Farming News Review - April 2010

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Policy issues CAP (etc.) support details/payments Grants Farm finance Product prices

Other crop news Other livestock news Inputs Marketing Miscellaneous

Policy issues

The Government has launched the Global Food Security project, co-ordinating research and policy between Government departments, research bodies and executive agencies.
A bill to create a Grocery Market Ombudsman passed its second reading in Parliament and has moved on to the committee stage. The bill, if enacted, will result in the appointment of an ombudsman to police the Groceries Supply Code of Practice.
A Sustainable Livestock Bill has been tabled by Peter Ainsworth, former Shadow Defra Secretary. It calls for the next Government to deliver a strategy within two years which will “significantly reduce the global and domestic impact of UK livestock production and consumption”.
Spanish MEP’s in the European Parliament’s Agriculture Committee have won support to reintroduce the ban on the sale of misshapen fruit and vegetables. It is thought the relaxation of the ban has reduced food waste and cut retail prices by up to 40 per cent.

CAP (etc.) support details/payments

Nicolas Sarkozy, President of France, has indicated he is prepared to accept cuts in EU farm spending on condition that Europe’s farmers are given greater protection against imports.
Farmers whose Higher Level Stewardship agreements start in July will receive enhanced payments for items including hedgerow, stone wall and bank restoration, fencing and the block of grip drainage channels.
Ninety per cent of farmers whose Entry Level Stewardship agreements are due to expire in July have indicated their desire to continue.
The Government has been ordered to repay £15.9 millions to the European Commission for its failure to comply with CAP rules. Of the total, £12.5 millions was as a result of the Rural Payment Agency’s inability to meet statutory deadlines on direct payments. Most of the balance was down to Defra’s failure to properly administer the rural development scheme.
Defra Secretary Hilary Benn has accepted the recommendations of the Parliamentary Ombudsman and agreed to pay compensation to up to 24 farmers for the “stress, anxiety and financial impact” suffered as a result of maladministration of the 2005 Single Payments Scheme.

Grants/regulations/legislation/environment

A new farm assurance scheme has been launched by the NFU and the Environment Agency to benefit pig and poultry producers who are regulated through the Environmental Permitting Regulations. Qualifying farmers will have one annual inspection which will be carried out as an adjunct to audits for Red Tractor assurance.
The NFU is working with Defra and the Carbon Trust to help grower and farm businesses obtain loans of £12 millions to upgrade to more energy-efficient equipment.
The Council of Food Policy Advisors has published “Food: a recipe for a healthy, sustainable and successful future.” The report to government recommends that efforts to promote healthy diets and environmentally sustainable food production should focus on the power of consumer demand to bring about change.
New exemptions from the Government’s waste regulations come into force on 6 April including a revised exemption for the use of waste in construction which will allow tarmac road planings to be used in farm tracks. However, plastic wires entangled on the haulm of glasshouse plants may not longer be burnt.
Research commissioned by the Waste & Resources Action Programme has shown that compost used by growers poses no health risks to humans, animals or the environment.
The Raspberry Breeding Consortium has been granted £395,000 by the Scottish Government.
The Scottish Government has made available £100,000 to help crofters map the boundaries of their land and secure ownership.
Freshfield Fruits has been awarded £250,000 by Advantage West Midlands to build a 13 hectare eco-friendly strawberry-growing site at Nunnington near Hereford.

Other matters of farm finance and tenure

Defra is to be required to reduce spending by £194 millions by 2012/13 as part of government savings. Spending on consultants will be cut by £25 millions and savings of £100 millions will be made in finance, human resources, ICT and procurement administration costs.
Anglia Farmers has reported that input prices have risen by 2 per cent in the past 6 months mainly due to increased fertilizer prices taking the increase since September 2006 to 28 per cent.
Shropshire Council has published the “Shropshire Core Strategy Final Plan” which sets out planning policies for the next 16 years. It includes a policy whereby any residential barn conversion of up to five dwellings could attract a financial levy of 50 per cent of the costs of construction payable to the council to contribute towards affordable housing. Other local authorities are watching with interest.
A new protocol has been developed by the Gangmasters Licensing Authority which will result in the GLA, supermarkets and suppliers working together to tackle exploitation in the fresh produce industry.
An inquiry by the Equality and Human Rights Commission has uncovered “widespread evidence of the mistreatment and exploitation” of abattoir workers. It found workers who reported physical and verbal use and a lack of proper health and safety protection.

