Category Archives: Food
For many years international agencies have promoted a school of thought that says it is cheaper to import food than to grow it within the country, comments Devinder Sharma (below, right).
In December he told Rediff.com’s Syed Firdaus Ashraf:
“Rural Gujarat has voted against the influential ruling BJP. During the 2014 elections, Prime Minister Narendra D Modi had promised that if elected his government would give 50% profit over the cost of production as recommended by the (M S) Swaminathan committee and rural India voted conclusively for the BJP – but farmers are still waiting for the promise to be delivered”.
“The Reserve Bank of India’s governor used to say that the biggest reforms would be when farmers are moved out from the villages into the cities, because cities are need of cheaper labour. Cheaper labour is required for infrastructure, real estate and highways. In other words, agriculture is being sacrificed to keep economic reforms alive”.
Farmers need a fair price: cost of production plus
An article by Lancashire farmer, Kathleen Calvert, issued as a press release by local business, Dugdale Nutrition, stressed:
“Maintaining viable dairy farms not only protects livelihoods of farming families and others directly involved, it also makes a major contribution to local economies and the future of businesses, jobs, and families in the locality”.
Ruth and Richard Burrows, Devonshire farmers, assembled suppliers representing 3000 others whose livelihoods depend on them and other farmers. A photograph was published (right, faded newsprint, The web of rural ruin, Richard Price, Daily Mail, 23.9.99) with notes giving the names and roles of the people pictured. Mrs Burrows said: “They are living proof of the importance of the spending power of the farmer and how enormously important agriculture is in terms of the entire economic structure around here. The rural communities of Britain tick over on a system of mutual dependency of which the farm forms the hub. If it goes to the wall, dozens of ancillary trades in both town and countryside suffer”. Read more here.
Farmers organise politically in UK
As talks are under way at Stormont, William Taylor, speaks for Northern Ireland Farm Groups, which represents several food production sectors – now including the National Beef Association – and is concerned about the future of 25,000 SME family farmer businesses.
A bill, written by Daniel Greenberg, a barrister who specialises in legislation and is Editor of OUP’s Statute Law Review, is to be taken forward.
It proposes that farmgate prices in NI return to farmers a minimum of the cost of production, plus a margin inflation linked, that would give 20,000+ new jobs and prosperity across the province in towns, cities and countryside alike.
Their proposals have been well-received by several parties and unions, and Claire Sugden from Coleraine, Independent (the Justice Minister in the former assembly) told the farm groups that ‘she was of a mind to take legislation on farm gate prices forward’.
Legislation on farmgate prices for Northern Ireland according to the Gosling Report, would return 10-20,000 jobs+, save Stormont £280million+ in welfare costs and bring prosperity back to Northern Ireland.
In both countries, as Sharma comments, “What farmers need is income, a profit over the cost of production. To keep food inflation in control, successive government have denied farmers their rightful income”.
Reuters reports that President Emmanuel Macron – during a meeting at Rungis international food market in Rungis, near Paris – has called for changes to France’s food chain on Wednesday to ensure that farmers, who have been hit by squeezed margins and a retail price war, are paid fairly.
Macron said that he supported a new type of contract, based on farmers’ production costs
In common with Farmers for Action (NI) which has joined a producer organization (Farm Groups) he is proposing a change in legislation – ‘a new type of contract, based on farmers’ production costs, which would require stronger producer organizations and a change in legislation’.
Prices are currently defined by buyers tempted to pressure prices, leaving many farmers unable to cover their costs.
The changes are part of a wide field-to-fork review promised by Macron during his presidential campaign as a third of farmers, an important constituency in French politics, earned a third of the net minimum wage.
Macron endorsed a proposal from the workshops to create a reversed contract starting from farmers, to food processors and to retailers. This would ensure a better spread of added value along the chain.
Just Food adds: “He promised to shake up the current “balance of power” between producers, food processing firms and retailers. A tougher line would be taken on low prices and discounting and a higher loss-leader threshold for retailers established, Macron underlined . . .
“Legislation will be prepared early next year reversing the current system of food pricing. In future, prices will be calculated on the basis of production costs instead of being imposed by retailers”.
Don’t take the UK’s 220,000 farming family businesses for granted
Government Minister Chris Grayling MP (transport) commented on the recent Andrew Marr Show that the UK’s farmers would simply produce more food to keep food prices down in the unlikely event that Brexit discussions result in a no deal situation. A press release responding to this statement has been received from Farmers For Action’s NI co-ordinator William Taylor.
