Archive Article: 2002/01/18
Milk merger is good news for producers
The proposed merger between Zenith and The Milk Group makes sense.
As one company, it will have over 4000 members supplying about 20% of the GB milk market. That will help it to return a better milk price to members.
In the short term, transport can be rationalised and costs cut. There is also the potential for more significant gains to be made through processing, by investing, and borrowing against, members capital.
Unlike most dairy processors, extra returns generated by adding value will not be creamed off by non-farming shareholders.
For some producers, the move may require a leap of faith. But, by maintaining control, while employing top executives, farmers signing up with this new European-style co-op should find it a leap worth making.
Dont penalise EUsfarms for expansion
EU enlargement to the east is a worthy political aim. But, despite assurances from Brussels that it will create commercial opportunities, it carries considerable risks.
Those are exacerbated by plans to phase in direct income aids for farmers in the candidate countries from the day they join.
Brussels also wants to direct more money to rural development measures as part of this years mid-term review of Agenda 2000, in preparation for enlargement. That also risks cutting the amount of cash going into producers pockets.
No doubt the long-term security gains of an enlarged Europe will benefit society. So the cost should be met by society as a whole, not by penalising hard-pressed farmers.
Caring fertiliser use can win you cash
Responsible fertiliser use is in everyones interest. It protects the environment, farm profits and boosts public perception of farming. So, no matter how flawed the arguments for nitrate vulnerable zones, few would deny fertilisers need using with care.
To recognise and reward those who achieve top standards, FARMERS WEEKLY and Terra Fertilisers are staging the 2002 Nitram Fertiliser Award.
Over the past seven years, the competition has highlighted best practice. Could you be this years winner? Turn to p46 for your chance to win £2000.
Like it or not NVZs are here to stay
They make most farmers fume. But nitrate vulnerable zones will become a fact of rural life for all farmers in England and Wales.
After a decade of delays over implementing the EUs nitrate in water directive, the government is about to comply with its requirements.
Fortunately, NVZ rules generally reflect best economic and environmental practice, particularly in the arable sector, as our Fertiliser Special points out. After all, why apply manure to land unfit to receive it? But farmers need urgent assurance that the government will accept a fair share of the extra costs of meeting the directive.
Expansion not always answer to woes
When profit is low, it is easy to look to expansion for a solution. Could a few more sows or cows boost output?
Sometimes it pays off, but there comes a point where it is uneconomic to expand. Perhaps when selling a full lorry load of pigs each week, or when there is too much for one person to do.
Identifying that point requires a good business plan. Then if expansion doesnt add up, it is vital to look elsewhere for that extra income. Part-time work off the farm or an added-value enterprise could make all the difference.
In celebration of British breakfast
A good breakfast: Theres no better way to start your day.
So well done to everyone taking part in farmhouse breakfast week – an initiative to celebrate great regional breakfast produce.
As Farmlife explains, this is good news for farmers because it promises to boost meat and cereal consumption. It will also help consumers appreciate local foods and better understand farmings role in the food chain.
Our country boasts a vast array of healthy and delicious breakfasts. So whether its tasty Cumberland sausages, Lincolnshire plum bread, Scottish oakcakes or Welsh bacon, why not tuck in?