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21 - July - 2008NFU CYMRU PRESIDENTS MESSAGE FOR THE ROYAL WELSH SHOW

Speaking on the eve of the 2008 Royal Welsh Show, Dai Davies, President of NFU Cymru, puts forward the main challenges currently facing Welsh farmers.

“NFU Cymru is celebrating its centenary this year and although I’m not one for looking back generally I thought perhaps this year was an exception.  While preparing this Royal Welsh Show message I looked back at what the ‘hot topics’ were at last year’s show.

Bovine Tuberculosis was high on the rural agenda this time last year and Shambo the bullock catapulted the issue into the media limelight. At last year’s Royal Welsh Show we had had the commitment from the ‘One Wales Government’ to an eradication strategy and NFU Cymru had prepared written evidence for the Rural Development Sub-Cttee and we were preparing oral evidence to give them during the show.

One year on and of course this is still very much a ‘hot topic’.  I’ve no doubt that the evidence given last year, together with all the scientific evidence, were contributory factors in the Minister for Rural Affairs’ courageous decision to adopt a holistic approach to eradication of Bovine TB in both cattle and wildlife in Wales.

I compare this to the Secretary of State, Hilary Benn’s, complete abrogation of responsibility and dereliction of duty in England where he seems to think that a strategy of ignoring the problem will stop the spiralling incidence of disease.  Experience has shown that it definitely will not.  No-one and nothing is served by such short sightedness.

Another issue I raised at last year’s Royal Welsh Show was the St Athen defence training academy and the potential major contracts for food suppliers to which will be the largest restaurant in Europe.  My challenge to the Assembly at the show last year was to grasp this opportunity for the good of Wales and to help enable us to build the capacity to take advantage of this golden opportunity.  What has happened since – absolutely nothing!  My plea, once again, to the Assembly this year is to do some work on food hubs before it’s too late. 

Looking at the issues currently facing farmers, all the talk at the moment is of the global demand for food outstripping supply.  How the wheel turns!  There is no question that, as farmers, we can increase production and in so doing continue to respect the environment but it has to be profitable to do so.  We have witnessed an explosion of input prices and in the costs which central Government appears determined to dump on us.  This, in combination with cuts in producer prices, is sapping the confidence of livestock farmers in Wales who have few alternatives.  We need a combination of more sustainable returns from the supply chain together with a reversal of the upward spiral of costs.

Talking of costs – NFU Cymru has been attending meetings of the UK consultative forum on Cost and Responsibility sharing for animal health, which, quite frankly, has been nothing but a talking shop with DEFRA solely interested in cutting its financial liability whilst offering a thinly veiled sweetner of responsibility sharing.  The decision to finish this group saved us from walking away from it. 

NFU Cymru has stressed all along that affordability has to sit at the heart of the consideration and this has been recognised by the Welsh Assembly in its consultation document, but how can there be informed debate and constructive dialogue when there is a persistent refusal on the part of DEFRA to provide financial details to the Assembly and to the industry in Wales on what budget streams are involved and what the funding split to Wales might be.  Also, how, without any commitment from Government, can we be sure that we are not asking more of, and thus disadvantaging, the Welsh livestock industry, since EU requirements have yet to emerge?

Finally on costs, I recently met with the Chairman of the Food Standards Agency (FSA) and the Meat Hygiene Service (MHS).  As a result of that meeting I have to say I am very worried about the MHS’ determination to recover costs from the abattoir sector and how, this again, will be past down the line to the livestock sectors.  We are already looking at a 12% increase in charges from April 2009 but there has been a remarkable lack of transparency in what we can expect in subsequent years with a further increase of 15% being talked about.  This is set against a reduction in subsidy for small abattoirs and has the potential to compromise the local food strategy that both ourselves and the Assembly are keen to develop.  We know there are also moves by DEFRA to foist the costs of what we regard as public health matters in terms of Specific Risk Material (SRM) charges onto the industry and this could represent an additional 5% on top of MHS’ 12% increase. 

Market returns are simply not sufficient to offset spiralling input costs and this unremitting burden of additional costs.