Conversion effort will pay

1 February 2002




Conversion effort will pay

Taking the small step from

low input to organic

farming could secure the

future of livestock farms,

believes one convert. But it

will take some effort, as

Robert Davies reports

ONE of the UKs biggest organic livestock producers says new management skills and good marketing are key to surviving the inevitable squeeze on organic market premiums.

Lord Newboroughs 950ha (2346-acre) Rhug Estate at Corwen in Denbighshire became fully organic in October 2000. Because the land had been managed on a low-input, low-output system for many years, conversion seemed a relatively small step.

"Other influencing factors were: The financial incentives of Organic Aid Scheme, the thought of where conventional farming might be in 10 years time, continuing food scares, and growing consumer demand," says Lord Newborough.

Going organic was not, and in his view never should be, a last-ditch solution to take to a bank manager before he pulled the plug. He and his farm manager Gareth Jones visited many established producers before making the move and were prepared to embrace the management skills required for success.

But when they looked at the market, they saw that simply labelling products organic would not be enough to secure a profitable future as more producers converted. Quality must be given a high priority, so money was invested in establishing a 100-head Aberdeen Angus suckler herd.

These replaced cattle previously run on contract to provide balanced grazing. Until the first Limousin cross calves came on stream organic store cattle were bought in and some will probably be purchased in future.

The estate also had to build a 85m x 36m (285ft x 120ft) sheep shed because cattle were housed in the available buildings.

When it came to marketing, Lord Newborough turned to Aberystwyth based Livestock Marketing, the procurement company run by Philip Morgan. Now about 70% of finished lambs and most cattle are sold to the Waitrose supermarket chain.

He is unstinting in his praise for the relationship the retailer has with its suppliers. "We have regular visits from the companys buyers and carcass classification information is received by the end of the day stock is killed. This is a valuable management aid."

Premium paying markets must also be found for animals which do not meet Waitrose specifications. Meat is already offered on a web-site and there are plans to selling organic meat through estate owned mobile catering outlets. Eventually, a farm shop may be set up.

"Organic premiums will reduce as more farms complete conversion, but this will increase demand by making organic products more affordable. However, to maintain profitability, we will need to add value in every possible way."

Lord Newborough remains confident of future success. He believes that political pressure to farm more extensively will increase and consumers will become more conscious of the way food is produced.

Converting to organic has put the estate ahead of the game, he says. The books show profitability is higher than it would be under conventional management.

"There is nothing frightening about farming organically. It does involve a higher degree of skill, but the satisfaction is just reward. Going organic has made farming much more interesting for me.

"Remember that while it can take a long time to convert, it takes just five minutes to return to conventional farming."

&#8226 Premium price needed.

&#8226 Suits low input units.

&#8226 Increased profits.

Lord Newborough (right) and Gareth Jones believe Rhug Estates sheep and beef enterprises have a better future now the farm is organic.


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