Will Corbyn/Labour’s industrial strategy guarantee fair production costs for perishable food – or rely on the global market?
“It is simply not right that any worker should have to sell their product for less than it costs them to produce them, and this is acutely felt by dairy farmers.”
Countryfile, reviewing Jeremy Corbyn’s “Rural Renewal” report, continued to quote: “A combination of a small number of very large milk processers operating as suppliers to retailers, supermarkets operating a ‘price war’ forcing down the cost of milk, and milk co-ops losing their power has resulted in thousands of dairy farmers finding it harder and harder to make ends meet, let alone make a profit.”
Corbyn said “we will work with all parties to ensure that customers are offered a price they can afford for their milk, but not at the expense of farmers whose very livelihoods depend on it. This will include investigating regulating supermarkets to prevent below cost selling.”
Factories don’t sell their products at a loss, but those producing perishable food are often required to do so. It’s so easy to put pressure on those producing perishable food: fresh milk, fruit and vegetables, who have to sell quickly – in effect holding them to ransom.
Seven years ago Telegraph View pointed out that some supermarkets pay less for milk than it costs to produce. Nothing has changed! Prices sometimes drop to the 1990s level but all other costs have risen steeply.
Confidence in successive governments continues to fall as the country has become increasingly dependent on imported food – which now even includes tomatoes from Morocco and eggs and poultry from Israeli settlements in the occupied Palestinian territories.
A Fairtrade Policy Director noted that ‘The unpleasant and aggressive tough love lobby’ which has cut social and healthcare, education and public transport doesn’t spare family farmers
Corbyn on a Cumbrian farm, pledging to do “everything necessary” to stop no-deal Brexit carnage for famrers
No thoughts of love – or natural justice – appeared in the Oxford Farming Conference address of Liz Truss, Secretary of State for Environment, Food and Rural Affairs, who blamed the ‘difficult world market’ for low milk prices and focussed on farming’s ‘huge export potential’, rejoicing that ‘we now grow chillies which we export to Pakistan and Mexico’.
Barbara Crowther (right), by far the best Fairtrade Foundation Director of Policy & Public Affairs (2009-2017), said “There is a very unpleasant and aggressive tough love lobby out there who simply do not understand the importance of locally sourced food and the underlying food security issues which are only going to get worse as the global population grows”. She asked “Could we make our Mark work on milk?”. This link to that (now unwelcome?) reference has been removed.
It’s a fair question and is something that has been looked at, and discussed many times – not least as part of a ‘Local and Fair’ conference a few years ago, bringing Fairtrade and Cumbrian farmers groups together to discuss the issues they hold in common, co-ordinated by Joe Human (see Barbara in video at that conference).
MP Anne McIntosh (below, who chaired the parliamentary Environment, Food and Rural Affairs (EFRA) Committee, for several years, urged the Government to intervene, after it was reported that 60 dairy farmers went out of business in one month alone. EFRA wanted the Groceries Code which covers suppliers to the big supermarkets and retailers, to be extended to include dairy farmers – but soon afterwards, the estimable Ms McIntosh was deselected. Now in the Lords she is campaigning for the farming interests threatened by Brexit
The Royal Association of British Dairy Farmers insists that all supermarkets could pay dairy farmers a price for milk that would meet the cost of production without increasing the price charged to the consumer: they would just need to accept a slightly lower profit on the milk they sell.
Placing the issue third after Angora goats and use of level crossings, the BBC, in a video link no longer working, gave priority to the destructive comments of the establishment economist, Sean Rickard.
Apparently unaware of economic interdependence – the knock-on effect to other industries and the rural economy – Sean Rickard tells farmers that if they can’t manage under these conditions, ‘they should give up making milk and live off the subsidy’.
In fact, as Clitheroe dairy farmer Kathleen Calvert often points out, the whole rural economy is affected as farmers lose income. Each working dairy farm returns a huge amount of money back into the wider economy, supporting many other regional businesses, and therefore helping to provide jobs for many. Each dairy farm that ceases to trade has a knock-on effect on the surrounding community and the economy, due to a loss of income to many other businesses. From press release, link no longer works. Instead see a briefer reference in Lancashire Life.
