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Agricultural Predictions for 2009

Last post Mon, Jan 5 2009 20:51 by boveyfarmer. 13 replies.
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  • Sat, Jan 3 2009 16:30 In reply to

    • Peter Wells
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    Agricultural Predictions for 2009

    What are readers predictions for farming in 2009 ?

  • Sat, Jan 3 2009 16:30

    • Peter Wells
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    Agricultural Predictions for 2009

    What are readers predictions for 2009 ?

    Possible topics. Subsidies. Supply Chains. Labour. Wildlife. Red tape. Farm Inspections. Product Standards. Changes at Defra. Disadvantages and advantages of scale. Transport. Energy Costs. GM. Bio-technology. Equipment. Materials. Animal Rights and Welfare. Global markets.

     

  • Sat, Jan 3 2009 17:48 In reply to

    Re: Agricultural Predictions for 2009

    Peter,

          Good Question,my thoughts are that we are going to see big change by virtue of evolution. The World could not carry on in the manner of Mad Mad Money and reality has hit home. These Forums have seen disbelief of the way GB Ltd has been able to carry on without manufacturing a great deal but the truth is now out, the sham of the City of London is for all to see. The Retailers are now having the Reality Check hit them and I think we will see the Solicitors Offices up and down the Country with the Estate Agents,Surveyers and all aspects of the House sales together with the complete Building Industry.Next will have to be the Local Council Offices then all Govt Depts and the cuts will be harsh and we will see the total wastage of Public Money that has been going on.

       Because we will have such a Trade Deficit we will have to Pump more Oil and Gas as well as grow more of our own Food.The Retailers will have to look at short supply lines so that they are not so exposed and we could see a lot more manufacturing return especially small scale where there is not too much over exposure as Credit looks like being very scarce. The Agriculture Industry may have good opportunities at Direct selling because I still believe that Food and Commodities are going to be in short supply and the focus will be on buying correctly and selling well in volatile Markets with tight Credit controlling the overall Market.

       Because of the constraints that Govt Depts will have to endure the Stupidity of Hiding from the truth on TB and the ever stupid incurshions of the State by virtue of the Inspector into all aspects of life will have to change and this is the time for Joe Public to have his say not the minority pressure groups.

      All in all opportunity in hard times which always bring reality to the fore.

  • Sat, Jan 3 2009 19:09 In reply to

    Re: Agricultural Predictions for 2009

    Subsidies: Should be seen as, and re-labelled as 'investment' . Which means forget armies of consultants, marketing and IT, and invest where the cash will return most yield.

    Supply chains. Shorter as BB says. And more honest. This daft EU idea of 'labelled with member state of last provenance', exposed as the sham(bles) it is with the Irish pork fiasco, must go. 

    Labour. We have a third generation of  people who have never worked at all in this country. Grandfathers, whose offspring have now produced kids of their own - none of them done a days' work at all. And have no intention of so doing. Cheap eastern European labour is not so cheap, if the benefits paid to such families are added to their wages. This country is paying twice over and it cannot go on.

    Wildlife. Respected and valued. But not reverred to the anthropomorphic  lengths it is now. And an absolute no-no to reintroducing elk, bear, beaver and lord knows what else into the UK.  (Although I understand wild boar are a bit partial to baby badgers.....)

    Red tape. / Farm inspections. Can't afford. Never could. If we are compete on a world stage, then non-jobs which clutter the balance sheet, adding cost but little value have to go. Products will stand or fall on their own merit, with market prices to reflect quality..

    Defra. No comment. Animal Health returned to (experienced, non-political ) veterinary hands, and out of minority lobby groups' influence.

    Energy costs. We are heading for power shortages in the next couple of years because of politicians shilly shallying around with renewables, (EU regs)while fast approaching the day when our own aged power stations face decommissioning. To rely on France and Russia for power, is not a happy or secure position to be in.

    GM. A stunning technology - still developing a need. Which will not 'feed the world'.

    Animal Rights. Some have too many, meaning there are not enough left for the rest of us. Ecology is a delicate balance - a point some vociforous lobby groups have yet to appreciate.. Welfare is improved if that balance is maintained.

    Global markets. Fast becoming short of main commodities. The driver being population growth v. water supply, combined with pressure from bio fuels. and emerging diseases. BTV has decimated the herds and flocks of Europe, not killing too many, but economically making them unviable. The ravages of TB, running unchecked in this country and Ireland, takes not only reactor cattle, but the calves they are carrying + at least one lactation in a dairy animal, and the potential for several more. Blue ear in China's pigs and FMD in S. America are other problems on a big scale.

