The FWi Business Blog

Don't risk lamb penalty in choosy export market

2012-02-08T14:27:48Z

Holding onto lambs for too long in pursuit of rising spring prices and extra weight could carry a greater risk than ever this season, warns EBLEX. Exchange rate volatility is likely to make export lamb buyers more cautious and more choosy, making the right weight and finish crucial for premiums.

Although export markets have a wide range of specifications, market options for lamb carcases drop markedly at weights of more than 21 kg and classifications beyond 3L for fat, says EBLEX.

Most of the weight gain in heavier lambs will be in fat, which requires more energy to put on than muscle and so increases costs as well as risk, especially when finishing margins are so tight.

The risk of producing overfat animals is greater with lambs than in cattle or pigs, so handle at least every fortnight and then every week as they approach market quality.
Marking and then weighing representative groups every seven to 7 to 14 days provides a useful extra check on progress.

Apprentices can boost your business

2012-02-08T14:13:03Z

More farmers are needed to take on the growing number of apprentices who want to work and learn on UK farms. From 6 to 10 February is National Apprenticeship Week which aims to raise awareness of the opportunities for both employer and apprentice.

Given the widespread need to recruit more young people into farming careers, this route must be worth considering but many don’t know where to start. The best place is LANTRA’s website, which has clear and useful information about what’s involved and links to http://www.apprenticeships.org.uk.

There is support for both parties through local colleges and local LANTRA groups, while the training element is Government funded. Apprentices aged between 16 and 18 have a minimum wage rate of £2.60 an hour but many employers pay more, says LANTRA.

Eighty percent of those who employ apprentices think they make their workplace more productive and an even higher percentage think apprenticeships lead to a more motivated and satisfied workforce.

Price increase for goat’s milk suppliers

2012-02-07T14:00:30Z

Producers of goat’s milk supplying Delamere Dairy have received a 1p/litre price increase, effective from January.

The increase applied to nine farms supplying around 7m litres of milk a year and took the price to 53.5p/litre for those with a level production profile and who met the required milk hygiene standards.

“With the number of commercial goat herds in the UK still numbering less than 50, encouraging sustainable and well invested milk herds remains a priority for the company,” Delamere Dairy managing director Ed Salt said.

Veal is back on the menu thanks to Countryfile

2012-02-07T10:53:44Z

Veal was a best-seller at Waitrose at the end of January after a Countryfile report.

The BBC television programme featured veal on 22 January and since then sales have rocketed by 18%, showing how easily consumer behaviour can be influenced by media coverage.

Waitrose sells more than half of all veal sold in UK supermarkets. It has sold British veal for nearly 20 years and insists all its veal is from calves reared on straw in open housing, and fed a diet of milk and cereal.

Frontier buys Kent agronomy company

2012-02-06T13:48:02Z

Frontier has bought Kent-based specialist agronomy business The Agronomy Partnership (TAP).

The UK’s largest crop input and marketing company has added several agronomy businesses to its stable over the last two years and this move will mean it now has 97 agronomists.

TAP will continue to be based in Wrotham, will keep the TAP name and operate as usual. Martin Dear, director, said this decision would secure funding for future growth and technology investment for customers.

Welsh woodland grant scheme proves popular

2012-02-02T09:41:20Z

Welsh farmers can receive up to £9,000/ha over 15 years in woodland planting grants.

The Glastir Woodland Creation Grant is available across Wales with a minimum area of 0.25ha. Establishment grants of up to £4,500/ha are available along with a fencing grant of £3.15/m and the Woodland Creation Premium of up to £300/ha a year for 15 years.

A third of the 117 schemes planned so far have been approved by Forestry Commission Wales with the number of trees planted varying from 400 to 10,000.

In addition to providing timber and fuel, woodland can create shelter for crops, stock or buildings. It can also prevent run-off and reduce soil erosion whilst enhancing wildlife and improving shooting income potential.

Quick remedy for AIA headache

2012-01-31T17:08:50Z

Cumbria based accountant Dodd & Co has come up with a brilliant tool to help businesses work out how much Annual Investment Allowance they are entitled to.

Most farmers know that the AIA drops from £100,000 a year to £25,000 from April 2012.
However, working out just how much AIA you have available is complicated if your accounting year end does not coincide with the tax year.

The Dodd & Co calculator will do this for you in seconds - all it needs to know is whether you trade as a company or otherwise and what your year end is. It really couldn’t be simpler.

Higher beer and malt consumption

2012-01-27T09:24:06Z

Global beer consumption topped 182.69m kilolitres in 2010, a rise of 2.4% on the previous year, according to Japanese brewer Kirin Holdings.

It sounds even more impressive when put into English - it works out at 329bn pints - or 47 pints a year for every man, woman and child on the planet. Little wonder then that barley supplies are so tight, so to speak.

It’s good news for UK producers. Between July and November, DEFRA reckons brewers, distillers and maltsters used almost 731,000t of barley, 6% higher than the previous year. And malting barley prices remain firm, up around €15/t on September levels and about €73/t above feed barley, reflecting concern over EU supplies this season.

