February 2012 Archives

Positive outlook for beef prices

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Beef farmers can be reasonably confident the firm markets that characterised 2011 will continue throughout this year, according to the EBLEX.

It predicted UK prime beef and cull cow slaughterings would fall this year after a rise in the past two years, while imports would remain well below previous years and continental demand fuelled exports.

Strong export demand was predicted for manufacturing beef in particular, giving further support to the cull cow trade alongside prime beef markets. This should offset any fall in domestic consumption due to pressures on household budgets.

Changes to Single Payment Scheme for 2012

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Look out for changes in the 2012 SPS rules says Robert Sullivan, farming consultant with Strutt & Parker, Morpeth.

This year’s booklet is a supplement and so must be read in conjunction with the 2011 Guidance Notes. Anyone transferring SPS entitlements into the farming business for the 2012 scheme year needs to make sure that the RLE1 form is received by the RPA before the 2 April 2 deadline.

Remember changes to field boundaries need an RLE1 form with a map clearly showing any alterations so the Rural Land Register maps can be updated.

New crop codes will be introduced for 2012 - read carefully to avoid potential delays or penalties being applied to your claim.

The classification of scrub as an ineligible feature may require some changes to field areas on which farmers and landowners can claim.

Consider submitting claims through the SPS online service, says Mr Sullivan. On-screen checks, instant proof of receipt, no postage costs or delays are some of the benefits of this method, which is open for applications now.

 

 

 

 

 

Power firm scraps biomass plant plans

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Drax has scrapped plans to build a large dedicated biomass power station at Selby in Yorkshire.

The firm was “disappointed” with the government’s proposed level of support for the technology, but said it remained committed to using biomass. The company planned to invest £50m this year to increase biomass co-firing capacity at its existing Drax power station from 12.5% to 20% of total output.

While it sources some biomass from the UK, it is likely a large proportion will be imported from areas such as North America in the future.

Dairy UK has published a plan outlining how industry and government should work together to grow the UK dairy sector.

Action for Growth sets out where that partnership activity can best be focused and delivered across 12 key policy areas covering everything from urging government to take a the lead in funding long-term research, to the need for a mandatory framework for country of origin labelling to distinguish between imported products and those made in the UK.

“It is in everybody’s interests that the British dairy industry thrives and grows…to ensure sustainability and success, the industry needs an effective partnership with government,” Dairy UK director general Jim Begg said.

Four versions of Action for Growth have been produced: one for the UK, plus separate copies for Scotland, Northern Ireland and Wales.

Focus on energy to save money

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Want to find out how to save money for your farm business by improving energy use and cutting greenhouse gas emissions? If so, then head to Oxfordshire next Monday (27 February) for the “Save money…saving emissions” conference.

The practical event will outline the pressures facing farmers and show how simple and strategic changes can improve your business. It will feature speakers from the industry, plus workshops led by farmers outlining what actions they have taken on their own farms.

Tickets cost £35 for farmers. See www.farmcarboncuttingtoolkit.org or call Adam Twine on 01367 700 616 for more information.

Scope for higher margins from LFA sheep production

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Higher margins can be earned by Less Favoured Area sheep producers who
concentrate on achieving better physical performance, which is the biggest driver of better results, says EBLEX.

Net margins for LFA breeding flocks rose by nearly £4 a ewe to £7.80 a head in the year to the end of March 2011. Poorer performing flocks could significantly improve returns by lifting rates for lambs born and reared per 100 ewes, return per lamb sold finished and lamb weights.

However, producers still need to watch costs - there is a £5.83 a ewe difference in labour costs between top and bottom third producers, according to EBLEXs' Business Pointers report.

Business Pointers will shortly be replaced by a new free costings service called Stocktake, for which EBLEX is recruiting producers.

Have you got an innovative idea but not enough cash to try it out?

BPEX is offering grants of up to 50% to pig producers and businesses to help them develop their idea and, if it works well, spread the word to other producers.

The scope is broad, from home-grown ideas from the farm, to technology from another sector or overseas, or a new process to improve efficiency or save labour.

A BPEX Knowledge Transfer Manager can help develop ideas further and give guidance on the application form. Previous projects have ranged from £6,000 to £24,000 in total value - contact kt@bpex.ahdb.org.uk for more information.

Money to promote farm produce abroad

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More funding has been made available to help trade organisations promote UK agricultural products abroad.

Up to half the cost of marketing selected eligible goods in the EU and further afield can be met by the European funding, although this rises to 60% for the promotion of fruit and vegetables intended for children in EU schools.

Applicants are expected to fund at least 20% themselves, and the remainder could be passed on to levy payers. Organisations have two opportunities a year to apply for funding via the Rural Payments Agency. The deadline for the first tranche is 15 April 2012. See www.rpa.defra.gov.uk

Yaregrain seeks investors to fund store extension

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Farmer-owned Yaregrain is looking to boost the value of locally grown grain with the extension of its Cantley store in Norfolk.
Thumbnail image for Yaregrain dir walk.JPG
The directors plan to raise £1.5m to expand from the current 10,000t capacity to 15,000t and to install an advanced processing unit.  This will improve marketing options by taking out split and cracked grains as well as colour separating, upgrading peas and beans from feed to human consumption standards. As a result the group will be able to add value by producing cereals and other crops to food grade standards. Each B share in the venture costs £7,500 to include guaranteed storage of 100 tonnes of grain.



For every litre of milk produced, 1,309g of carbon dioxide equivalent is created, according to research carried out by DairyCo.

The report covers the first year of the three year research project which examines the impact of milk production on the environment.

A total of 415 dairy farms of various sizes, systems and geographical locations in the UK took part in the study which was part-funded by levy payers and match-funded by a number of participating milk processors.

