PEMBROKESHIRE sheep producers with shares in a company set up to strengthen the market for British lamb are being urged to use their shareholder votes to secure continuing farmer control of the business.

Farmers First slaughters about 5% of UK finished lamb and some of this is sourced from Pembrokeshire.

The company was established in the late 1990s when thousands of farmers donated money to set up the Farmers Ferry, which exported sheep to continental Europe. Around 2,700 farmers remain shareholders of the company.

The farmer-run ferry is credited with putting a floor in the market for lamb, which had seen prices slump at a time when mainstream ferry operators refused to export livestock.

The company slaughters 12,000 lambs per week, buying animals direct from farms and from livestock markets.

The company is due to hold its annual general meeting this month but Abergavenny-based chairman and farmer-founder Terry Bayliss worries that the company’s future hangs in the balance because a small number of non-farming shareholders could be elected to the board.

He said it was important that the business remained in farmers’ hands. “We pursue viable markets for UK lamb – particularly in continental Europe,’’ he said.

“By generating additional demand in the marketplace, we create more competition among buyers of UK finished lambs, thereby supporting farmgate prices against further erosion by our global rivals.”

Allowing a small group of minority non-farming shareholders on to the board would not be in the interests of the company or its farmer shareholders, insisted Mr Bayliss.

Notice of the company’s AGM on May 16th was sent to shareholders last week. “It is essential that shareholders exercise their right to vote – and if they can’t attend the AGM itself, post their proxy form as soon as possible,’’ said Mr Bayliss.