do need to have another look at the role that milk quotas – or some other similar market management tool - could play,” added Mr Adams.

FUW milk and dairy produce committee chairman Rhydian Owen, who also attended the visit, said: “ Coming to see this small family business here in rural Wales was a fantastic opportunity. It’s an inspiration to see how they are progressing and looking to the future after quotas have been abolished.

“Diversification, just like Carwyn is doing here at Caws Cenarth, is one option for farmers to keep in business; now that the marketplace has become more volatile.

“It will be interesting to see what the European Union can do in the future by perhaps introducing a monitoring systems but bringing back quotas now would be very difficult and is unlikely.

“But stabilising the peaks and troughs of a volatile market is definitely something that the EU must look at, so that businesses like Caws Cenarth can continue to prosper. The union has long argued that it is imperative that processors work to prevent the type of boom and bust price volatility which followed quota abolition.

“Indeed, it is essential that transparency and fairness in the dairy supply chain is improved in order to allow producers and processors to be well placed to  maximise those mainstream and added-value opportunities that are set to arise in the export market following future growth in the demand for dairy products.”

Speaking about the future of the business, Carwyn added that: “We currently produce the plain Caerffili, and other varieties such as Garlic and Herb Caerffili and Smoked Caerffili and have developed the Brie-like Perl Wen, a creamy blue, Perl Las, and Golden Cenarth, a washed-rind cheese with a powerful flower , which won the Supreme Champion accolade at the British Cheese Awards 2010.

“The future for Caws Cenarth is to look at expanding our product range and exploring other markets. I am not sure if we are going to get them available for this year but possibly for next year.

“We want to focus on a new cream cheese, and are looking at going into more of a catering aspect of it and we are definitely looking at the ethnic markets and producing cheeses that are sought after in that customer base.                                                                                                               

“We will also be looking at using milk from different sources such as goats and sheep, which is an area that we would probably relish in because of the handling of different milk and expanding into another niche market could work very well for us.”