Product prices

A. Crops

The cereals market is not quite as bearish as was indicated last month. Prices have improved by small margins on all crops, although this is not thought to be the beginning of a recovery. A strong factor in the volatility continues to be the currency markets, with sterling weakening against the main currencies, although not against the Euro which has taken a fair hit after the announced support plans for Greece. The International Grains Council still sees world wheat production for 2009/10 at 675 million tonnes and has scaled back its predictions for 2010/11 marginally to 658 million tonnes. UK and European wheat is travelling further than normally seen, with reports of boats going to South America and the Far East, indicating how low our price stands on the world stage. 3 Monthly Farming Update LIFFE wheat futures in late March, compared to February’s closing position, improved across the board, but to differing extents: deliveries in May 2010 and November 2010 and 2011 stood at £97/tonne (up £3), £104/tonne (up £2) and £110/tonne (up £1) respectively. May 2012 futures improved by the greatest margin, standing at £118/tonne (up £5).
Average spot prices in late March (£/tonne ex-farm): feed wheat 91; milling wheat 107; feed barley 76; oilseed rape 247; feed peas 131; feed beans 131.
Potato prices were poor once again this month. The average price held quite stable early on, but dropped back in the final week. Prices in late March stood at £108/ tonne, down 2 per cent on last month and 14 per cent below prices in March 2009. The free market price was more volatile, dropping to a low of £81/tonne but recovering partially to end the month down £5 at £85/tonne; 29% below the price a year earlier (£120/tonne). Growers with good product appear to be keeping stores sealed, awaiting an end of season flourish; meanwhile packers’ demands are still being covered by contracted crop. Top quality crop is still able to find willing buyers on the free market, but much of the trade is of the plentiful supply of poor to average samples, resulting in a depressed market.
By late March, King Edward had improved, achieving between £130 and £150 for general pack, with high quality samples reaching £180/tonne; Estima had weakened and were obtaining between £55 and £80/tonne for wholecrop, reaching £100 for good baker content; Desiree prices had slightly improved, with general pack achieving from £100 to £120/tonne, £140/tonne for best quality; Maris Piper prices remain spread, ranging from £80 for value pack up to £150/tonne for grade 1, but achieving as much as £200/tonne if the sample quality is premium.

B. Livestock

Average steer prices held steady this month, dropping only by a very small margin at the start, but recovering by the same amount by the end. The closing position of 150p/kg lw was on a par with February’s close and 5 per cent below closing prices a year earlier. The average heifer price improved at the end of the month to close at 156p/kg lw, doubling the premium over steers to 6p/kg. The average price for dairy cows in late March stood at £1,260 per head, 8 per cent above last month’s close.
Lamb prices have started to build again, but only quite steadily. By late March the average UK lamb price was up 2.5p at 186.5p/kg lw, a 1 per cent improvement on February’s close and 8 per cent above prices a year earlier.
The recovery of the average pig price tailed off in March, gaining by a total of 1p/kg over the course of the month to close up by less than 1 per cent at 142p/kg lw. Due to a recovery at this time last year, the average price is now on a par with prices a year ago.
The average UK farmgate milk price for January (reported in March) stood at 24.67ppl, down by 0.03ppl. The average price a year earlier was 0.89ppl higher (3.6 per cent). Milk quota prices slipped for the third month in a row, with clean 4% butterfat holdings dropping back to 0.36ppl. Leased quota (4% butterfat) held steady for a further month at 0.07ppl.