Meanwhile, the latest USDA figures show world barley trade is set to rise by 0.2m tonnes to 16.32m tonnes in 2011/12.

Food and farming insolvencies rise in 2011

2012-01-27T09:16:44Z

Business insolvencies in farming and food production and retailing rose significantly in 2011 according to an Experian report. A total of 107 agriculture, forestry and fishing businesses became insolvent in 2011, a 9.2% increase on 2010.

The importance of knowing your customer becomes increasingly apparent in food manufacturing with an 18.5% increase to 109 insolvencies in this sector. Food retailing also suffered a 7.7% rise with 196 insolvencies, well above the average of 6.3% across all sectors.

The most improved industry was spirits wine and tobacco with only one insolvency throughout the industry and a 66% decrease on the previous year.

Wynnstay posts record results

2012-01-25T14:56:35Z

Agricultural supply and specialist retail business Wynnstay Group has revealed its strongest ever set of annual results for the year ending 31 October 2011.

The group has achieved a 42% rise in turnover to £346.18m, driven by increased volumes and contributions from two recent acquisitions - Yorkshire-based Woodheads Seeds in May 2010 and Shropshire’s Wrekin Grain in May 2011. Pre-tax profits increased from £5.88m in 2010 to £6.85 in 2011.

The former co-operative based in Llansantffraid, Mid-Wales, is still farmer controlled with 50% of the company’s 3,804 shareholders being farmers and the remainder outside investors and staff.

Warning on bogus tax refund emails

2012-01-24T15:56:04Z

HMRC is once again warning farmers to be vigilant against bogus emails telling taxpayers that they are due a tax refund.

The emails are the latest in a series of scams which encourage people to hand over bank details and then have money taken illegally from their accounts.

Rob Hitch, partner at Cumbria based accountant Dodd & Co, advises clients not to open the emails or click any links.

“HMRC will rarely contact you by email. If you’re at all concerned visit http://www.hmrc.gov.uk/security/index.htm to see if the email you have received is listed.”

Any suspicious emails should be forwarded to phishing@hmrc.gsi.gov.uk and then deleted.

Red meat potential is there but so are challenges

2012-01-19T22:12:29Z

“You can win ... you can grow … you can be one of the food industry’s great success stories,” was the positive message from Joanne Denney-Finch to producers at Quality Meat Scotland’s conference this week.

IGD’s research showed that farmers were viewed as hardworking, down to earth, professional and vital to the future, said chief executive Ms Denny-Finch.

“I find farmers are usually very pleasantly surprised to discover just how staunchly they’re supported by the public!”

But shoppers hunting harder for deals create complications for retailers and their suppliers, she warned. “Demand is going up and down in waves … sales are harder to predict and profit margins are regularly squeezed.

“Red meat has been relatively less affected and you’ve been spared some of these problems although you could lose out on sales. So if not through price cutting promotions … you will need to keep finding other ways to grab attention and convince shoppers of the value you offer.”

Pick up bright ideas and much more at farm attractions event

2012-01-19T22:07:58Z

Looking to set up a farm park? Or pull more visitors into an existing attraction? Then a visit to the 2012 National Farm Attractions Network conference and trade exhibition will help you keep abreast of the latest developments and pick up some top tips to help your project flourish.

For the first time the conference will be over two days including visits to well established farm attractions - White Post Farm Centre, Nottingham, and Sacrewell Farm and Countryside Centre, Peterborough.

Debate the state of the industry and look at new ways to improve catering, customer service and season ticket sales on the second day. The conference takes place at Drayton Manor Theme Park, Staffordshire on 7 and 8 February. To book a place call 01536 513397 or email info@farmattractions.net.

Lamb’s share of retail price grows but beef and pork struggle

2012-01-19T22:01:41Z

Sheep producers received a bigger share of the retail price for lamb in December 2011, but beef and pig farmers saw little change, according to AHDB’s latest UK Market Survey.

Strong export demand and tight supplies saw the average deadweight ex-farm price for lamb increase by 42p/kg in December compared with the month earlier. Over the same period the retail price declined slightly, so producers received almost 60% of the final retail price, up 6% on the month.

Overall during 2011 producers received 59% of the retail price, compared with 55% in 2010.

Beef producers received on average 54% of the final retail price during December, 1% down on the month, but 5% higher than December 2010. Pig producers saw a smaller improvement on the year (up 2%) and still receive a much lower share. The average ex-farm deadweight pig price equated to just 39% of the retail value in December.

Bigger wool cheques are in sight for 2011 clip

2012-01-19T21:48:50Z

Wool cheques from the 2011 clip are expected to be bigger than last year’s despite a slight reduction in prices at recent sales. With more than half the clip sold, the average wool price achieved at auction is 45p/kg above 2010 prices, said British Wool Marketing Board chairman Malcolm Corbett.

“Nothing is yet settled - a lot of British wool goes into carpets and manufacturers are having a tough time, and we could see a slight correction to prices before the season is finished. But we expect values will be better than last year, which was a 25-year high. Farmers should receive an average of 30p/kg more for their wool.”

Producers were paid an average of 102p/kg in 2010, double the 2009 level and three times more than in 2008.