“We are now able to provide the dairy industry with a point of reference for the carbon footprint of milk production from British dairy farms, based on current industry performance. This means we can benchmark any year-on-year improvements. This point of reference will also supply factual information to cross reference with other data sets being generated within the industry,” said Ray Keatinge head of research and development at DairyCo.

The carbon footprinting model has been verified by the Carbon Trust.

Positive outlook for world meat prices

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Global beef and sheep prices are likely to remain firm in 2012 as demand from emerging economies grows against a backdrop of generally tight supplies, according to the latest AHDB International Meat Market Review.

“Global beef prices continued to increase in 2011 with prices in major producing countries all ahead of last year. It is likely that firm prices will prevail through 2012,” said AHDB senior analyst Debbie Butcher.

But with some recovery of both beef and sheep numbers, it is possible that prices won’t quite reach the heights recorded during last year. A modest recovery in beef and veal production was predicted in 2012 and the firm prices were also likely to prompt some rebuilding of the global sheep flock, she said.

Cheese processing investment for Milk Link

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Milk Link is to invest another £2.4m in improvements to its cheese processing operations at two sites.

The majority (£2m) will be put into a new high speed, automated, cutting and flow wrapping line at the Oswestry cheese plant in Shropshire. This is the last stage of the co-op’s four-year programme to transform the facility into one of the UK’s leading cheese cutting and packing plants. Work will also shortly start on automatic palletisation at the site.

In addition, a £400,000 advanced whey de-salination plant is to be installed at Milk Link’s Llandyrnog Creamery in Denbighshire to enable the whey to be processed into a range of ingredients and help improve profitability at the site.

Devon auctioneers Rendells and Sawdye & Harris will be joining forces under the name Newton Abbot Livestock Auctioneers to run Newton Abbot Livestock Market.

The market, which was built in 1938, was previously used by both firms to trade separately.

The arrangement will come into effect on 29 February and the first sale will be of cattle from TB restricted farms.

Don't risk lamb penalty in choosy export market

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Holding onto lambs for too long in pursuit of rising spring prices and extra weight could carry a greater risk than ever this season, warns EBLEX. Exchange rate volatility is likely to make export lamb buyers more cautious and more choosy, making the right weight and finish crucial for premiums.

Although export markets have a wide range of specifications, market options for lamb carcases drop markedly at weights of more than 21 kg and classifications beyond 3L for fat, says EBLEX.

Most of the weight gain in heavier lambs will be in fat, which requires more energy to put on than muscle and so increases costs as well as risk, especially when finishing margins are so tight.   

The risk of producing overfat animals is greater with lambs than in cattle or pigs, so handle at least every fortnight and then every week as they approach market quality.
Marking and then weighing representative groups every seven to 7 to 14 days provides a useful extra check on progress.

Apprentices can boost your business

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More farmers are needed to take on the growing number of apprentices who want to work and learn on UK farms. From 6 to 10 February is National Apprenticeship Week which aims to raise awareness of the opportunities for both employer and apprentice.

Given the widespread need to recruit more young people into farming careers, this route must be worth considering but many don’t know where to start. The best place is LANTRA’s website, which has clear and useful information about what’s involved and links to http://www.apprenticeships.org.uk.

There is support for both parties through local colleges and local LANTRA groups, while the training element is Government funded. Apprentices aged between 16 and 18 have a minimum wage rate of £2.60 an hour but many employers pay more, says LANTRA.

Eighty percent of those who employ apprentices think they make their workplace more productive and an even higher percentage think apprenticeships lead to a more motivated and satisfied workforce. 

Price increase for goat’s milk suppliers

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Producers of goat’s milk supplying Delamere Dairy have received a 1p/litre price increase, effective from January.

The increase applied to nine farms supplying around 7m litres of milk a year and took the price to 53.5p/litre for those with a level production profile and who met the required milk hygiene standards.

“With the number of commercial goat herds in the UK still numbering less than 50, encouraging sustainable and well invested milk herds remains a priority for the company,” Delamere Dairy managing director Ed Salt said.

Veal was a best-seller at Waitrose at the end of January after a Countryfile report.

The BBC television programme featured veal on 22 January and since then sales have rocketed by 18%, showing how easily consumer behaviour can be influenced by media coverage.

Waitrose sells more than half of all veal sold in UK supermarkets. It has sold British veal for nearly 20 years and insists all its veal is from calves reared on straw in open housing, and fed a diet of milk and cereal.
Frontier has bought Kent-based specialist agronomy business The Agronomy Partnership (TAP).

The UK’s largest crop input and marketing company has added several agronomy businesses to its stable over the last two years and this move will mean it now has 97 agronomists.

TAP will continue to be based in Wrotham, will keep the TAP name and operate as usual. Martin Dear, director, said this decision would secure funding for future growth and technology investment for customers.
Welsh farmers can receive up to £9,000/ha over 15 years in woodland planting grants.

The Glastir Woodland Creation Grant is available across Wales with a minimum area of 0.25ha. Establishment grants of up to £4,500/ha are available along with a fencing grant of £3.15/m and the Woodland Creation Premium of up to £300/ha a year for 15 years.

A third of the 117 schemes planned so far have been approved by Forestry Commission Wales with the number of trees planted varying from 400 to 10,000.

In addition to providing timber and fuel, woodland can create shelter for crops, stock or buildings. It can also prevent run-off and reduce soil erosion whilst enhancing wildlife and improving shooting income potential.

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About this Archive

This page is an archive of entries from February 2012 listed from newest to oldest.

January 2012 is the previous archive.

March 2012 is the next archive.

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