Tag Archives: Brexit

No fair trade here: cream and butter prices rise but farm-gate prices for milk don’t

The Financial Times reports that a reduction in the milk supply, due to a cold spring and dairy farmers leaving, has led to prices of butter and cream rising 18.7% in the year, according to data from the Office for National Statistics. But despite “record prices” for wholesale cream and butter in recent weeks, the National Farmers Union point out farm-gate prices for milk have continued to fail to keep in step.

BBC online reports that Arla’s CEO Peter Tuborgh said producers “put the brakes on” in 2016, in the wake of previous overproduction of milk and consequently lower prices and Michael Oakes, chairman of the National Farmers Union dairy board, added that UK supply had fallen partly because so many farmers “decided enough was enough during that downturn”. Many farmers have often had to sell milk for less than the cost of producing it and so – understandably – the number of UK dairy producers has fallen.

The National Farmers’ Union said the “constant boom-and-bust dairy market cycle” helped “no-one, most of all farmers” and expressed concern about the lack of strong upward movement in the farm-gate milk price.

Milk buyers are worried about milk volumes falling but, the NFU spokesperson added, “Confidence within dairy farming is at an all-time low [due to] mistrust in the market dynamics and suspicion about how milk buyers are treating their supply base, coupled with the lack of direction on the impact of Brexit on the dairy sector.”

Post-Brexit, will the UK government ensure that ‘ordinary’ farmers receive a fairer proportion of the agricultural payments and turn away from the practice of subsidising offshore companies and rich individuals?

And will the Groceries Code Adjudicator, who places great emphasis on scrutinising supermarkets give more time to food producers and address the issue of unjust farmgate prices?

 

 

 

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Taking back control of the agricultural economy

Former Conservative MP Matthew Parris asks, “Is ‘food security’ still an imperative for this 21st-century country long unable to home-source many of the other mainstays of our economic life? Why, post-CAP, should we despoil East Anglia and plunder Treasury coffers for fear of relying on Canadian wheat or West Indian sugar?

We all need to take a view on the texture of the rural Britain we want to sponsor, the size, type and location of the farms we want to support, the agriculture we want to see there.

Hill farming on sloping ground. in places rocky, often marshy and reedy, everywhere wet, exposed and windy, and with poor-quality soil whose agricultural use is only grazing. Nearly half of hill-farmers’ income comes from CAP subsidies. For them it’s the foundation of what still amounts to scraping by: they really are just about managing. Ministers guaranteed during the recent referendum campaign that this bedrock would not be disturbed until 2020. Beyond that there are no promises.

Governments cannot strike out in a new direction as suddenly as could an individual like me. Farmers and local businesses have invested whole lives in what they expect, and cannot take too much uncertainty about the future. Nor should the English countryside become just a forest, or a leisure park.

But sometimes there comes a chance to tweak policy gently but decisively in an altered direction, so that things begin to change, giving people time to change too. Could Brexit help us take back control of this at least?

Here are two questions to which I may not know the answer, but we should ask — at least because the compass must anyway be reset by 2020, and I think the Defra secretary, Andrea Leadsom, knows something needs to be done.

Her farming minister, George Eustice (another dedicated Leaver) has struck me as a man prepared to think outside, if not the box, the cowshed: he’s been talking sparkily recently about Britain’s chance to lead the way in land-stewardship and compassion towards farm animals; and on new approaches to underwriting this part of our economy.

Only a monster would deny there should be CCTV cameras in slaughterhouses; but chicken factories, cow prisons, industrial wastelands and giant system-built housing estates are on the march across our countryside.

Brexit is a chance for Britain to reshape its farming subsidies in ways that protect the land and use it more intelligently

There’s money here, and money talks, and ministers must stand up to it. Taking back control shouldn’t be from Brussels alone.

Edited extracts from the Times article (paywall)

 

 

 

What does Brexit mean for Britain’s food?

A “decades-old failure to invest in food skills and equitable infrastructure for sustainable development” exposed

In Farming UK, Tim Lang, professor of Food Policy at City University’s Centre for Food Policy – a Lancashire hill farmer before becoming an academic and establishing himself as a leading expert on food issues – has said that leaving the EU will expose a “decades-old failure to invest in food skills and equitable infrastructure for sustainable development.”

Stephen Devlin, an economist with the New Economics Foundation, says, “Now more than ever, with enormous economic and political uncertainties in the air, we need to consciously plan the future of the essential food and farming sector.

“Do we want a sector that is increasingly automated and concentrated, or do we want more diverse growing patterns and more farming jobs?”

A just-in-time food system that could easily be dislocated 

Professor Lang told Farming UK that, in the 1980s, the United Kingdom was 82% self-sufficient in food. This had fallen to 61%. The country was running a food trade gap and the fall in the value of sterling since the EU referendum had made imports more expensive.

Over the last 30 to 40 years a food revolution had resulted in a longer food chain and longer storage. Tesco had adopted its just-in-time system from Toyota. At any one time under this just-in-time system there were just three to five days of food supplies in the UK. “It is highly dislocatable,” said Professor Lang.

He said the UK food system was one in which the farmer made very little from the total money generated. All the money is made elsewhere

Lang said food traders ruled the modern food economy and millions of food contracts depended on cross continental supply chains. The food system was heavily tied into Europe. To sever this would be a task “awesome and unprecedented in complexity.”

In an article currently inaccessible on NEF’s website, Stephen Devlin presents a chart showing net EU food imports.

CHART

food-graph-imports

He adds: “It’s crucial that we don’t just blindly increase production in general to produce more of the commodities that we are already exporting, like cereals and milk. Instead we need to produce a more diverse range of produce more in line with what we actually eat – like more fruit and vegetables. In fact, a more diverse farming system may also have environmental benefits”.

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Article reference via search engine:soursce-food