27 February 2015 | Online since 2003



29 August 2012|Cattle,Finance,News,Pigs,Sheep

Price volatility is not going away, livestock farmers warned


Livestock and dairy farmers have been warned to keep a close eye on the costs of production as input price volatility is 'here for the foreseeable future', the warning comes as Livestock 2012 is due to begin in September.

Speaking ahead of the 2012 Livestock Event at Birmingham’s NEC, Wilkinson said that whilst market forces were keeping beef prices attractive for farmers, input costs were likely to rise due to currency movements and increasing grain-based livestock feed prices caused by the US and Russian droughts. This is in stark contrast to the very wet and cool summer which the UK is still enduring.

In the UK, feed wheat was being priced up to £230 per tonne in July, compared to £182 per tonne the year previously. Meanwhile, currency fluctuations are diminishing returns for exported UK beef to Europe.

“Generally stagnant or declining EU cattle numbers, reduced supplies from South America and a very significant increase in EU beef exports have created a strong demand for UK beef within the UK" Wilkinson said.

"These market dynamics are keeping beef prices high which is very pleasing for farmers. That said, input costs are rising and livestock farmers must keep an eye on their own specific costs to ensure they don’t significantly erode existing margins.

“The main concerns for beef and sheep producers are primarily rising input costs, mainly feed, fertiliser and bedding straw. Concerns over CAP Reform have been placed on the back burner for the time being. While our whole farm budgets suggest some narrowing of the deficit between cost of production and sale prices, the vast majority of farmers continue to rely heavily on support payments for any level of profitability.”

Wilkinson added that communication needs to improve throughout the food chain to ensure all parties understand the needs of others. Farmers, processors and food retailers need to adopt an open dialogue to help avoid issues such as the recent blockades of milk distribution depots by farmers angry at the cut in milk prices.

“We need a proper functioning market across all sectors of farming and in order to achieve that we need better lines of communication. The recent milk situation demonstrated that the communication line throughout the chain needs improving, which leads to misunderstanding" he said.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


26 February 2015
Academic Administrator - Kingston Maurward College
Academic Administrator to Section Lead for Agriculture, Countryside & Food. Your priority will be to support the Section ...

6 February 2015
Helpdesk Operator
We are offering an excellent opportunity for highly enthusiastic and motivated person to join our maintenance helpdesk team t...

19 February 2015
Site Operative
An opportunity has arisen to join the team, based at Diss. The successful candidate will be responsible for assisting in the ...

17 February 2015
Holiday Cottage Cleaner
To clean and service holiday cottages on a Friday and Saturday 10.00am until 3.00pm. Must be able to make beds clean bathroom...

26 February 2015
Trials Placement
Frontier is the UK's leading crop inputs and grain marketing business, recognised for its close customer relationships with f...




Top stories you may have missed
2 February 2015 | Arable
Is EU membership damaging UK farming?

Is EU membership damaging UK farming?

Membership of the EU is damaging the British farming industry, according to...


29 January 2015 | Machinery and Equipment
Drones 'rapidly changing' agriculture

Drones 'rapidly changing' agriculture

BASIS has launched an accreditation for pilots of Unmanned Aerial Systems (...


23 January 2015 | Arable
UK wheat yields have potential to double

UK wheat yields have potential to double

UK wheat yields have theoretical potential to more than double over the nex...


23 January 2015 | Machinery and Equipment
Crowds flock to LAMMA 2015

Crowds flock to LAMMA 2015

Britain’s farmers flocked to Peterborough for the first day of LAMMA’15 to ...


22 January 2015 | Cattle
Don't blame supermarkets for milk crisis...

Don't blame supermarkets for milk crisis...

The crisis in the dairy industry is not the fault of supermarkets, accordin...


16 January 2015 | CLA
Families affected by HS2 face 'major wor...

Families affected by HS2 face 'major wor...

Transport Minister Baroness Kramer visited three rural businesses in Cheshi...


16 January 2015 | Machinery and Equipment
John Deere unveil new 6R tractor range

John Deere unveil new 6R tractor range

Spearheading the John Deere range of mid-size tractors from Mannheim, the n...


14 January 2015 | Animal Health
Monthly TB checks more effective than ba...

Monthly TB checks more effective than ba...

Regular testing for bovine TB could significantly reduce the number of infe...


12 January 2015 | News
Government regulations hampering UK agri...

Government regulations hampering UK agri...

Single-issue policy-making threatens to hamper, not help, the progress of U...


8 January 2015 | Cattle
2015: The year ahead for the beef market

2015: The year ahead for the beef market

2014 has been a “rocky old year” for the beef industry but better prices ar...