New research which estimates that around £800 million could be lost from the southwest of England as a result of Defra’s reforms of English agricultural support confirm concerns raised by the Farmers’ Union of Wales (FUW) in response to government consultations in both England and Wales.

The ‘Assessing the impact of Agricultural Transition in Cornwall & the Isles of Scilly, Devon, Dorset and Somerset’ final report by the University of Gloucester’s Countryside and Community Research Institute (CCRI), which was commissioned by the Great South West partnership, looked at the impacts and opportunities of the current English ‘Agricultural Transition’ policy on farmers, land managers and the wider rural community.

The research found that over the English transition period a total of £884 million in direct agricultural support will be lost by farmers in the area by the end of 2027, with replacement scheme funding making up only a fraction of this loss even in best case scenarios.

The Farmers’ Union of Wales’ Milk and Dairy Produce Committee has agreed unanimously that farmgate milk prices need to rise significantly in order to make up for massive increases in input costs caused by increases in feed, fuel, fertiliser and energy costs - many of which are linked to the war in Ukraine.

The Union recently wrote to the major retailers urging them to ensure that rising input costs do not threaten the long term viability of food producers in Wales and the UK, and that farmers are paid a fair price for their produce in light of developing circumstances.

Increases in UK food prices are inevitable, and while retailers do have a part to play, it is essential that this is reflected throughout the supply chain and reaches the farm gate.

Russia’s invasion of Ukraine has had an impact on agricultural production and food supply throughout the EU including rising costs and availability of inputs.

To cope with this crisis, the European Commission has asked member states to adapt their Common Agricultural Policy national strategic plans taking into consideration the ongoing effects of the war.

Agriculture Commissioner Janusz Wojciechowski has also stated that the EU must increase food production in light of the war in the Ukraine.

Sheepmeat exports looking positive for 2022

Data on lamb exports are showing positive signs of recovery following the pandemic and the impacts of Brexit. AHDB analysis shows that following a small recovery in January with sheepmeat exports up 13% on 2021 at over 4,000 tonnes, February exports were 37% higher than 2021 at 6,300 tonnes reaching levels not seen since before Brexit and the pandemic.

A total of 95,050 tonnes were exported in 2019 which dropped to 88,200 tonnes in 2020. Alongside the Covid-19 pandemic, new trading arrangements and trade friction following the end of the Brexit transition period affected exports further in 2021 with exports totaling 70,000 tonnes.