Farmers are receiving receive farmgate prices equivalent to those paid 30 years ago
“The fact is that the UK government is at a crossroads with EU negotiations on Brexit and the UK’s farmers are also at a crossroads: whether Brexit succeeds or fails, they still face the food corporates in relation to poor farm gate prices . . .
“Since the second world war they have got super efficient and embraced new technology continuously and supplied the lions’ share of the food to feed the nation 24/7 to date, only now to receive farm gate prices equivalent to 30 years ago in many cases while corporate retailers, corporate wholesalers and to a lesser extent corporate processors fill their pockets.
“The Government now needs to treat farmgate prices equally as seriously as Brexit, as potential young farmers and their families to be, are not willing to enter an industry only to lose money and work 24/7 by intensively farming.
“The solution for the UK’s farmers, where the average age is now close to 60, if the UK government wants to maintain or increase current food production, is to introduce legislation across the staples on farm gate prices such as that being proposed in Northern Ireland (see The Gosling Report).
“To Government we say the choice – on an issue equally as serious as Brexit – is yours!”
“If this legislation is not introduced, food corporates will continue to force cheap food from our farmers at ever decreasing values leaving more of our farmers bankrupt or quitting the industry.
“For those remaining and wishing to continue farming the alternative would be to go to traditional or organic farming; in short, produce less, secure your farm by keeping off the intensive treadmill spiral of debt and receive a better price by producing less!”
Farmers For Action
56 Cashel Road, Macosquin, Coleraine, BT51 4NU
Tel. 028 703 43419 / 07909744624
At the moment, due to imports, this country’s food security ratios are high – see map:
But 28,000 farms in England went out of business (132,400 in 2005 to 104,200 in 2015, DEFRA), many due to farmgate prices below production costs.
Meanwhile the AHDB advisers inflicted on them thrive, advertising for Sector Strategy Directors to be paid £62,000 – £76,000 for working 35hrs per week
The farmer drawing attention to this – who works far longer than 35 hours for far less return – comments “How easy it is to spend someone else’s hard earned income. An independent organisation (independent of both commercial industry and of Government)??”
A government website explains that the Agriculture and Horticulture Development Board is a non-departmental public body funded by a compulsory levy on British farmers. growers and others in the supply chain.
It “has a role in the processes of national government and operates to a greater or lesser extent at arm’s length from ministers”.
AHDB advisers working half the hours at more than double the average farming income frequently offer sage advice: their mantra: “improve productivity”. The FT quotes reflections by Phil Bicknell, market intelligence director at the AHDB who sees only three options:
- The most desirable: securing a free-trade deal with the EU,
- The least: putting up protectionist barriers or
- opening up trade to low-cost competition from around the world.
Notably absent is any sustained concern about a fair price deal for food producers and the prudence of supplying the home market first before trading any surplus.
Between 2013 and 2015, according to figures from the House of Commons library, smaller producers left the industry and during that period, milk prices fell by about 30%.
The Gosling Report finds that for farmers in Northern Ireland the sale price for the majority of commodities they produce does not even cover the input costs; this applies equally to most other British farmers. Paul Gosling comments:
“Meanwhile, large processors, large corporate food wholesalers and corporate retailers continue to maintain their enormous unsustainable profits”.
Farmers in the rest of Britain in the same position should act with those in Northern Ireland. They require legislation similar to that submitted by Fairness for Farmers in Europe (an association of 30 farm organisations in Britain, Ireland and the EU) to the 2010/11 CAP review. This would state that farmers must be paid a minimum of the cost of production plus a margin inflation linked for their produce; if the ‘free’ market moves up the farmer will get the benefit, however, when it falls the legislation is there to provide the safety net limit of drop.
AHDB please note: as a matter of urgency with Brexit negotiations under way, all farm groups could campaign for legislation on just farmgate prices, stating that a minimum of the cost of production plus a margin inflation linked must be paid at the farmgate for all food produced in Britain.
Readers wishing to know more about NI Farms Groups’ campaign should contact:
56 Cashel Road, Macosquin, Coleraine, BT51 4NU
Tel. 028 703 43419 / 07909744624
Northern Ireland Farm Groups including Northern Ireland Agricultural Producers Association (NIAPA) and Farmers For Action (FFA) coming together on the issue of legislation on farm gate prices, released the following statement in August:
NI farm gate prices are by far the biggest issue for Northern Ireland farmers and the Northern Ireland economy, only followed by Brexit and the far from solved border issue for Ireland north and south.
Food Corporates and Co-op food processors face relentless farm gate price pressure actions continue to make the case for farm gate price legislation . . . It’s time for Stormont’s politicians to get back to work and prove they value Northern Ireland’s farming families and the top quality home grown food they produce, including their link to Northern Ireland’s prosperity. They must get back into Stormont and start processing the farm gate price legislation bill proposed by NI Farm Groups.
