The Farmers’ Union of Wales (FUW) has emphasised the importance of appointing a dedicated minister with responsibilities for farming and rural affairs.

“Agriculture and rural affairs are key to our economy, and central to addressing and dealing with the major challenges of our generation,” said FUW President Glyn Roberts.

“With issues such as climate change and water management dominating agendas such as those listed in the Well-being of Future Generations Act, we need a dedicated minister to fight for the interests of our rural communities – communities for which agriculture is a cornerstone,” he added.

Mr Roberts said the call tied in with the FUW’s vision of a Rural Powerhouse for Wales which recognises the central role agriculture and rural areas must play in addressing the challenges of the future, while ensuring the focus does not just fall on the M4 and A55 corridors.

“This can only be done by having a full minister who sits on the Welsh Government cabinet and has responsibilities for agriculture and rural affairs.

“The FUW looks forward to working closely with the incoming Government in order to ensure priorities are met for rural Wales and Wales as a whole,” he added.

Under the previous Welsh administration the agricultural portfolio was moved between ministers and deputy ministers a number of times following Welsh cabinet reshuffles.

[caption id="attachment_6348" align="alignleft" width="263"] FUW Milk and Dairy Produce Committee Chairman Rhydian Owen[/caption]

The introduction of the Dairy Code of Practise in 2012 has done little to positively affect the farm gate prices received by producers and is largely ineffectual in the midst of market surpluses and a lack of alternative options.

This was the conclusion of the recently published Farmers’ Union of Wales report on the dairy sector.

In addition the report highlighted that the Code can do nothing to better the prospects of producers who have been served notice.

Therefore the Union continues to reiterate that smaller producers and those in remote areas are being left vulnerable during periods of oversupply.

“The industry could see even more falls in producer numbers as processors ‘cherry-pick’ producers in a bid to reduce operational costs,” warns FUW Milk and Dairy Produce Committee Chairman Rhydian Owen.

For producers wishing to take up the option, the FUW has been a long-standing supporter of the inclusion of market-related pricing formulas within dairy contracts.

“Supporters of the formula believe it could form the foundation for prices which, while continuing to vary between contracts, nevertheless represent the true value of milk.

“This would reflect a supply and demand dynamic that UK milk prices have failed to recognise over the last decade,” added Mr Owen.

Other types of contracts, such a futures, may be of benefit to some producers; although this will depend on the individual business and the degree to which some or all of the milk is included, according to the FUW dairy report.

Mr Owen further stated that whilst the industry needs different types of contracts to cope with embedded marketplace volatility, there must also be a concurrent effort to increase transparency and proper policing in the UK supply chain.

Contracts which include mechanisms such as A and B pricing must also work for the producer when demand outstrips supply and should not be used primarily to reduce incomes in periods of oversupply.

“Proper policing should help to ensure that contracts remain fair and do not exploit primary producers. The FUW has repeatedly called for an expansion of the Groceries Adjudicator’s power to cover all dairy producers and not just the small minority on retailer aligned contracts.

“At present, retailer aligned contracts only account for about four percent of the milk produced in Wales and, as such, the majority of dairy producers are not covered by the remit of the Adjudicator.

“We would like to see a system whereby the dairy code is properly policed so that we can tell straightaway if the purchasers are cherry-picking and if they are not playing fair,” added Mr Owen.

[caption id="attachment_6345" align="alignleft" width="143"] FUW Senior Policy Officer Dr Hazel Wright launches the Union's dairy report[/caption]

A report on the current state of the Welsh dairy sector has been launched by the Farmers’ Union of Wales in order to identify the main issues affecting the sector and those mechanisms which might mitigate some current problems.

The FUW’s Milk and Dairy Produce Committee Chairman, Rhydian Owen, said: “ The Welsh dairy industry continues to reel under months of continuing low prices and poor profitability and almost half of dairy farmers in Britain have stated an intention to quit the sector.

“The FUW is extremely concerned that any sign of a price recovery may still be some way into the future due to a continuing global supply and demand imbalance.

“We have now sent a synopsis of the main issues contributing to the current dairy sector crisis to local MPs, MEPs and will be distributing this information further to the newly elected Welsh Assembly members.”

The report highlights that a year after milk quotas have been abolished, and in the absence of any observable or predicted changes to current global supply and demand dynamics, it is imperative that the milk market is managed in a manner which stabilises prices.

“The market has to be managed in a way that ensures a fair standard of living, protects producers from the effects of unfair practises and strengthens their position in the supply chain.

“Furthermore, the on-going Russian trade embargo, coupled with reduced demand in China and a weak economic environment will likely delay price rises beyond any potential downturn in production,” added Mr Owen.

The report further concludes that measures which enhance the sustainability and viability of the Welsh dairy sector will therefore be essential to ensure future competitiveness and innovation.

