5:20pm Sunday 29th August 2010
The need to maintain productive agriculture at home was emphasised at the Pembrokeshire Show.
Following the temporary export ban on grain in Russia, chairman of NFU Cymru’s Combinable Crops and Horticulture working group, Perkin Evans, said wheat prices have shot up by 70% since June, rising 11% on one day alone.
Mr Evans, an arable farmer from Solva, added: “The announcement in Russia comes after the worst drought in more than 100 years which has devastated crops both there and in the Ukraine, and heavy rain is being blamed for wiping out the wheat crop in Canada.
“It’s impossible to speculate on the impact this dramatic market movement will have.
“But what this does serve to show is how important it is to maintain and develop our own productive capacity in grain, faced with unpredictable supply from overseas.”
NFU Cymru deputy president, Stephen James, who farms near Gelli, said stable production in the EU is relevant to global food security.
“These recent events should be taken into consideration by the European Commission as it prepares for reform of the Common Agricultural Policy post 2013,” Mr James added.
“Recent global events, resulting in extreme market movements, underline the importance of a strong European agricultural policy that has food production and food security both at home and abroad as its core priority.”
While potentially good news for Welsh arable farmers, the hike in wheat prices on world markets could have a negative impact for milk producers in west Wales, as they may lead to a rise in animal feed prices.
Mike McNamara, NFU Cymru Pembrokeshire county chairman, said: “Feed costs on average represent around 25% of total milk production costs therefore any increase in concentrate prices as a result of the poor global grain harvest will undoubtedly result in increased costs for dairy farmers in west Wales.
“To ensure the sustainability of milk production in one of the most important milk fields in the UK it is essential that any cost increase is passed up the supply chain, unless this happens we will continue to see dairy farmers deciding to call it a day.
“Our milk buyers must pay a price that truly reflects the cost of producing milk to the highest health, welfare and environmental standards rather than simply paying what they feel they can get away with which appears very much to be their current attitude.”
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