Every day Stormont doesn’t sit to act on this vital issue is costing Northern Ireland approximately £1million per day; this is made up of £280million inflation linked per annum on rural welfare support and jobs, according to the Gosling Report.
Farmers For Action have now issued a message to dairy farmers considering term contracts for a large or small portion of their milk, summarised here:
William Taylor, FFA NI co-ordinator, states that “Across the main news we now find that the large food corporates are seeking to Brexit-proof food prices – roughly translated Brexit-proof their profits – and hold off their competition. How can it be right for dairy farmers or any other farmers to sign contracts that are grossly under the cost of production and not inflation linked, merely to facilitate food corporate profit taking.” He continues:
“Co-ops are going out and taking the business from the large food retailers and food wholesalers on mainly the lowest price basis to eliminate competition, then come back to the farmer for their profit . . . This has to be wrong, in that it will never return sufficient money to the farmer members of any co-op.
“The job of a CEO of a dairy co-op is to employ good salesmen and implement a policy of selling a quality product time after time, build up a reputation for dependability and above all know when the market is saturated and when it is not, as is currently the case, and use this to advantage – always have a selling edge and always look for new outlets . . .
“Above all, in order to earn any credibility from their farmer member-owners, good co-ops should be able to sell milk above the price of bottled water and never be a bargain basement seller”.
Points to remember:
- any contracts being currently touted in Northern Ireland must be checked legally; sign nothing without good legal advice.
- remember, the true cost of production ‘without profit’ repeatedly coming back from Europe’s most efficient producers via European Milk Board is just over 40p/l.
William Taylor concluded, “Consider carefully before you sign your family into possible debt for the sake of food corporate and co-op profits with non-inflation linked under-the-cost-of-production contracts.
Legislation on farmgate prices across the staples is ultimately the answer and we are making progress!”
56 Cashel Road, Macosquin, Coleraine, BT51 4NU
Tel. 028 703 43419 / 07909744624
The full text of both messages will be emailed to anyone who would like to learn more – just ask using the comments mechanism.
Following our tenth entry: MP Andrew Gwynne, who successfully introduced the Debt Relief (Developing Countries) Act and worked long and hard to get justice for those who received contaminated blood through the NHS, we turn to Botswana, after reading an obituary by Emily Langer in the Independent. Her subject was Ketumile Masire – a statesman who described himself as ‘a farmer who has been drawn into politics’.
A summary with added links and photographs
Masire herded cattle before enrolling in a primary school at 13 and receiving a scholarship to attend a high school in South Africa that trained many leaders of the first government of independent Botswana. When his parents died he supported his siblings, becoming a headmaster. He later earned a Master Farmers Certificate, and having saved enough money to buy a tractor and became a successful farmer.
He served on tribal and regional councils and was a founder and secretary-general of the Botswana Democratic Party, now the country’s leading political party. He once travelled 3,000 miles of the Kalahari Desert to attend two dozen meetings over two weeks.
After serving as minister of finance and development planning and Vice President, Ketumile Masire became President of Botswana (1980-1998): roads and schools were built, healthcare improved, access to clean water expanded, farming techniques advanced and life spans extended.
The discovery of diamond reserves had transformed the country’s prospects and Masire continued to use the revenues for the public good after the death of his predecessor Seretse Khama.
He became ‘a model leader in a model nation on a continent where poverty, corruption and violence had crushed the hopes of many for stability and prosperity’.
After leading Botswana through a drought that persisted for much of the 1980s, he shared the Africa Prize for Leadership awarded by the Hunger Project in recognition of the food distribution efforts that helped the country avoid starvation during the crisis.
Though South Africa was Botswana’s major economic partner, Botswana opposed apartheid. “He had to walk a fine line in a really rough neighbourhood,” said Chester Crocker, a former US assistant secretary of state for African affairs. “He had to get along with everybody, without sacrificing his principles.”
After leaving office, in addition to tending the cattle on his ranch, Masire advised other African leaders and chaired an international panel that investigated the Rwandan genocide of 1994. He made important contributions to peace efforts in Congo and, more recently, Mozambique. He established a foundation which seeks to improve agriculture, governance and children’s health in the region.
He once said: “We have a saying in Botswana: A man is never strong until he says what he believes and gives other men the chance to do the same. I am proud to say without a doubt – we are a strong democracy.”
A more chequered account of his life is given in Wikipedia..
