More encouragement needed for farmers to produce

The future of the Welsh red meat industry is crucial to the long term profitability of almost all farming businesses in Wales, according to NFU Cymru in its comments to the Welsh Assembly Government on its strategic action plan for the Welsh red meat industry.

The Union continued, "Beef and sheep producers are directly affected by the profitability of the red meat industry; dairy farmers in Wales will also be supplying either directly or indirectly animals into the red meat supply chain and Welsh arable farmers are reliant on a profitable livestock industry to purchase a significant proportion of their grain / by-products.

"The red meat industry is also a significant employer in Wales, on farms, in abattoirs, processing facilities, in retail outlets and the hospitality sector. This has a significant impact not just on the rural economy of Wales but also the wider Welsh economy.

Ed Rees, NFU Cymru Livestock Board Chairman, said, "Unfortunately, as a result of retail power, disease, currency fluctuations, high input costs, imports, bureaucracy and more recently the global economic crisis, the past 12 years or so have been very difficult times for the industry in Wales. These problems have put significant financial pressures on the red meat industry in Wales which has resulted in a contraction in sheep and cattle numbers and rationalisation in the slaughtering and processing industries in Wales."

There is a general lack of confidence in the industry highlighted by the significant fall of 7% in the Welsh breeding ewe flock and 2% in the suckler cow herd in the 12 months to July 2008.

Ed Rees said, "The continual loss of breeding ewe and suckler cow numbers will have major repercussions for the entire supply chain. There needs to be a quite dramatic change in confidence in the red meat sector to reverse this declining trend in production capacity.

"NFU Cymru feels more encouragement needs to be given to farmers to continue to produce and believes that the Welsh Assembly Government can play its part by tackling the burden and cost of red tape and bureaucracy on farms. This plan must concentrate on adding value, increasing efficiencies and innovation to help make our red meat industry competitive at home and abroad.

"The strategic plan must also investigate what the Welsh Assembly Government can do to reduce the confusion surrounding country of origin food labelling and allow consumers to make an informed choice about the food they buy.

"Marketing and Promotion is also crucial to the long term growth of the red meat sector in Wales, PGI status for our beef and lamb has played an important role in helping develop and build export markets, but livestock farmers have yet to see this status deliver increased returns to farmgate prices in Wales.

"NFU Cymru agrees with the strategic plan’s objective to improve supply chain linkages between all partners in the Welsh red meat supply chain and looks forward to working to help achieve transparency and profit for all links of the chain."

Mr Rees concluded, "We look forward to working with the Welsh Assembly Government and Hybu Cig Cymru to deliver a profitable, efficient, sustainable and innovative Welsh red meat industry which responds competitively to ever changing market trends and hence benefits the people of Wales."