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Farming

Horizon document looks to future

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Sheep industry: In the firing line

A NEW analysis of Brexit’s potential impact emphasises the need for agricultural businesses to prepare for the future to ensure the long-term prosperity of the £1.6 billion Welsh farming sector.

The Horizon document, ‘Exploring the implications of Brexit for agriculture and horticulture in Wales’, has been produced by Hybu Cig Cymru – Meat Promotion Wales (HCC) and the Agriculture and Horticulture Development Board (AHDB) and analyses a range of scenarios surrounding trading access, agricultural support payments, and movement of labour.

The report echoes other independent analyses which conclude that the sheep sector is most exposed to a ‘hard’ Brexit scenario. Over a third of PGI Welsh Lamb is exported abroad – over 90% of it to the EU – therefore the prospect of Tariffs or other barriers to trade is among the greatest risks.

Various other sectors could be affected in different ways in terms of trade and rural payments, and the report notes the potential vulnerability of the abattoir and processing sector to restrictions on migrant labour.

However the report concludes that the most efficient enterprises are best-placed to thrive in a changed environment, and lists a range of resources, provided by AHDB, HCC and Welsh Government’s Farming Connect programme, which can help farmers to prepare.

HCC’s Industry Development and Relations Manager John Richards said​:​ “The scenarios presented in the report represent the extremes of what we might expect from Brexit – anything from a free trade deal with Europe which allows us to trade exactly as we do now, to full tariffs on all agricultural imports and exports.”

“However, it’s very important that agri-food businesses take steps to assess the possible impact on their sector, and begin to plan accordingly through benchmarking and other tools,” he added. “HCC is ready to work with Welsh Government, Farming Connect and the whole sector on a range of initiatives to help make the transition.”

“We had a number of interesting discussions with farmers and industry representatives at the Brexit roadshow events we held – again jointly with AHDB – earlier this year,” said John. “It’s not easy to plan when we don’t know the final outcome, but knowing their costs and maximising efficiency is something farmers can do straight away which is certain to help.”

AHDB Head of Strategic Insight David Swales said: “For some sectors, Brexit presents a number of opportunities, while other parts of the industry face some potential challenges when we leave the EU.

“While we do not know all the details, we would rather farmers and growers start to prepare now based on the information we have at present. We will be updating our report as more information becomes available, but this latest Horizon document allows industry to avoid the wait-and-see approach, which we believe is high risk.”

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Farming

Farming faces zero carbon challenge

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AN AMBITIOUS new target to reduce greenhouse gas emissions to zero by 2050 will lead to significant changes in farming practices over the coming decades, according to a leading agri-environment specialist.

Professor Iain Donnison, Head of the Institute of Biological, Environmental & Rural Sciences (IBERS) at Aberystwyth University, was responding to the publication of ‘Net Zero: The UK’s contribution to stopping global warming’ published by the UK Government Committee on Climate Change.

Professor Donnison is an expert on agriculture and land use, which feature in the report in terms of targets for one-fifth of agricultural land to be used for forestry, bioenergy crops and peatland restoration.

According to Professor Donnison, such a reduction is very ambitious but achievable in Wales and the wider UK. “Land use can positively contribute towards achieving the net zero targets, but there are challenges in relation to emissions from agriculture especially associated with red meat and dairy,” said Professor Donnison.

“In IBERS we are already working on how to make livestock agriculture less carbon intensive and developing new diversification options for the farming of carbon. For example, net zero targets could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

Professor Donnison added: “The report gives a clear message regarding the importance of the task and the role that the UK can play to compensate for past emissions and to help play a leadership role in creating a greener future.

“The report says it seeks to be based on current technologies that can be deployed and achievable targets. One-fifth of agricultural land is a very ambitious target but I believe that through the approaches proposed it is achievable (e.g. for bioenergy crops it fits in with published targets for the UK). This is based on the knowledge and technologies we have now regarding how to do this, and because right now in the UK we are developing a new agricultural policy that looks beyond the common agriculture policy (CAP). For example, the 25-year Environment plan published by Defra envisages payment for public goods which could provide a policy mechanism to help ensure that the appropriate approaches are implemented in the appropriate places.

