September 2011 Archives

Robert Wiseman Dairies has warned its retail customers that it will have to pass on higher costs.

The firm, which has already announced it will raise its farmgate price by 1.85p/litre from 1 October in order to secure supplies, said it was in discussions with customers over how to recover the higher costs for raw milk, packaging and fuel. The cost of diesel and resin used to make its plastic bottles had increased by 15% in the past half year, a pre-close trading update said.

But while costs were up, Wiseman said sales volumes had increased through additional supplies to The Co-operative Group and was confident that results for the six months to 1 October 2011 would be “in line with expectations”.

The interim results will be announced on 14 November.

Short prime cattle numbers continue the firm tone for finished cattle prices and the store trade is also flying, although as Farmers Weekly went to press it looked as though deadweight prices might have steadied this week.

As we move into autumn and stronger seasonal demand for beef, some processors are increasing their orders in a bid to stock up and avoid being squeezed out of the market closer to Christmas.

AHBD Meat Services said that the prospects were for things to remain firm in the medium term. The June census showed the English beef breeding herd stable and a slight increase in Scotland's beef herd. However dairy cow numbers were down all round.

Got a planning issue, interest or challenge? Then head off the British Institute of Agricultural Consultants' rural planning conference on 13 October at Kelmarsh Hall in Northamptonshire.

The day promises information and advice on the latest developments, with more than 100 professionals there to answer questions on the complete range of rural planning issues.

Topics for debate include whether the Government’s new localism agenda will stifle sustainable development in the countryside, changing the use of farm buildings to residential, top tips on controlling planning costs, new rules on enforcement.

For further information and booking contact BIAC on 01275 375559 or email info@biac.co.uk

Farmers in Northamptonshire have been urged to show their support for plans to build a new livestock market at Thrapston.

A formal planning application has just been submitted for the proposed mart, which forms part of a new rural agricultural centre. As part of the redevelopment, it is also planned to build a Sainsbury’s store on the existing cattle market site.

Henry H Bletsoe and Son, which operates the market, said the plans had been subject to considerable public debate and urged farmers to register their support. See www.east-northamptonshire.gov.uk and click on “View planning applications” then search for application reference 11/01240/FUL or 11/01234/FUL.

The wide variation in cost of production figures for pig producers around the world is starkly illustrated by provisional figures from BPEX’s annual Interpig report.

The report, which covers 2010, shows a massive 96p/kg difference in pig production costs between the highest, the Czech Republic at 183p/kg deadweight, and the lowest, the Mato Grosso state in Brazil at 87p/kg dw.

While Britain sat roughly in the middle with total costs of 146p/kg last year, this was 8% above the EU average. Costs across the EU were up 2% in 2010 compared with 2009, partly due to higher feed costs.

Over half of the InterPIG group reported a fall in post-weaning mortality, while most countries also experienced an increase in daily liveweight gain.

BPEX will publish the full Interpig report at the end of October.

A new contract for selected growers of Null-Lox spring malting barley has been launched by Gleadell.

The 2012 contract is said to be “non-defaultable” on both quality and yield, meaning that if growers fail to deliver the designated tonnage or miss the 1.92% nitrogen spec required, they will not be penalised and are free to walk away.

Price will be based on the weekly European fob reference price at the time of sale. This is currently €220-225/t, which equates to £180-185/t ex-farm for a grower near the south coast.

Gleadell’s Stuart Shand said the non-defaultable contract could only be offered because the variety had been backed by brewers and maltsters. The barley will be malted in East Anglia and Yorkshire, as well as being exported to the continent as part of the firm’s export programme.

The potential for a massive expansion in the amount of renewable energy to come from biomass over the next few years has been brought into the ongoing CAP discussions this week.

European farm commissioner Dacian Ciolos says the generation of renewable energy offers real opportunities for rural areas and the sector will continue to be supported via the second pillar of the reformed CAP.

But farm ministers are keen that biomass production does not compete with primary food production and suggest more needs to be done to exploit the energy value of agricultural waste and by-products.

The Commission is currently working on sustainability criteria for biomass, which should also be taken into account for imported biomass products.

Look out for FWi's new tax tips where farm accountancy specialists from Old Mill Group offer advice on choosing the correct business structure.

The tax pitfalls and opportunities of the renewable energy sector also come under scrutiny. In the race to get a project up and running, tax can sometimes be an afterthought but as so often, a little planning could yield a far better financial outcome.
 
There is food for thought for tenants too, including a look at the tax treatment of compensation for tenancy surrender. Approached it in the correct way, Entrepreneur’s Relief can be used to cut the Capital Gains Tax rate on these payments from 28% to 10%. As ever, the timing is crucial.

Promoting the nutritional benefits of milk to consumers is the main aim of a new website that has been launched by Tesco.

