Wales-Beef Farmers future looks good.

WALES-Farmers have a spring in their step, despite costs, increasing efficiency and selling what the market requires will help Welsh beef farmers to survive the credit crunch according to an industry expert.

Robert Forster, the former chief executive of the National Beef Association, told a group of farmers at a meeting organised by Hybu Cig Cymru and Farming Connect in Crymych, that many factors were in their favour at the moment and he is optimistic about the future of beef production.

Mr Forster said: "The reduction of dairy cross beef calves born in 2007, as well as a reduction in the number of breeding cows in the UK and Europe, will lead to the price of slaughter cattle becoming dearer."

He also said that the demand for beef around the world was increasing because of a number of reasons, including: ∑ Developing countries looking for more protein in their diets ∑ UK consumption levels have risen back above the pre-BSE levels of 1996 ∑ The amount of exports from South America being affected by the rise in the price of Brazilian Beef and a curb in exports by the Argentinean Government.

But he said that although farmers are likely to see less competition from abroad, they will have to adapt to cope with the change in the Single Farm Payments in 2013.

"Only by becoming more technical and making your business more efficient will you be able to survive without the Single Farm Payment," he said.

"Overheads have to be adjusted, cows have to produce more and cows have to cost less."

Mark Needham, HCC’s Technology Transfer Officer said: "By making simple management changes to your systems; such as improving the percentage of reared calves from 85 percent to 94 percent could improve returns in a 100 cow herd by £3,591. Additionally by increasing weaning weights from 285Kg to 315Kg through a tighter calving pattern and good feeding could further improve returns by £3,948 in a 100 cow herd."

Mr Forster added that if farmers could achieve all this by 2013, then family run farms in Wales would be well placed for future CAP developments.