NFU Cymru Presidents New Year message
Ed Bailey, NFU Cymru President, delivers his message for the New Year:
"As I travel around Wales speaking to farmers in my role as NFU Cymru President I am heartened that some confidence is returning to our industry, mainly as a result of higher market prices for our livestock. However, we are also only too aware that with input costs now above previous peaks recorded in 2008, and showing no sign of abating, margins are extremely tight. This was starkly brought home to us recently with the publication of the annual farm business income figures showing a 12% drop in income. This proves that there remains much to do to help safeguard our futures.
"The crisis in the Eurozone is an issue that we must watch closely as the fortunes of Welsh agriculture are intrinsically linked to the Euro. The Eurozone is by far our biggest trading partner and the exchange rate between sterling and euro is the single most important determinant of total farm income.
"CAP Reform and its impact on Welsh farming will continue to dominate our discussions next year with both our members and politicians. The two key issues for us surround the transition from an historic basis of payment to an area based model and the ’greening’ of pillar 1 payments.
"With regards to the move away from the historic approach to the Single Farm Payment scheme we must focus on how this can be done without disrupting the productive capacity of Welsh agriculture. This will require considering various options to see how we can mitigate the redistributive impact of a significant change in CAP policy.
"The greening proposals as they stand will affect the competitiveness and ability of Welsh farmers to respond to the dynamics of the market. Pre-determined figures on the percentage of crops grown on our farms, strict controls on permanent grassland and measures focussed on taking land out of production take us back to the days when Government and not the market place decided how much and what we should produce.
"Frustration and bitter disappointment sum up my thoughts with regards to the Welsh Government’s attitude towards bovine TB in 2011. Cattle farmers have shown their commitment to get on top of this disease by continuing to try to run their businesses under severe restrictions and resultant additional costs. The Welsh Government has badly let us down on this matter in 2011; let us hope that the dithering will stop with an early announcement in 2012 to move forward with a policy that removes disease from both our cattle and wildlife populations and will put bovine TB eradication back on track in Wales.
"NFU Cymru has never disagreed with the basic principles or stated aims of Glastir, but repeated failures to address shortcomings in the detail and delivery mean that the scheme continues to lurch from one crisis to another. The latest saga involves farmers being given limited time to sign detailed contracts, often with key details missing. The one element that has received widespread support from farmers, the ACRES grant, Welsh Government has so far managed to offer only a handful of grants. Both the previous and current Welsh Government appeared to feel the industry was crying wolf over Glastir when it is abundantly clear that our concerns have been vindicated and issues were and remain entirely legitimate.
"One of the success stories of Welsh agriculture in recent years has been the growth of our poultry sector. It has been estimated that the investment in higher welfare systems in Wales has cost in excess of £100m. This makes it all the more disappointing that Government has not been able to adopt stronger measures to protect egg producers from illegal eggs and egg products entering the UK from 1 January.
"We do welcome the increased checks that Government has committed to make and also the support of a number of retailers and food manufacturers to ensure that they do not source egg products produced from hens in conventional cages but this does not go far enough to fully protect Welsh egg producers who have invested so heavily in complying with an EU directive that a number of countries have simply decided to ignore.
"We recently received some good news on Sheep EID, with a delay in the requirement to individually movement record the historic flock for three years. This is a good example of Welsh Government, MEPs and the industry jointly working together to deliver some real tangible results for Welsh farmers. We need to continue to keep the pressure on the Commissioner for further flexibilities and ultimately a full scale review of the regulation.
"The working smarter programme that aims to reduce red tape and bureaucracy in agriculture is, to me, a ’win-win’ scenario for both government and farmers. Avoiding duplication, simplifying regulation and easier form filling is something we can all agree on. I have been impressed by the way Gareth Williams has gone about chairing this programme of work. The ball is now firmly in the court of the Deputy Minister to deliver on this programme.
"Finally with our milk price still languishing in the bottom quarter of the EU milk price league table, let us hope that 2012 will bring some cheer to this depressed sector. We live in expectation that the industry will be able to agree on a voluntary code of practice on milk contracts to help to bring some fairness and clarity to the relationship between milk producer and milk buyer. However, Government must also consider what it can do to facilitate change through the options it has available under the EU Dairy Package proposals and through delivering on an Adjudicator for the Grocery Code of Practice to ensure that all parts of the supply chain have the opportunity to make a profit and re-invest in their businesses.
"Wishing you all a Merry Christmas and a Happy New Year."