     The following snip is from a financial paper (MoneyWeek)  today looking at supplies of milk/meat/corn in a global marketplace:

    Dairy farmers are a dying breed. Of the 28,000 dairy farmers in Britain in 1995, more than half have quit the business, which has been on a knife-edge ever since the BSE outbreak. The doubling of feed costs over the past year is the last thing farmers needed. As one beef farmer at the Royal Show told The Sunday Times recently: "We must be mental cases to carry on, but we just keep smiling and holding the gun to our heads".
        
    It's the same story in America. More than 80% of US beef is corn fed. If you own a cattle feed lot, and feed costs are rocketing, you only have two ways to go. You can feed up fewer cattle and slaughter the others, or feed less to each cow and get a lower price for it (because it will weigh less). Either way, you’ve got less meat hitting the market.

    Throw into the mix the fact that there is now good money to be made from growing crops, either for food or ethanol. This has seen many farmers switch from raising livestock.

    • Recession or not, China must have more pork. Pork is so woven into the fabric of China that the government even has a central reserve of it. Since 1980, per-capita pork consumption in China has nearly tripled. The price of pork has jumped more than 50% in one year, yet the butcher shops remain packed.
         
      The Chinese eat more pork than the rest of the world combined. The country consumes seven times as much as the number two consumer, the United States.
         
      And yet the country has endured months of skyrocketing pork prices following the blue ear virus – which decimated the country's pig population in 2007. Domestic pork prices have almost doubled since last summer because of rising costs and shrinking supplies. To get the meat it needs, China will need to import more than ever before in 2009.
    • The ‘recession meat’ that’s set to boom. Poultry farming is far less energy intensive than beef and cattle farming, so farmers don't face the same intense pressures to lift prices as pork or beef farmers. Heading into a recession, that gives chicken producers a serious advantage. The last time there was such a dramatic surge in grain prices, back in the early 1970s, sales of chicken soared at the supermarket as pork and beef became too expensive for the average household.
         
      China goes through 24 billion chickens a year, compared with 600 million pigs. Morgan Stanley says this will have to rise from 35% of current meat consumption to 57%. That's a huge shift and suggests that poultry prices will rise, along with beef and pork prices.
    • A chronic shortage of ‘good dirt’. Livestock needs grain. But fertile soil in which to grow it is fast becoming scarcer by the year. In fact ‘good dirt’ is now more important to land values than oil or minerals in the ground.

      “Taking the long view, we are running out of dirt.”
      David R. Montgomery, geologist


          
      Before World War II, only Europe imported grain. South America, as recently as the 1930s, produced twice as much grain as North America. Today, only three major grain exporters remain: North America, Australia and New Zealand. That’s why faith in the global meat supply is at generational lows.

    I'm not sure I'd agree that battery chooks are less intensive than UK grass fed beef, but hey - the paper predicts profits returning to meat / corn production.

    ...................... and that's good for a Happy New Year. 

     

  • Sat, Jan 3 2009 19:32 In reply to

    • He his-self
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    • North East Scotland

    Re: Agricultural Predictions for 2009

    My predictions are as follows. (in no particular order) 1 SFP will be raided for more cash for "rural" projects that are nothing of the sort. The excuse will be the number of £ spent on actual farming will remain the same, it will be a lie as usual. 2 The banks will be recapitalised again, they still will not lend, even to sound businesses. This will be followed by drastic action to force cash into the economy (probably by the govt guaranteeing all business loans). 3 Large numbers of organic farmers will quit as the margin is now less than conventional. 4 Cuts to government spending start to cause real problems.(for the govt) Scotland has already had its budget cut as punishment for voting the wrong way. Civil servants strike repeatedly, all that happens is recruitment is frozen and voters grow even more resentful. 5 Supermarkets start to get very nervous indeed as the pound is now buying only 90 euro cents and imports cost them a fortune. 6 UK oil output falls significantly as oil drops to 25 dollars a barrel. Oil companies seek lower cost opportunities in Iraq. The fall in the pound means fuel prices rise in the UK. 7 Unemployment hits 3.5 million in the fastest rise ever. 8 Land Rover goes bust, I buy a new Range Rover V8 diesel from the receiver on Ebay for £15k (a man can dream) 9 Against all odds the weather is good. 10 Those with cash buy assets from bankrupt companies, fortunes are made from small investments by those with vision and confidence.
    Hey, this is Europe. We took it from nobody; we won it from the bare soil that the ice left. The bones of our ancestors, and the stones of their works, are everywhere. Our liberties were won in wars and revolutions so terrible that we do not fear our governors: they fear us. Our children giggle and eat ice-cream in the palaces of past rulers. We snap our fingers at kings. We laugh at popes. When we have built up tyrants, we have brought them down. And we have nuclear weapons. -Ken MacLeod
  • Sat, Jan 3 2009 20:29 In reply to

    Re: Agricultural Predictions for 2009

    Subsidies get more press with weak Euro. We will be branded as freeloaders. Public will not appreciate the public goods of environmental benefits and food security. Again. Govt will roll over and grant right to roam over everywhere.