Other crop news

Jack Watts, the AHDB-HGCA market intelligence analyst, has forecast the US maize crop will be a greater influence over UK wheat markets than the UK wheat crop itself in 2010.
Green energy company Vireal is to commence construction this summer on a 530,000 tonne demand plant to produce bioethanol with production forecast to commence in 2012. Gleadell is to supply the grain and Vireol has secured a 10 year “take or pay” purchase contract with a major fuel company.
The Biotechnology and Biological Sciences Research Council has joined with the Scottish Government and 13 private companies to form the Crop Improvement Research Club. It will focus on research to improve oilseed rape, barley and wheat yields, improve their nutritional content and reduce their environmental impact.
Isle of Wight co-operative Grain Storage has commissioned Frontier Agriculture to markets its grain.
Figures released by the International Service for the Acquisition of Agri-biotech Applications show that 14 million farmers in 25 countries are now growing 331 million acres of GM crops worldwide, an increase in plantings last year of 7 per cent. Brazil is the biggest grower at 52.8 million acres.
The EU has approved the cultivation of the genetically modified potato Amflora. It will be grown mostly in Germany for industrial purposes such as paper, not for food.
The Agricultural and Horticultural Development Board has announced an increase in the potato levy of 3 per cent from April.
The Defra December 2009 agricultural holdings survey shows the wheat acreage in England up 10.9 per cent to 4.4 million acres, in Scotland an increase of 17.3 per cent to 260,000 acres and in Wales an increase of 14 per cent; oilseed rape is up by 9 per cent in England and 14.7 per cent in Scotland; barley acreage is down by 4.8 per cent in England and 2.2 per cent in Scotland but up by 8 per cent in Wales.
The John Innes Centre is to collaborate with pea breeders, growers and processors in a £1.5 million project to discover how taste and tenderness in peas can be determined by biochemistry and genetics.
Tenderstem broccoli has been re-branded with a new logo and website www.tenderstem.co.uk
A pilot scheme to create efficiencies in sugar beet transport is to be introduced by British Sugar for those growers who supply Wissington and Newark. Selected growers will be offered an ex-farm contract whereby British Sugar will load, clean and deliver beet from field to factory, managing and paying all transport costs. In addition growers may join a “harvesting operation” whereby British Sugar would draw up a programme of harvesting allocations with the intention of brining crop lifting and delivery operations closer together.
The Scottish Crop Research Institute has joined Legume Futures, a consortium of experts from EU countries, to help find better ways of using legume crops, including peas and beans.
13 UK soil laboratories have formed the Professional Agricultural Analysis Group. The group will create a soil proficiency testing process for routine soil analysis of phosphorus, potassium, pH and Mg and test results will be aggregated to produce annual reports that will track trends in soil analysis data.
Campden BRI are to carry out a survey of growers of protected crops on behalf of the European Food Safety Authority looking at pesticide emissions from protected crop systems.
East Malling Research has identified a predatory beetle Anthocoris nemoralis which can be used to help combat pear sucker.
East Malling Research and the Natural Resources Institute have opened the Jim Mount Centre to sustain and build on existing fruit tree research.
The first British strawberries of the year have been produced by Harry Hall for Waitrose.

