Government figures show the average UK gate price for milk was 36.48 pence per litre (ppl) in June, down 16% on the same month last year. Meanwhile, the current cost of production is estimated to be between 40ppl and 45ppl, making it unsustainable for many dairy farmers.

RABDF chairman Di Wastenage said producers are caught in the crossfire, with little let up forecast in the short-medium term.

“Our dairy farmers are facing enormous financial pressures,” she remarked. “They are caught in the crossfire with farm gate milk prices remaining low, while farm input costs are stubbornly high and high retail prices impact consumer demand too.”

Mrs Wastenage added UK processors are also grappling with high energy and labour costs, which is reflected in the prices. Moreover, she explained the reason for the higher retail price of certain dairy products such as cheese is manufacturers using higher cost milk from earlier this year.

As for the next six months, she said global markets leave little scope for optimism for UK dairy farmers.

“The downturn in demand for whole milk powder (WMP) from China and the forward forecasting from Fonterra suggest this is going to become an uncomfortable year. Sadly, for many, this may be financially unsustainable,” she warned.

“The UK needs a dairy industry from the farmgate to the supermarket shelf to operate efficiently and profitably for all sectors along the supply chain. We must ensure this happens and that the value is shared with all parties,” Mrs Wastenage concluded.

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It is hoped the move will kick-start regular trade in ovine genetics between the UK and the US, allowing exporters to meet strong demand from customers across the pond who are eager to source direct from Britain.

The shipment, valued at around £400,000, follows the enacting of US legislation in 2021 that lifted a 33-year embargo on lamb and ovine embryos from countries previously affected by BSE (bovine spongiform encephalopathy or mad cow disease).

Using imported UK embryos will allow US producers to gain full pedigree status for a breed within one generation, while stocks bred with imported semen may take 10 to 15 years to reach purebred level grading.

UK embryo genetics will also benefit popular US commercial meat-producing breeds like the Suffolk.

The shipment was a culmination of collaborative efforts between the UK sheep meat industry, the UK Export Certificate Partnership (UKECP), the government and AHDB.

Welcoming the news, Phil Stocker, chief executive of the National Sheep Association (NSA), said: “This is great news for the sheep industry, further enhancing our reputation on the global stage.

“It is the result of hard work put in by the industry, Government and AHDB, building on the wider export deal with the US which is starting to pay dividends.”

Dr Phil Hadley, AHDB trade development director, said the shipment of high-value sheep genetics to the US represents a major milestone for the British sheep sector.

“In addition to the export of sheep meat from the UK, we hope this will be the start of another valuable trading relationship for our sheep producers and the wider UK industry,” he remarked.

Commenting on the news, food and farming minister Mark Spencer said: “We are backing British farmers and opening up new markets for British goods around the world – those based on both our vast food heritage and also our cutting-edge science.

“British sheep producers are rightly celebrated as some of the best in the world and this shipment will give US producers access to our premium sheep genetics.”

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According to the latest government figures, the average farmgate price for a litre of milk dropped to 37.6p in May, a near 8% decrease compared to the same month last year, leaving many farmers with no choice but to abandon the sector.

To ensure primary producers are paid a fair price for their goods, farm vets from VetPartners are calling for a minimum farmgate price to be implemented for milk, other dairy products and meat.

The letter to MPs was written by Westpoint Farm Vets clinical director Jack Balkham and has also been issued by farm vets across the group.

VetPartners Farm Director Ian Cure is among the farm vets who have written to their MP voicing concerns about the future of dairy farming, saying the volatility in the sector is making it difficult for farmers to invest in their businesses.

“The five-year, rolling average farmgate price for milk as of May 2023 was 33.65ppl, and this has changed very little over the last six years. It is well documented that in recent times, costs across all sectors have increased with labour costs, fuel, equipment, rents and rates at an all-time high.

“This now means that the industry estimates the cost of production to be in the region of 40-45ppl. It is therefore clear that this is not sustainable, and something must be done to support British farming, and ensure food security for our country.”

He went on to highlight the recent fall in milk prices means that many farm businesses are struggling to survive, which in turn has a negative impact on the rural economy as a whole.

“We have already seen many farmers leave the sector for economic reasons. Food security for this island nation is paramount, and I believe we must take action now to prevent more farmers leaving the industry,” he stressed.

Dr Cure believes the government need not absorb all of the costs and there is much processors and supermarkets can do to unburden the dairy sector and mitigate the effect of market fluctuations.

“We must act now to support these farmers as they have supported and continue to support us by providing the market with some of the highest welfare and greatest quality produce in the world.

“Minimum milk pricing to the cost of production is the least we owe them and is vital to ensure the survival of these businesses and our country’s ongoing food security,” Dr Cure concluded.

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Held across four months using a blend of virtual and in-person sessions, the course is designed to equip applicants with specialist business knowledge to aid their career in the dairy industry.