    Supply chain. Much vaunted Openfield/DHL system will fall apart when DHL discover "rejections" caused by mills not wanting to take delivery of high priced milling wheat in June.

    Wildlife. We will be encouraged to let small mammals and insects eat our crops.

    Red tape/insepctions will cease as inspectors are all sacked.

    Scale. Small producers who fail to find a niche will end up whinging about the lack of help for family farms. Large scale producers will be forced to abandon the wheat/rape rotation when all good sprays go, nitrogen rules get tighter, and prices go lower.

    GM will finally be allowed for beet once the British press find out we are already eating it anyway.

    Animal rights. Government will introduce Bill of Animal Rights, thus establishing a costitution and court for animals, putting them above refugees and any Brtish citizen who is unfortunatly neither a gay/minority/old.

    Global markets will get a reaming and I will laugh out loud.

  • Sat, Jan 3 2009 20:34 In reply to

    Re: Agricultural Predictions for 2009

    its just a small point, but nz is a grain importer, not exporter.

    hhs, is it time to emigrate?

    15k might be generous for your rr.

    it is a scary prospect, 3.5m unemployed. and unemployable.

    under a collapsed pound, fert is going to be v expensive. i agree that a lot of organic farmers will drop out, but like me, they will not revert to high input farming. the best way will be semi organic, low cost production.

    like golden wednesday , sep ,92, livestock and grain prices will rocket, and tthe supermarkets will sqeal, and try and stop exports.

  • Sun, Jan 4 2009 7:55 In reply to

    • bluepaint
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    Re: Agricultural Predictions for 2009

    Beans and corn........Wink?

  • Sun, Jan 4 2009 8:30 In reply to

    Re: Agricultural Predictions for 2009

    I should just like to add that I saw a friend from New Zealand yesterday and he said they had sold all their Lambs and averaged $100 NZ a record he said. So Sainsbury's have a store full of expensive Lamb,lets see if they can rob good old Brit Farmers this year !!!

  • Sun, Jan 4 2009 9:55 In reply to

    ,Re: Agricultural Predictions for 2009,With falling house prices the practice of adding 400k to farm values as a reflection of the farmhouse is over, land values will also fall due to reduced borrowing levels and reduced agri returns. Good news for those o

    ,Re: Agricultural Predictions for 2009,With falling house prices the practice of adding 400k to farm values as a reflection of the farmhouse is over, land values will also fall due to reduced borrowing levels and reduced agri returns. Good news for those of us with vision and youth! ,, Post
  • Sun, Jan 4 2009 11:13 In reply to

    • He his-self
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    • Joined on Sun, May 22 2005
    • North East Scotland

    Re: ,Re: Agricultural Predictions for 2009,With falling house prices the practice of adding 400k to farm values as a reflection of the farmhouse is over, land values will also fall due to reduced borrowing levels and reduced agri returns. Good news for tho

    hhs, is it time to emigrate? I know all about Canada (the brother farms there and we have strong links to Continental Europe) so no its time to expand here. We are in a strong position to look for things at handy money. First on the list is a new combine, the Axial has gone to export, the weak pound has its advantages. We will pick one up in August after harvest is over in England, always the best time to buy. (maybe a Lexion maybe a Topliner) Don't expect cheap farms I will be after all I can get at these interest rates.
    Hey, this is Europe. We took it from nobody; we won it from the bare soil that the ice left. The bones of our ancestors, and the stones of their works, are everywhere. Our liberties were won in wars and revolutions so terrible that we do not fear our governors: they fear us. Our children giggle and eat ice-cream in the palaces of past rulers. We snap our fingers at kings. We laugh at popes. When we have built up tyrants, we have brought them down. And we have nuclear weapons. -Ken MacLeod
  • Mon, Jan 5 2009 8:53 In reply to

    Re: Agricultural Predictions for 2009

    I can't help but think that bluetongue is going to remerge as major problem. I think we got away with things lightly this year.

    FWiSpace caretaker. Drop me an email if you've got any questions or problems with the site.
  • Mon, Jan 5 2009 18:20 In reply to

    • Darling
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    • Joined on Sun, May 22 2005
    • The Giant Pumpkin Patch

    Re: Agricultural Predictions for 2009

     

    The milk price will drop again!..................Wow! Seems I really do possess mystic powers....... or is it my eternal attachment to the 'bleed'n obvious theory.

  • Mon, Jan 5 2009 20:51 In reply to

    Re: Agricultural Predictions for 2009

     

    Peter Wells:

    What are readers predictions for farming in 2009 ?

     

    the sun will shine on the day the RPA inspectors call to check all those ear tags, and rain for the week after, on the hay you wanted to bale.

    Still, they, with their master are on this earth to 'Save the World'. 

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