Much of the focus at the flagship event was on the woes facing dairy and lamb producers in the face of high supplies and static demand.
Industry analysts warned there was little prospect of any significant upturn in the dairy market this year and possibly well into next year.
Hard-pressed dairy farmers were encouraged to do everything in their power to lower their cost of production and stop looking for industry organisations to give them a sustainable return.
Farmers For Action’s (FFA) David Handley and the National Farmers Union’s Rob Harrison upped the pressure on retailers, demanding an end to the damaging discounting of milk.
Harrison singled out Asda, Lidl, Aldi and Morrisons, urging them to start delivering transparency and sustainability and particularly to make sure farmers were not funding retail price wars.
But much of the focus from industry leaders and analysts was on what farmers could do to help themselves in this era of extreme market volatility, including ensuring they did not produce more than their processor and the market needed – while receiving a heavily discounted price for their trouble.
Handley said “It is an indictment on us as dairy producers if we do not talk to our milk processor.
“If you do not find out where the market is, what are you doing the job for?
“Dairy farmers have got to get away from this idea once the pipe has been taken off the tank it is somebody else’s responsibility.”
There was a similar message at the Royal Association of British Dairy Farmers briefing where its chairman Ian Macalpine said some farmers’ solution to lower prices was to produce more to reduce their unit costs.
“What is the point of the industry producing milk it cannot sell?
That is hugely inefficient,” he said.
Tony Evans, of Andersons farm business consultants, said he was encouraging clients to ease off on production and focus on cutting costs, stressing there was “zero logic in increasing what is in the tank beyond what the processor wants to see”.
Research unveiled in Birmingham by Barclays found more than a quarter of farmers thought growth could come from producing more high-value produce while only 5% identified lower costs as part of their growth plan.
Head of agriculture at Barclays, Mark Suthern, said this suggested it was “time for the industry to think differently to ensure UK farming remains competitive and can compete with global players providing cheaper imported produce”.
And Hybu Cig Cymru (Meat Promotion Wales) announced a package of measures to encourage shoppers to choose Welsh Lamb in the wake of a dramatic fall in prices received by farmers.
UK Farmers Guardian