A total of seven sessions will over a variety of topics such as understanding the milk market, business planning, succession planning, future opportunities, people management and tax and trading structures.

In addition, there will be a two-day finance course and a final two-day session on farm, both of which are delivered by The Andersons Centre partner Tony Evans.

“Having been involved in the course since its launch ten years ago I have not only seen how it has evolved but have witnessed first-hand the confidence and success it has brought to a huge amount of its cohorts,” Mr Evans said.

Josh Fincham, who now runs a 270-cow herd in Dorset on a 50:50 contract farming agreement, took part in the course in 2016 when he was herd manager for a 400-cow split block unit.

He said enrolling in the course gave him the confidence to set up and manage his own dairy business.

“Entrepreneurs in Dairying teaches you everything you need to know about running a business, such as accounts and people management, not only this but it taught me life lessons I didn’t even realise I needed to know.”

The scheme has continued to grow in popularity since its inception, and with over 20 people having already registered their interest for the upcoming course, anyone interested is encouraged to get in touch sooner rather than later to avoid disappointment.

The training programme also emphasises RABDF’s continued commitment to developing the next generation of dairy entrepreneurs, said the association’s managing director Matthew Knight.

“It’s great to see the course as popular as ever, with so many people still keen to enrol each year, the benefits and opportunities it has opened up to past cohorts speak volumes in terms of demonstrating its success, and it is an initiative we are proud to manage.”

Emily Collins, AHDB knowledge exchange manager, added: “AHDB is proud to support the programme which helps build knowledge and confidence in people looking to succeed in the dairy industry whether that’s as a dairy herd manager, a tenant or in a joint venture.

“We’ve received some fantastic feedback from previous attendees about how it has helped develop their careers and would encourage anyone thinking about joining this year to get their application in.”

The course starts in October and a full schedule of dates and topics will be released shortly. Forms are available to download at http://www.rabdf.co.uk and the course costs £490+VAT.

Applications must be submitted by 1 September, however spaces are expected to be filled before this date. There are also a handful of subsidised spaces available, and those interested should contact ambermckay@rabdf.co.uk for further information.

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From 11^th to 16^th July, red meat buyers from markets including Qatar, Kuwait, Philippines, the UAE, Canada, the US and Mexico headed to the UK to discover more about sustainable beef, lamb and pork production and examine potential new business opportunities.

The trade mission led by AHDB included visits to farms and processors and the chance to meet with farmers at the Great Yorkshire Show on 12^th July to find out more about high-quality meat production in the UK. A business match making event was also included in the programme where the visiting buyers met with leading UK meat export companies.

The visit follows the recent launch of AHDB’s new export strategy Beyond Borders which is aimed at increasing market access and export sales while encouraging and supporting more businesses to export.

Last year, the value of UK red meat exports hit record levels at £1.7 billion and global meat consumption is expected to grow by 1.8% from 2023 to 2024.

AHDB head of International Trade Development Jonathan Eckley said: “Exports is a key pillar in AHDB activity and we have listened to our levy payers telling us how much they value our export development work.

“This successful inward trade mission will help develop important relationships with buyers in key markets. There is a growing global appetite for our high-quality produce, and now is the time to help maximise the opportunities for UK beef, lamb and pork.

“It was our pleasure to welcome our international visitors to the Great Yorkshire Show where they had the chance to find out directly from producers themselves about our high-welfare, environmentally sustainable, traceable food production in the UK, enhancing their knowledge and the reputation of our agri-food products in overseas markets.”

Export development is one of AHDB’s key strategic objectives, working collaboratively with industry and government, to cultivate further opportunities for its red meat and dairy sectors.

Export opportunities for UK producers is detailed further in AHDB’s region-by-region analysis Prospects for UK agri-food exports, launched earlier this year, examining both the opportunities and challenges of trading in different parts of the world.

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With 72% of all meat produced in Britain destined for the EU, this upcoming change will affect the vast majority of livestock farmers in the UK.

The new requirement follows a change to EU animal health regulations mandating farms that produce animals or products of animal origin (POAO) for export to have regular veterinary visits.

To obtain a signed declaration, farmers must undergo an annual animal health check conducted by a qualified veterinarian. During the visit, the vet will be required to carry out a visual assessment to confirm the farm is free of notifiable diseases. This new procedure will replace the previous temporary requirement for a farmer declaration.

The health check should take place at least once in a 12-month period. If the visiting vet considers a need for a subsequent visit before the 12-month mark, this information will be communicated to farmers and clearly stated in the declaration.

Farmers who are part of an approved farm assurance scheme already meet the requirement for a veterinary visit. Currently approved schemes include: Red Tractor, Quality Meat Scotland (QMS), Farm Assured Welsh Livestock Beef and Lamb Scheme (FAWL) and Welsh Lamb and Beef Producers Ltd (WLBP).