“The scale of the change, however, should not be underestimated, although agriculture is a sector that has previously successfully responded to challenges such as for increased food production. The additional challenge will be to ensure that we deliver all the benefits we wish to see from land: food, carbon and greenhouse gas (GHG) management and wider environmental benefits, whilst managing the challenge of the impacts of climate change.

“The link is made between healthy diets with less red meat consumption and future reductions in greenhouse gas emissions from agriculture. This reflects that agriculture will likely go through significant change over the coming decades as a result of changes in consumer diets.

“Net Zero targets, however, could provide significant diversification opportunities for both farmers and industries that make use of biomass and wood for the production of energy, materials including in construction and for wider environmental benefits.”

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Farming

HSE fees up 20%

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A FEE imposed on farm businesses found to be in breach of health and safety legislation has gone up nearly 20% to £154/hr.

Since October 2012 the Health and Safety Executive has operated a cost recovery regime, which means that businesses are charged for the costs of an investigation from the point a material breach has been identified through to the point when a decision is made on enforcement action.

If you are found to be in material breach of health and safety law, you will have to pay for the time it takes the HSE to identify the breach and help you put things right. This includes investigating and taking enforcement action. This charging scheme is known as a Fee for Intervention (FFI).

Robert Gazely, farm consultant and health and safety specialist for Strutt & Parker said: “A material breach is something which an inspector considers serious enough that they need to formally write to the business requiring action to be taken. Once an inspector gives a farmer this written notification of contravention (NoC), the farmer will be expected to pay a fee.

“From 6 April 2019, the hourly charge has been increased from £129 to £154. The final bill will be based on the total amount of time it takes the HSE inspector to identify the breach and their work to help put things right.

“Of course, the primary reason for farms to be proactive in their approach to health and safety should be to protect themselves, their families and any employees.

“The number of people who are killed and injured each year on farms remains stubbornly high and the human cost of these incidents can be incalculable to those affected.

“But taking a safety-first approach should also help farm businesses to avoid a financial hit, as the HSE fees can mount up in the event of an investigation.”

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Farming

Red meat gives ‘Taste of Wales’

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WELSH Lamb and Welsh Beef were among the finest of Welsh foods at Wales’ largest and most prestigious food and drink trade event, Taste Wales last month.

The remarkable display of products, all under one roof, brought together a large contingent of UK and overseas buyers, including importers with a specific interest in Welsh red meat. These included a major foodservice and retail importer and distributor from Scandinavia that imports 6,000 million tonnes of meat annually from all over the world. The company is recognised for bringing tasty food experiences to Nordic dining tables.

They were invited to the event by Hybu Cig Cymru – Meat Promotion Wales (HCC) who also arranged site visits to some of Wales’ major red meat processing plants. The main aim was to impress the importers with the industry’s high ethical and environmental standards.

The visit, led by HCC’s market representatives in Scandinavia, was a platform for many productive and promising discussions.

One representative, Anette Stenebrandt said at Taste Wales: “We have a company from Sweden and Finland with us, trying to do some new business in the Nordic-speaking countries. This is really a fantastic fair and we have enjoyed it a lot.”

Her colleague Jakob True added: “This is our first time here at this amazing event, it’s a great opportunity to meet a lot of Welsh producers, particularly Welsh Lamb which is world-class, we know. We’ll go back to Scandinavia with a lot of good new leads and hopefully bring a lot of business to Wales.”

HCC’s Market Development Manager, Rhys Llywelyn said: “Many of the buyers we met at Taste Wales, including the Scandinavians, showed a significant interest in Welsh Lamb and were impressed by the whole package – from the story of producing Welsh Lamb to the processing techniques, the taste and texture.

“Others also expressed a keen interest in forging deals with the industry, including a Japanese department store, a major buyer from Hong Kong and a representative from Qatar. This bodes well for the future, especially as Brexit uncertainty is set to continue in light of the extension on Article 50.”

In recent months, HCC has undertaken a strategic GB marketing drive to encourage growth and recognition of our quality produce on British soil.

HCC’s UK Market Development Executive, Emily Davies said: “Our presence at Taste Wales also included concentrating our efforts on promoting Welsh Lamb in the domestic market. We met a number of foodservice companies, retailers and executive chefs and discussed Welsh red meat opportunities with meal-kit companies and online retailers. We also launched a new tool-kit for retailers which highlights the ways in which we can work with them to promote Welsh Lamb and Beef.”

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