Wales Farmer February 2013 NEWS Welsh sheep crisis


‘Perfect storm’ brews after collapse in market prices


A‘PERFECT storm’ is threatening the future of the Welsh sheep industry, afarming leader has


warned. The wetweather,increased


input costs,the eurozone crisis and imported lamb undermin- ing the marketare driving forces behind thefresh crisis in the sheepsector. Prices have collapsed by £20-


£30 compared to last year and estimates suggests Welsh hill sheep incomes will be slashed by morethan half,falling by around 56%. NFU Cymru president Ed


Bailey said: “This last year has been extremelychallenging for Welsh sheep farmers,while the challenges we face areinthe main short-termfactors,they have shaken producer confi- dence to the core. “Wehaveaworld renowned


product, butfarmers arehaving to sell at rock bottom prices. Rising input costs alongside the continuing poor weather only compound the position thatwe nowfind ourselves in.” Mr Bailey highlighted his concerns to the deputy minister foragriculture, Alun Davies, during arecent meeting. He added: “Despite the fact


thatIremain optimistic forthe long-termprospects of the Welsh sheep industry,Iamhow- everconcerned thatrecent events will makeanumber of producers consider their future


Retailers urged to back British


THE National Sheep Association (NSA) is urging retailers to back British lamb. High volumes of New


Zealand lamb on supermarket shelves is an added blow to UK sheep farmers at atime when farm-gate prices are struggling and manyare not receiving financial returns that coverthe cost of production. Despite farm-gate prices


dropping by up to £30, retail prices have not followedsuit to encouragemoreconsumers to buyBritish lamb. Phil Stocker,NSA chief


executive said: “The weather last summer and autumn resulted in lambs growing far


plans fortheir sheep enterprises. “I fullyrespect thatmarket


prices arebeyond the control of Welsh Government, butIdofeel thatitdoes have the powers to help us through this winter by making use of resource via the EU-approved Wales Rural Development Plan (RDP).” Mr Bailey urged the Welsh


Government to consider how support can be deliveredinto upland rural communities as part of the next RDP,but also called forthe re-instatement of the Less Favoured Area (LFA) support scheme.


slowerthan normal and this has delayedthe normal seasonal peak of production by six to eight weeks. “Unfortunatelythis peak


then clashed with NewZealand imports,which has led to a severe fall in prices.Inanideal worldthe result would be a drop in shelf price,which would stimulate moredemand with the price balancing itself out, butthe realities of our markets mean thatthis is not happening.” Although the UK always


sees aseasonal peak and trough of numbers of lambs marketed, UK lamb is never out of season.


He added: “It is looking


increasinglylikelythatthe next RDP will not be implemented before2015, leaving avacuum of at least 36 months between the final Tir Mynyddexit payment and apossible futurepro- gramme being implemented. “GiventhatTir Mynyddisan


approved programme measure under the Wales RDP 2007-2013 and giventhe exceptional cir- cumstances thatwenow find ourselves in, we ask thatyou consider,asaninterim measure, re-instatement of our approved LFAsupport scheme.”


“Across the UK we have a


varied climate which results in earlier and later lambing and this in itself spreads the supply of lambs,” added Mr Stocker. “In addition, when you consider the close relationship between sheep farming and our iconic landscapes –our hills and uplands,downland, lowland meadows and coastal marshes –and the diversity of breeds they support, it is easy to see whyquality lamb is availableall year round. “Weknowthe public value


our countryside and landscape and by choosing UK lamb we can all do our bit to makesure we support the farmers who


With uncertainty over the


futureofthe Welsh Country Foods processing plant on Anglesey also compounding the situation, Mr Bailey called for support from processors,retail- ers and the Welsh Government. “I would urge our processors


and retailers to recognise the very real issues sheep farmers face this winter and showtheir support to Welsh farmers through committing to astrong marketing and promotion cam- paign fordomesticallyproduced lamb and ensuring primary pro- ducers receive afair price for


arekeeping it in acondition for us to enjoy.” Mr Stocker also issued a


rallying cry to consumers to buyBritish lamb. He said: “A quick look at


supermarketshelves shows NewZealand is often avery similar price to British lamb and thatfrequentlythereisa range of products and amix of nationalities.Weurgeyou to consider the UK sheep farmers,working hardinthe terrible weather we have seen, and buyBritish lamb evenifit means trying adifferent cut or cooking method –you never know, youmay find anew familyfavourite.”


their produce,” he said. “With the domestic market


situation as it is,surelynow is the time forthe rest of the sup- plychain to commit to home- produced lamb.Therecan be no reason whyretail shelves need to be filled with imported lamb when thereremains aglut of lamb left to be marketed and sold in the UK.”