The site, www.tescomilk.com, also aims to inform shoppers about the wider dairy industry and features the work of the Tesco Sustainable Dairy Group. It includes a video showing the journey from “farm to fridge”, with details on milking, transportation, quality assurances, environmental and welfare practices.

There is also information on Tesco’s Dairy Centre of Excellence at Liverpool University, milk prices paid to farmers, profiles of TSDG suppliers, recipes and a blog from a farmer’s daughter.

Twenty-two fresh fruit and vegetables growers have been paid more than £566,000 in emergency aid as a result of the disruption to their businesses caused by the E coli outbreak in Germany last June.

The RPA made payments to claimants the under Exceptional Aid Scheme two months ahead of the October deadline to compensate for damage resulting from lettuces having to be withdrawn, and for non harvested lettuce, tomatoes and cucumbers.

Extra EU funding ensured that eligible applicants had their claims met in full, said the RPA. There had been a fear that payments could be scaled back if the total value of claims by Member States exceeded the €210m set aside for the scheme. 

Heating oil customers are urged to secure a better price and more reliable delivery by ordering early. The advice might sound obvious, but suppliers say that far too many customers still leave it until the last minute to order fuel.

Forming or joining a buying group could net an even better deal, according to a group of charities and other organisations led by Action with Communities in Rural England.

The run up to Christmas is among domestic fuel suppliers’ busiest periods and many will remember the supply and price problems caused by last winter’s bad weather when some customers ran out of heating oil.

ACRE, Citizen’s Advice and the Federation of Petroleum Suppliers have produced guidance on forming and running a buying group, explaining how oil is traded, highlighting pitfalls and offering help in assessing the best option for rural communities to benefit from group buying.  

For more information contact Louise Rixham at ACRE, l.rixham@acre.org.uk,
telephone 01285 653477 or go to the ACRE website

If like me, you struggle to keep abreast of the increasing number of renewable energy companies, you’ll be glad to hear the latest edition of the Bioenergy Industry Directory is out.

It provides a comprehensive list of companies offering everything from the latest kit to consultancy and other bioenergy services.

“2011 will be a transformative year as the RHI and FiTs underpin the bioenergy markets going forward,” Richard Price from Biofuels Media said. “We fully expect bioenergy use to grow significantly over the next few years as the sector plays its part in achieving the UK’s 2020 renewable energy targets.”

Printed copies cost £25 each (+£2.50 post & packing), but the CD version is £15. See http://www.biofuelsmedia.com/directory

Scotch whisky exports were up 22% in the first six months of this year, worth £1.8bn and accounting for about 25% of all UK food and drink exports. The USA remains the main customer, with France the second most valuable market.

However the biggest percentage increases in business came in some of the emerging markets such as Asia and South America.

In 2010 Scotch Whisky Association members, representing the vast majority of the industry, used 534,000t of malted barley and 561,000t of other cereals (largely wheat). The industry procures 90% of its malted barley from Scottish sources.

Maximising returns from beef and sheep is the aim of a new joint publication by EBLEX and the NFU.

‘A Farmer’s Guide to Selling Finished Beef and Sheep’ provides a checklist covering market requirements, assessing stock against market needs, monitoring prices and booking stock in correctly with abattoirs.

It also covers documentation, identification and ensuring stock is fit for intended purpose. The guide can be downloaded from www.eblex.org.uk, or request a hard copy by emailing admin@eblex.org.uk or telephoning 0870 241 8528.

Oilseed rape could be a more profitable crop than wheat next harvest, according to the latest edition of the industry bible, The John Nix Farm Management Pocketbook.

The latest (42nd) edition has just been published and suggests that in terms of gross margin, osr could outstrip wheat as the highest broad-acre combinable crop for the first time in 20 years.

There’s some welcome news for livestock farmers too, as the new edition says beef and sheep gross margins also offer “greater opportunities for profitability than for many years” on the back of price increases.

The outlook for poultry is less optimistic though, as the most intensively farmed caged egg chickens are budgeted a negative gross margin per bird, even before overheads are included.

London’s wholesale markets need more home grown fruit and vegetable supplies - market bosses say they are struggling to get their hands on British produce.

Producers can be put in touch with traders and catering wholesalers in each of the markets by the Business Development Managers scheme set up by the Greater London Authority and run by the NFU.

“These businesses deliver to thousands of outlets every day, from hospitals and schools, to pubs, clubs, fine dining hotels and restaurants, as well as top class sporting venues,” says NFU food chain adviser Lorna Hegenbarth.

With local food sourcing a priority for the 2012 London Olympic Games, there is also a drive to increase the number of traders and wholesalers who are Red Tractor licensed.

The BDM initiative is part of the Mayor of London’s food strategy, aiming to increase the supply of local, regional and sustainable food into the city by working with market traders and the rest of the food chain. For more information contact Laura on 02476 858648