Sharma and the Agri-Brigade: bureaucrats and white collar workers lacking all essential survival skills, undermine food producers
In England, many organisations ostensibly concerned with the prosperity of farmers hold endless conferences. Analyst Devinder Sharma notes that, in India, agricultural universities, research institutes, public sector units, and other organisations also frequently gather to talk about ways to improve farmers’ income.
He comments sardonically that while the number of seminars/conferences on doubling the farmers’ income have doubled in the past few months, farmers increasingly sink into a cycle of deprivation.
As he points out, in both countries those who talk of allowing markets to provide higher farm incomes are the ones who get assured salary packets every month – we add that in England some are even paid from a levy on farmers.
The British farming press is now pointing out that large numbers of the UK’s 86,000+ family farmers are facing a threat from the government’s new universal credit (UC). If administered as currently designed, it will have a devastating impact on many of the UK’s most economically vulnerable family farms.
Universal credit will be ‘rolled out’ regionally by the DWP to cover the whole of UK by 2022 – calculated on monthly rather than annual income and it will assume that farmers have a “minimum income floor” which assumes that all applicants earn a wage equivalent to the national minimum wage of about £230 a week which is not the case. Private Eye (The Agri Brigade column) comments:
“None of this is remotely appropriate for farmers, and it shows the folly of trying to introduce a single universal form of income support for all.
On many family farms, where one or two people may work up to 250 acres, there is often no income for up to 10 or even 1 I months in a typical trading year. The sale of a crop of lambs, cattle or grain (or receipt of an EU subsidy) means revenue is raised in just one or two months of the year so the DWP’s assumption of a “basic income floor” each month doesn’t apply. There are also fears that receipts by claimants that rake their income above the basic floor in some months will disrupt entitlement to UC in subsequent months. (And farming losses in some months cannot be offset against a profit in others)”
Shades of the I, Daniel Blake experience:
When the UC administered by the DWP comes into force, skilled hard-working farmers will have to visit unfamiliar Job Centres to register for the benefit. ln addition. They will have to undergo face-to-face interviews over their eligibility for UC and be allocated a work coach to advise them on how to improve their access to better paid employment. Given the difficulties it seems certain many family farms currently claiming tax credits (administered by HMRC) will not apply for universal credit despite their poverty.
An unworkable system
Farming UK reports that a spokesman for the Ulster Farmers Union said: “UC makes it impossible to use prospective incomes or losses, which is often what farmers depend on. The fact that farming is seasonal where there will be long periods of time when a farmer will make a loss in expectation of more profitable times at some other stage during the year. In addition, having to do monthly real-time accounts is an extra burden upon farmers, in an already hard-pressed industry, and to hire someone to prepare these accounts would be an extra expense”.
As the title has it: “bureaucrats and white collar workers lacking all essential survival skills, undermine food producers”.
On BBC Radio 4 today it was reported that some supermarkets are limiting sales of fruit and vegetables.
A newspaper elaborates: “Morrisons and Tesco have limited the amount of lettuce and broccoli after flooding and snow hit farms in Spain. Shortages of other household favourites – including cauliflower, cucumbers, courgettes, oranges, peppers and tomatoes – are also expected. Prices of some veg has rocketed 40% due to the freak weather. Sainsburys admitted weather has also affected its stocks”.
HortiDaily reports on frost in Europe in detail (one of many pictures below) and the search for supplies from Turkey, Morocco, Tunisia.
A former Greenpeace Economist foresees these and more persistent problems in his latest book, Progressive Protectionism.
Alice Thomson continues: after Brexit there is a chance to redefine our relationship with the countryside. The system is skewed to the largest farms. Khalid Abdullah al-Saud received £400,000 last year in subsidies for his vast Juddmonte Farms, which breed racehorses. Such wealthy landowners are already benefiting from the inheritance tax exemption on farming land, and most don’t need the nearly £3 billion in direct subsidies from Brussels – mere pocket money.
Andrea Leadsom, the new environment secretary, said before the referendum that “it would make so much more sense if those with the big fields do the sheep and those with the hill farms do the butterflies”. But Britain should be going the other way, tapering payments so they promote small, innovative, often part-time farms to keep the countryside alive.
With the weak pound, supermarkets should be trying harder to champion local producers
In return farmers should be expected to become true custodians of the countryside – as many already are – planting more trees and hedgerows, helping with flood management, promoting good animal husbandry and richer soils.
Government’s penchant for relying on imported food involves increasing traffic flows, more congestion, more pollution, more road accidents, more calls for more motorway widening and more HGVs doing local deliveries clogging up roads.
Relying on imported food also reduces self-provisioning and self-reliance as impacts of climate change and overpopulation outstrip our ability to feed ourselves.