Russian ban shows need for domestic grain
The need to maintain productive agriculture at home has been emphasised by NFU Cymru at this year’s Pembrokeshire Show following the recent announcement by Russian Prime Minister Vladimir Putin to place a temporary export ban on grain.
Perkin Evans, Chairman of NFU Cymru’s Combinable Crops and Horticulture working group and an arable farmer from Solva said, "The announcement in Russia comes after the worst drought in more than a hundred years which has devastated crops both there and in the Ukraine, and heavy rain is being blamed for wiping out the wheat crop in Canada. As a result wheat prices are up by 70 per cent on prices in June this year, rising 11 per cent on Thursday, 5 August alone.
"It’s impossible to speculate on the impact this dramatic market movement will have. But what this does serve to show is how important it is to maintain and develop our own productive capacity in grain, faced with unpredictable supply from overseas."
Looking at the bigger picture, NFU Cymru Deputy President, Stephen James, a dairy farmer from Pembrokeshire, speaking at the show, said, "As food producers within the EU we have a reliable record on our capacity to produce and we must remember that stable production in the EU is relevant not just to our own but also to global food security.
"These recent events should be taken into consideration by the European Commission as it prepares for reform of the Common Agricultural Policy post 2013. Recent global events, resulting in extreme market movements, underline the importance of a strong European agricultural policy that has food production and food security both at home and abroad as its core priority."
The hike in wheat prices on world markets while potentially good news for Welsh arable farmers could have a negative impact for milk producers in West Wales as animal feed prices could rise as a result of higher grain prices.
Mike Mcnamara, NFU Cymru Pembrokeshire County Chairman and a local dairy farmer said, "Feed costs on average represent around 25% of total milk production costs therefore any increase in concentrate prices as a result of the poor global grain harvest will undoubtedly result in increased costs for dairy farmers in West Wales.
"To ensure the sustainability of milk production in one of the most important milk fields in the UK it is essential that any cost increase is passed up the supply chain, unless this happens we will continue to see dairy farmers deciding to call it a day. Our milk buyers must pay a price that truly reflects the cost of producing milk to the highest health, welfare and environmental standards rather than simply paying what they feel they can get away with which appears very much to be their current attitude."