FUW Senior Policy Officer Dr Hazel Wright said: “The FUW Policy Department continues to work with the Union’s Milk and Dairy Produce Committee to fight for the prosperity of Welsh dairy farmers.

”In order to preserve the future of Welsh and British dairy farmers, it will be crucial to ensure that resilience does not merely focus on producing milk at lower prices, but instead recognises the need to intervene in a way which mitigates the wealth of issues which remain out of the control of the primary producer.”

FUW report into the post-quota dairy sector April 2016

[caption id="attachment_6341" align="alignleft" width="300"] US Counselor for Agricultural Affairs Stan Phillips received a copy of "A Family Affair” from FUW President Glyn Roberts[/caption]

Farmers’ Union of Wales officials recently met with the United States Department of Agriculture to discuss the future of the Welsh agricultural industry.

Welcoming the United States Department of Agriculture representatives Stan Phillips, Counselor for Agricultural Affairs and Steve Knight, Agricultural Specialist, were FUW President Glyn Roberts, the Union’s Managing Director Alan Davies and Senior Policy Officer Hazel Wright.

“We welcomed the opportunity to provide an insight into Wales’ current political, economic and social situation and share information on the Welsh farming sectors, its geography and the current incomes and exports arrangements with the US Department of Agriculture,” said Glyn Roberts following the meeting.

“Sharing experiences and information with our US colleagues is vital in the process of establishing an export market for our Welsh Lamb and Beef,” he added.

The FUW was keen to use the opportunity to promote the high quality of Welsh agricultural produce and the high environmental and welfare standards that producers adhere to.

[caption id="attachment_6342" align="alignright" width="300"] US Agricultural Specialist Steve Knight, US Counselor for Agricultural Affairs Stan Phillips, FUW Senior Policy Officer Hazel Wright and FUW President Glyn Roberts[/caption]

“We highlighted the strong export relationship we have with the European market today by explaining that the market for Welsh red meat in Europe is worth close to £200 million a year and accounts for 90% of Welsh agricultural exports.

“In 2014, export figures show that approximately 35% of sheep meat produced in Wales was exported to the European Union with 93% of Welsh lamb exports, 93% of Welsh beef exports and 98% of dairy exports destined for EU countries,” said Mr Roberts .

Given the ongoing Transatlantic Trade Investment Partnership developments between the EU and the US, the FUW was also keen to discuss the use of equivalencies in regulation, the protection of PGI Welsh lamb and the move towards better and more accurate food labelling.

“The FUW was pleased to hear that significant progress has been made on Welsh beef and lambs exports into the US and we will be interested to see how this market develops in the future”, added Mr Roberts.

[caption id="attachment_6336" align="alignleft" width="300"] Solar Cells on the housing sheds at Pantyderi[/caption]

A beef and sheep farming family from Pembrokeshire have highlighted the benefits of solar power to their business but stressed the importance of improvement to infrastructure to further develop the sector.

Wyn and Glenda Jones, of Pantyderi and Trefach farms at Blaenffos, together with their son Eurig rear beef and sheep plus arable acreage for home consumption on both holdings which run to 1,000 acres in total.

Across the two businesses the family farm 70 suckler cows, 400 store cattle, and 2,000 breeding ewes. Since 1985, the family also offer self-catering cottages all year round.

In 2012 the Jones family decided to diversify into renewable energy and installed 104 kw of solar panels.

There are now two installations of 50 kw at Pantyderi and a 4 kw installation at Trefach for domestic use.

Renewable energy schemes produce more than 20% of the UK’s electricity, and EU targets mean that this is likely to increase to 30% by 2020.

The first 50 kw solar installation was put up in 2012 at Pantyderi and was followed by an additional 50 kw the following year.

The opportunity to diversify into renewable energy came as three-phase electricity was already on the farm with access to the main line. 

[caption id="attachment_6337" align="alignright" width="169"] Wyn and Eurig checking on the morning's energy production[/caption]

And when Western Power decided to upgrade the existing transformer on the farm in 2012, which had been there since 1945, it was too good a chance to miss.

Wyn paid an extra £3000 towards putting a bigger transformer up, which then paved the way for the second installation in 2013. The payback time for the initial investment is 6 to 7 years and the installation is index linked for 20 years.

The Feed-in Tariff (FiT), from which the business benefits, is designed to support small scale renewable installations up to 5MW.

Through FiTs, generators like the Jones family, are paid a tariff for every unit of electricity they produce. Any electricity not used on site can then be sold back into the Grid.

“We make a saving of about £5000 a year between the two units, with each of them generating approximately £7000 worth of electricity a year.