● See page 5for more on the threatened closure of the Welsh Country Foods processing plant on Anglesey.


‘Major coup’ as German store sells Welsh lamb


ONE OF Germany’smost pres- tigious stores has started selling Welsh lamb to its customers. Galeria Kaufhoff, an upmar-


ketretailer with morethan 100 stores,has been selling Welsh lamb


with Protected


Geographical Indication Status at its 35 food courts since last autumn.


It is the latest major storein


Germanytostock Welsh lamb, whereexports increased by 164% to morethan £12 million in 2011. Patricia


Czerniak, the


German export agent forWelsh redmeatpromotion bodyHybu Cig Cymru (HCC), said: “It is a major coup forWelsh lamb to be


listed by Galeria Kaufhoff, which arethe forecourts of the cities.


“Their customers tend to rep-


resent the top-end consumers whowill be looking forquality products such as Welsh lamb.” As well as buying Welsh lamb, customers have also been able to pick up special Welsh Lamb


recipe booklets,which have been availablefromthe stores’ meat counters. LauraDodds,HCC’smarket


development manager,said: “Germanyisthe second largest export marketfor Welsh lamb and the addition of Galeria Kaufhoffwill help to grow this marketfurther in the future.


marketing


“HCC has been running a campaign


in


Germanythis year which has helped to raise recognition of Welsh lamb to German con- sumers.” Welsh Lamb is also sold at


Frische Paradies and through Schwamm &Cie Hamberger Grossmarkt.


and 3


Tucking in to aweek of events


AWEEK-LONG series of events celebrated the greatBritish break- fast in January. The


annual Farmhouse


Breakfast Week campaign has become acornerstone of the food calendar in Wales. The Farmers’ Union of Wales


(FUW) hosted abreakfast at the Seneddtolaunch the event, show- casing the best of Welsh breakfast produce. FUWpresident Emyr Jones said


the union is akeen supporter of Home GrownCereals Authority’s (HGCA) campaign, which aims to raise awareness of the benefits of eating ahealthybreakfast and demonstratethe rich variety of breakfast foods availableinthe UK. “I am awarethatinthe UK one


in four people skip breakfast dur- ing the week and as manyasone in six adults nevereat breakfast even though experts claim it is the most important meal of the dayand plays akey role in helping tackle obesity,” said Mr Jones. “The NHS also says eating


breakfast has long-termhealth benefits and can reduce obesity, high blood pressure, heart disease and diabetes. “The theme forHGCA’s cam-


paign ‘Shakeupyour wake up’ encourages us to makesmall changes to our morning routine to makesureyou have time forbreak- fast every day! “It is all about showcasing the


most important meal of the dayin abid to raise awareness of the health and nutritional benefits of breakfast and the huge variety of top quality farmproduce available in Wales –ranging from bacon, sausages and eggs to speciality dairy products,breads and cere- als.”


Deputy minister foragriculture


and food, Alun Davies attended the FUW’sevent, which is becom- ing acornerstone of the Welsh food calendar. Mr Davies said “Food is aprior-


ity forthe Welsh Government and we aresupporting the industry to develop and move in positive new directions,embracing newtechnol- ogyand advancements in research and development to put Wales at the forefront of food production. “Food production is an impor-


tant part of the Welsh economy and Wales offers avariety of qual- ity products and Ihope all of our partners will supportthe Welsh Government’sdrive to promote these,including encouraging our partners to procurelocal food whereverpossible.This is agoal in which we can all participate and takeresponsibility.” Alongside the Farmhouse


Breakfast event, the FUW hosted 25 breakfasts on aten farms in Caernarfonshire, Denbighshire and Flintshire, and another at Bryncir livestock market’scafe,as well as its traditional House of Lords lunch. The UK-wide Farmhouse


Breakfast Week campaign takes place every January and has been organised by the HGCA since 2000.


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