Other livestock news

The Defra December 2009 agricultural holdings survey shows the number of sheep and lambs in England fell by 3.8 per cent, by 2.2 per cent in Scotland and by 5 per cent in Wales; cattle increased by 1 per cent in England but fell by 1.2 per cent in Scotland’ pigs rose by 4 per cent in England and by 3.2 per cent in Scotland but fell by 14 per cent in Wales.
The United States Department of Agriculture’s cattle inventory at the end of January reported the lowest number of beef cows since 1963 and the lowest overall cattle count since the 1950s.
Figures released by Defra show that 36,322 cattle were slaughtered in 2009 as a result of bovine TB compared with 39,948 in 2008; there were 4,574 new herd incidents compared with 5,012 in the previous year; the number of herds tested increased by 7 per cent; the number of herds subject to a TB2 restriction increased by 5 per cent.
The National Suckler Strategy Group has been formed by a group of suckler beef producers to develop a sustainable strategy for the future of the beef industry.
The Meat Hygiene Service is to be formally dissolved and its staff and functions absorbed by the Food Standards Agency with effect from 1 April.
Manufacturers of the three cypermethrin sheep dips have voluntarily withdrawn their Marketing Authorisations for the products.
A shortage of supply and strong demand have driven wool prices up to 113p/kg compared to an Indicator price of 73p/kg last October.
Average milk yields in the year to September 2009 from Holstein herds have fallen for the fourth year in succession according to NMR figures. The average yield is now 8,215kg at 3.89 butterfat and 3.22 per cent protein. Other main dairy breeds have also seen a slight fall in production but Guernsey, Brown Swiss, Montbeliarde and MRI herds have not.
Arla is to reduce the price paid to non-aligned milk producers by 0.05ppl.
First Milk is to close the cheese manufacturing plant on the Isle of Bute.
Defra has announced that dairy farmers will receive a 0.2ppl bonus on milk produced in the year to September 2009 from the EU Dairy Fund.
Graham’s The Family Dairy has launched the UK’s first 1 per cent organic milk which is to be sold by Sainsbury’s.
The Environment, Food and Rural Affairs committee has published its report on the collapse of Dairy Farmers of Britain. It claims the co-operative expanded too quickly and paid too high a price for Associated Co-operative Creameries in 2004. Problems were exacerbated by poor management and a lack of communication with members.
As a result of moving to market-related pricing, some First Milk suppliers will receive increases of 0.8ppl. The largest increases will go to those producers supplying the liquid pool while those supplying the “Highlands and Islands” Scottish creameries will receive a cut of 0.35ppl.
A new study to be published in the June issue of the journal “Nutrition & Food Science” reveals that eggs are one of the most nutrient-dense foods and consumers should be eating at least one egg a day to reap the optimum benefits.
Natural England is to spend £16 millions in the New Forest to maintain the traditional grazing area of cattle, ponies and pigs.
Defra has announced a new code of practice for game rearing which is due to come into effect on 1 October.

Inputs/Supply businesses

The proposed takeover of Terra Industries by Yara has failed as US fertiliser giant CF Industries has launched a bid valuing Terra £500 millions greater.
The fungicide Signum has gained approval for use in vining peas and combining peas.
Eurofins UK Contaminants laboratory at Wolverhampton has come 8th out of 148 laboratories across Europe in the EU pesticide proficiency testing scheme.
Actara has gained approval for the control of aphids in potatoes.
A new voluntary quality assurance measure, BSI PAS 110, has been introduced for nutrient-rich fertilizer and soil conditioner produced when bio-degradable wastes are treated by anaerobic digestion.
Savona has received approval for use on garlic, salad onions, cress, spinach and winter crops.
Commercial use and trials carried out over a 7 year period have indicated that use of the fertilizer additive Kicka can reduce use of nitrogen by potato growers by up to 20 per cent.
Sumi-Alpha and Sven, insecticides mainly used on wheat and barley, have been given approval for the control of aphids in potatoes; pea and bean thrip in vining peas; and caterpillars and midges in brassica crops.
Trials conducted by the Processors & Growers Research Organisation have shown that Syngenta’s thiamethoxam, best known in the sugar beet and oilseed rape sector, will aid pest control in vining peas, reducing the incidence of thrip, pea weevil and pea aphid.

Marketing

The European Parliament’s Environment Committee has voted in favour of rules requiring all meat, poultry, dairy products, fresh fruit and vegetables to carry labels indicating the country of origin. Similar labels will also be required for meat, poultry and fish in processed food.
Sainsbury’s is to only stock British frozen peas from April.
The Mushroom Bureau has launched its first fully integrated communications campaign “Mushrooms Make Sense”.
Yorkshire Forced Rhubarb has been granted Protected Designation of Origin status.

Miscellaneous

Farmers Guardian has announced a new two-and-a-half day conference and exhibition, “CropWorld”, to be held at the ExCel exhibition centre in London in November.
The future of Bicton College, the last agricultural college in Devon, is in doubt after the Learning and Skills Council refused to eradicate the college’s £3 millions of debt prior to joining forces with Exeter College.
Willie McKeever, farmer and past-chairman of Kent Country Agricultural Society, has died.
Basil Neame CBE, a fruit grower and past-president of the East Kent Fruit Society, has died aged 88.