“The surplus energy we don’t use on the farm is exported back to the national grid. We receive about 14.5 pence for generating each unit and receive 4.5 pence per unit for the surplus we feed back into the grid,” explains Wyn.

“This means that we are totally self-sufficient in our electric use on the farm and all of this is produced by the sun. Even though we don’t get as much sunshine here as some other countries, it was well worth the investment,” he added.

However, when wanting to expand the current installation of solar cells, as there was plenty of room on the farm buildings, the family hit a brick wall.

Following some enquiries they were told that there was no more capacity in the grid as the infrastructure was not there to support any extra energy produced.

“We were really keen to expand our solar cell installation but because the infrastructure could not cope with any more energy being fed into the grid it was impossible. The country has a commitment to reduce its carbon footprint and its reliance on fossil fuels, so it was very disappointing for us.

“Renewable energy production is also another way for us farmers to increase our income stream and diversify our businesses.

“We can’t just rely on the price we get paid for our produce anymore, so anything we can do to support ourselves needs to be supported by government and as far as renewables are concerned also the energy companies,” added Wyn.

He added that many more farm businesses would be able to make an investment into renewable energy as a viable form of extra income that was index linked, if only the right support was out there for them.

The Union fully supports the development of appropriate on-farm renewable energy sources, and believes Wales has only scratched the surface in terms of the contribution Welsh farms can make to green energy production.

“Despite Wales’ being perfectly suited for some forms of renewable energy generation,the percentage of electricity generated in Wales from renewable stands at just 10 percent – 5 percent lower than the UK average, and the lowest of all the UK devolved regions,” said FUW Land Use Policy Officer Bernard Griffiths.

[caption id="attachment_6338" align="alignleft" width="300"] Father and Son team - Eurig (left) and Wyn (right)[/caption]

“The decision in 2015 by the UK Government’s Department for Energy and Climate Change, which has responsibility for major national energy projects, to suddenly and drastically reduce support for renewables not only compromises our ability to help mitigate climate change, but has also led directly to farmers and others losing significant sums already invested in unfinished projects,” added Mr Griffiths.

In light of this the FUW called on Welsh Government to carefully consider the outcome of the Welsh Assembly’s Environment and Sustainability Committee’s Smarter Energy Future for Wales inquiry and to seek alternative and innovative ways in which funding can be provided in order to develop on-farm energy production.

In addition, there has to be a stronger commitment from energy companies to invest in improving infrastructure to allow those farms not currently connected to also access the renewable energy market.

The Union further asks of the Welsh Government to identify those barriers to on-farm energy production which fall within its remit and seek to reduce bureaucratic burdens which prevent or add to the financial and time burdens which prevent developments.

Mr Griffiths added that it is vital for the Welsh Government to work with Ofgem and the UK Government to ensure the costs of connection to the National Grid by electricity companies are fair and proportionate and that it encourages and facilitates the use of wood and other carbon-neutral sources of energy while ensuring food production is not compromised.

[caption id="attachment_6303" align="alignleft" width="300"] FUW Senior Policy Officer Dr Hazel Wright[/caption]

Following a recent Freedom of Information request made by the Farmers’ Union of Wales in response to Public Health England’s ‘Eatwell Plate’, the Union remains baffled by the dietary guidelines published.

The request was made by the FUW as the guide recommended that consumers reduce their daily amount of dairy produce intake to just 8 percent.

FUW Senior Policy Officer Dr Hazel Wright said: “Some of the evidence provided under the Freedom of Information (FOI) Act related to reports conducted by the Scientific Advisory Committee on Nutrition (SACN) on trans fatty acids, iron, health, energy and nutrition.

“However, much of the FOI concerned the modelling work which was undertaken to establish the Eatwell Plate in a way which would give ease of use to the consumer.

“This was of much less concern to the FUW than the methods used to scientifically justify the prominence of each food group.”

Unfortunately, whilst the FOI demonstrates the inconclusive nature of some of the detrimental claims about dairy products, studies which demonstrate the positive effects of dairy on health factors such as bone density and blood pressure gain much less prominence.

Moreover, the FOI did not provide any suitable clarity on the methodology used to reach the conclusion that dairy should contribute just 8 percent daily intake.

“The FUW remains bitterly disappointed by the original healthy eating guide issued by Public Health England and the information provided under the FOI has done little to mitigate existing concerns about the basis for this work,” added Dr Wright.

The Union remains unconvinced by the changes made to the Eatwell Plate and is seriously disappointed by the information provided under the FOI.

Dr Wright further said that it is essential that proper and rigorous scientific evaluation of dairy dietary research has been conducted in order to ensure that consumers understand the value of dairy products in the diet.

The FUW would therefore welcome further engagement in this process in the future in order to ensure that any negative presumptions about dairy produce do not unduly influence the final decision making process of consumers.