TALKING POINT
TALKING POINT
DOES this government want UK agriculture? Do consumers want the quality and standards of home-produced food rather than imports, bought in on price, to possibly questionable standards? Will there be a UK food producing industry in future?
I believe that the answer to all the above questions is Yes. Despite the problems, which affect all areas of agriculture and horticulture, I believe there is a prosperous future.
The current pressures will probably continue. The fundamental change that has occurred over the past 10 years is that we have moved from a sellers market to a buyers market. Many buyers are big, have specific requirements, and access to world markets.
Large catering companies need consistent supplies of beef of a consistent quality and at a consistent, known price. Many deal with Australia or Argentina because they cannot get the service they require here. Simply having the best product is no longer enough; we have to build the structure, which enables us to service the people who should be our customers, our home market.
The market now favours those who can identify what the market wants, and provide it, against those who simply produce and hope to sell.
GATT commitments, which are to be extended in the WTO talks, already hit our ability to export with subsidies. Also CAP support systems, such as HLCA payments are being changed from headage to an area basis. Arable crops and set-aside are moving to a common level of payment. The Rural Development Regulation, though financially small indicates the EUs intention of moving funding away from commodities. Recent news about modulation emphasises that change.
Also Europe will expand eastwards to include former communist countries.
So with the horrendous state of farm income, the weak euro, the market pressures and CAP, how do I see a future for farmers?
We have a good home market and sit on the edge of the largest trading block in the world.
We have a wonderful climate for growing a range of important crops. We have fast developing technology and technical expertise in growing and processing. And we have a public who are sympathetic to an industry which they see as producing safe food delivering environmental and social objectives.
Taxpayers question the wisdom of paying money to put grain or beef into store. There is however every indication that they are prepared to support us in achieving environmental and social goals such as ESA payments and countryside stewardship schemes.
But what really gives me faith is the fact that farmers are acknowledging that things have changed dramatically and, to survive, let alone prosper, they have to change too.
Businesses are looking hard at their costs and returns and at market requirements. I believe that we have the opportunity to build a long lasting and competitive industry. An industry which not only plays its part in meeting food production needs, but also the environmental and social expectations made of it.
Europe must play its part by developing policies and support to enable us to compete in these more dynamic markets.
The UK government must use every opportunity to help UK agriculture to survive, develop and compete.
The NFU must develop political and commercial policies to ensure a long term prosperous future for UK agriculture and horticulture. And we must all look hard at our own business, develop our strengths. We must grab the changes to develop a dynamic, competitive, sustainable industry.
There is a prosperous
future for UK
agriculture…but
producers must be
prepared to change
and adapt,
says Tony Pexton