Moreover, an annual health and welfare review carried out as part of the Animal Health and Welfare Pathway will also fulfil the requirements for obtaining a declaration. In this case, farmers will need to retain the receipt from the visit as evidence for the official vet to approve goods for export.

Digital solutions are currently being developed for transferring these new veterinary attestations through the supply chain and are being endorsed by various stakeholders, with more details to follow in due course.

Dr Phil Hadley, AHDB’s international trade development director, commented: “A large part of AHDB’s work concerns securing market access and international trade opportunities on behalf of levy payers, in partnership with the UK government and industry.

“The organisation’s role includes supporting farmers with their export health certification, and with UK meat exports continuing to climb we’re focussing on the future to identify new markets for our exporters, ensuring UK meat is enjoyed in more countries around the world.”

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More than 10 buyers from markets including Qatar, Kuwait, Philippines, the UAE, Canada, the US and Mexico will head to the UK from 11^th to 16^th July to discover more about sustainable beef, lamb and pork production and explore new trading opportunities.

As part of the programme organised by AHDB, buyers will visit farms and processors and meet with farmers at the Great Yorkshire Show on 12^th July to find out more about high quality production of beef, lamb and pork.

The visit follows the launch of AHDB’s new export strategy Beyond Borders, which is aimed at increasing market access and export sales while encouraging and supporting more businesses to export.

UK red meat exports hit record levels last year at £1.7 billion, and global meat consumption is expected to grow by 1.8% from 2023 to 2024.

Susana Morris, AHDB senior export manager for the Americas, said the trade mission is hoped to increase opportunities for red meat producers in the UK by developing new relationships with buyers in key markets.

“With a growing global appetite for our high-quality produce, now is the time to help maximise the opportunities for our levy payers,” she said.

“Attending the Great Yorkshire Show will provide our visitors with the chance to find out from farmers themselves about our high-welfare and environmentally sustainable food production in the UK, further enhancing the reputation of our agri-food products in overseas markets.”

Export development is one of AHDB’s key strategic objectives, and the organisation has been working collaboratively with industry and government to cultivate further opportunities for its red meat and dairy sectors.

Export opportunities for UK producers is detailed further in AHDB’s region-by-region analysis Prospects for UK agri-food exports, launched earlier this year, examining both the opportunities and challenges of trading in different parts of the world.

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Of the dairy farmers providing feedback, 87% said they had found it increasingly difficult to recruit and retain employees in the last five years, with 59% admitting they had considered exiting the industry due to the ongoing labour shortage. Whereas, sourcing labour was a worry to nearly all (92%) farmers in the group.

The data is in line with concerning figures released by the AHDB, showing the number of dairy producers fell by 4.8% in the past year to 7,500 as of April 2023 – with 380 producers leaving the industry. Falling milk prices, rising costs and labour pressures all contribute to the downward trend.

Many of the focus group had already made changes on their farm in response to labour shortages, with 21% reducing stock numbers and 13% cutting the number of milkings.

Commenting on the issue, RABDF Chairman Di Wastenage said: “The exodus of dairy farmers is a worrying trend, and sadly, a lack of labour has a big part to play in that.

“Many farmers are at a crossroads with declining support, and for them to plan and invest for a sustainable future, they must have confidence that both skilled and permanent labour will be available.”

The group also highlighted the need for foreign workers to fulfil positions on the short term due to a lack of interest in the industry among domestic workers. Almost half of producers are currently employing foreign workers on their farm, with 40% saying unsociable working hours were the main reasons for staff leaving.

From listening to dairy farmers, the RABDF concluded foreign labour is something the industry still needs in the short term. In their latest submission to the MAC Shortage Occupation List Review, which closed last week (25^th May), the association presented its latest findings.

Mrs Wastenage added: “We hope the MAC will listen to our concerns and include Dairy Technicians on their Shortage Occupation List (SOL).

“The government can further support this by reviewing the ‘blockers’ they have created to employ and retain staff, such as the lack of rural housing for farmers, especially within designated areas such as the AONB and National Parks.”

To rectify the situation without further delay, Mrs Wastenage said the industry must take the lead and create a strategy to help itself. As part of this initiative, the RABDF hosted a Labour Roundtable discussion at the House of Lords earlier this month.

“In the medium to long term, we must look at all the options to ensure a pipeline of employees enters the industry,” Mrs Wastenage stressed.

“This includes better education in schools, brand building, skills development, and attracting employees from outside the industry and diverse backgrounds. It also needs dairy farmers to take ownership of the issue on their farms and provide the right environment to value and retain employees.”

Keen to maintain momentum following the Roundtable, the RABDF is now identifying the key players needed in a dairy labour stakeholder group and prioritising areas to work on.

For more information on dairy labour, visit rabdf.co.uk/labour 

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A total payout of £6.6 million was confirmed to British Wool members this year, with exact prices depending on grade and type of wool. Members will be receiving a personalised letter in mid-May detailing the total value of their 2022 wool with core grades achieving 30p/kg, the Blackface wool 20p/kg, Welsh Mountain wool 10p/kg and 8p/kg for Swaledale.

Meanwhile, fleeces from organic flocks will be receiving a premium of 70p/kg for core types and 20p/kg for the Welsh Mountain type.

Andrew Hogley, CEO of British Wool, said the prices are ‘frustrating’ and have been driven down by inflation and global pressures experienced in recent months, which had created ‘significant difficulties’ in the marketplace.

“As a farmers cooperative, the returns we offer our members are determined by the value we can achieve for the wool we sell on their behalf and the costs of bringing that wool to market,” Mr Hogley explained.

“There had been positive signs of recovery in the wool market after the devastating impact of the Covid pandemic, however the war in Ukraine and subsequent spike in energy prices reversed much of those improvements. High energy costs and consumer confidence had led to a very challenging environment for all raw material suppliers including wool.”

“The impact of high energy prices on the cost of processing wool has been enormous,” he added. “Commercial scouring tariffs have increased by 30% over the past 12 months. Increased haulage rates and diesel prices had also been a significant challenge to the business.”

Despite these difficulties, British Wool has achieved prices comparable to those in New Zealand and believes there is much to be optimistic about in the future.

“Our focus on the environmental and sustainability credentials of British wool is gaining traction. Over the past year the number of brands with verified British wool product ranges has increased to more than 100,” Mr Hogley pointed out.

“Increasingly, we are seeing manufacturers willing to pay a premium for traceable British wool and we have invested in our systems that give full traceability back to the farm.

“We encourage sheep farmers to continue supporting us as we continue to navigate these difficult times. We truly believe that with continued effort, determination, and innovation we can build a positive future for wool, but we all need to work together,” he concluded.

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Turnover across all classes through 2022 has again reached record figures, rising £27.5 million on the year to just over £2.1 billion. Significantly, with numbers remaining tight in various categories, these figures represent a dramatic rise in averages through the live sales ring.

“These turnover figures reflect not only the trend we have witnessed over recent years for producers returning to the live sales ring to market their stock, but also the fact that the auction system is placing those animals in front of multiple potential buyers,” says Chris Dodds, executive secretary of the Livestock Auctioneers’ Association (LAA).

Livestock markets provide an invaluable, competitive and transparent marketing outlet for producers, particularly noted during the challenges through the Covid-19 pandemic. Many marts reported vendors returning to the live sales system from direct supply chains over this period, while marts also welcomed new first-time customers.

In 2022 the livestock markets of England and Wales saw more than a quarter of a million more animals through their sale rings (254,000) than in 2019. Turnover in 2022 is more than half a billion pounds higher than in the corresponding pre-lockdown period in 2019, at a total increase just short of £556 million.

“These figures quantify the anecdotal evidence that vendors have not only been returning in numbers, but have also stayed with the marts, to get the true value for their livestock” adds Mr Dodds.

Total throughput figures of all classes of livestock through livestock markets 2022 (England and Wales)

Over 11 million animals passed through the livestock markets, including over one million cattle and more than 9.5 million sheep. A significant rise in calf numbers, up 12,000 to a total of 242,000, is a response to the market’s ability to ensure the right buyers are around the ring for the right stock. Not only does the auction system provide a marketplace for all classes, but it also offers the potential to get more for the better-quality animal.

Trends set fair

The trends also seem set fair, as has been demonstrated in the first few months of 2023, evident in all categories. While the hogget trade has been boosted most recently by Easter and the Ramadan festival, the cull cow trade continues to thrive across both the beef and dairy cow sectors. Averages in 2022 rose more than £180 per cow over 2021 figures, to £1,055.09.

Records have continued to be smashed across markets up into Spring 2023, as Sedgemoor Auction Centre auctioneer Robert Venner explains, “Looking at January and February alone this year, we saw a 5% increase on the year in barren cow numbers sold, at an increase of 27% in average value,” he says.

Store and prime cattle trade has also remained strong into 2023, providing vendors with the incentive to take advantage of the competitive nature of the live sales ring.

Bradley Towell, managing director at Frome Livestock Market says, “The returns being achieved in auction marts across the country make it extremely difficult to value store cattle on the farm without introducing competition.

“There is also the added benefit in an auction of having different customers for different weights and grades of cattle, which means individual buyers will bid more for what they want.

“Trade for prime beef is the highest it has ever been which is evident by the returns achieved in livestock marts here and across the country,” he adds.

Delivering the healthy competition to drive the trade, with buyers for all classes of livestock, the auction mart system is uniquely positioned to help vendors achieve a fair price for their stock, alongside providing access to advice and guidance on market demands.

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