The key message “We are losing hold of a vital skills base at an alarming rate as dedicated dairy farming families are no longer financially able or prepared to work at a continual loss. We believe that many milk buyers gamble with the continuity and security of the UK milk supply by keeping much of the profit further up the market chain. Despite varying business structures and the importance of food production, most farm gate prices are now lower than production costs. This has a knock on effect on a wide range of other businesses and livelihoods of countless people involved, ultimately leading to pressure on incomes”.
Dairy farmers are compelled to pay a levy to DairyCo/AHDB, a body set up by government, which, consultant Ian Potter (above right) notes, has received – and spent – more than £1 million extra as a result of the increase in production. He asks: “But on what? Cynics say it spends the money on encouraging more production because that generates more levy money for it…and so on!” He continues: “In my opinion we now need a campaign to promote the buying of British dairy products using British milk . . . I have heard one Tesco farmer would prefer to give his levy to Tesco if he could to help it promote British milk. That makes sense to me if DairyCo won’t!”
Meanwhile food imports rise and government ministers advise hardworking farmers to place their ‘commodities’ on the global market so that unproductive internet bound speculators can ‘make a killing’ – nowadays more often crouched over their computer screens.
Lesley Docksey sends news that Marianne Birkby has written to Cumbria County Council asking them not to approve the plan to extend the life and capacity of the Drigg nuclear waste site (below) on the West Coast of Cumbria.
Three years ago DEFRA reported on the nuclear sites which are at risk of flooding and coastal erosion – see Rob Edwards in the Guardian.
Are politicians acting on this information?
Last year, the Guardian reported that an internal Environment Agency document suggests that it was a mistake to position the Drigg radioactive waste site close to the Cumbrian coast because of the risk of flooding. Ian Parker, the Environment Agency’s group manager in Cumbria said, after detailed technical examinations: ‘It’s highly probable the coast will erode and the waste (at Drigg) will be disrupted.’
Are contents confined to low level waste?
The University of Reading has pointed out in its radiological risk assessment that compacted waste is currently placed in steel ISO-freight containers, with void space filled with highly fluid cement based grout. Radionuclides with highest activities in the inventory – include 3H, 241Pu, 137Cs, 234U and 90Sr, 238U and 232Th.
Have defective radioactive waste containers been replaced?
In 2013 the Low Level Repository Ltd’s management wrote: “in containers at the tops of stacks, the external capping grout has undergone extensive physical degradation and settlement; the lids are not full of grout, and the grout is generally heavily cracked. The state of the capping grout in underlying layers is better; most containers only show sparse cracking and typical settlement in the lid is approximately 15 mm. Standing water, sometimes contaminated with low levels of radioactivity, is present in approximately half of the containers at the tops of stacks. In containers at the tops of stacks, organic matter (principally leaf mould) has accumulated beneath many open grout ports, with vegetation growing from some grout ports. Corrosion, sometimes fully penetrating, is present in some container lids at the tops of stacks…”
On this site, earlier this month, there was a report by Marianne Birkby who lives in the area and is spokesperson for Radiation Free Lakeland, a voluntary organisation of local activists giving their own time and expertise freely. She highlighted the fact that the BBC helicopter relaying images of the devastation avoided showing areas in which nuclear installations are located: Sellafield, Drigg, Lillyhall and the proposed new nuclear plant on the river Ehen floodplain, Moorside.
There is a petition: LOCK THE GATE ON DRIGG and Marianne says that a letter to Cumbria County Council would also be fantastic.
“We need to tell our elected representatives at local and national level that there is no “away” for radioactive wastes. In a finite world there is no infinite *dilution* of radioactive wastes”.
She invites readers to write to the Leader of Cumbria County Council, Stuart Young: Stewart.Young@cumbria.gov.uk – and if you have time to the Cabinet members via Democratic Services: firstname.lastname@example.org
Sellafield plan: government guaranteed construction debt and only 5000 cubic metres of radioactive waste
Tom Samson, the chief executive of NuGen, a company planning a plant in Cumbria, has referred to a ‘fog’ which should lift in order for him to see the path ahead.
Andrew Bounds (FT), in an article on the subject, failed to mention the more sensitive reasons for the four year delay in EDF’s construction of a new nuclear plant at Hinkley Point in Somerset. His colleague, Jim Pickard, was not so reticent. Though not mentioning the Finnish problems, he wrote about the reasons for escalating costs at its flagship Flamanville project in Normandy:
“The £7bn French scheme — designed to showcase new atomic technology — is based on an “EPR” European pressurised reactor, the same model that will be used in Hinkley. Further concerns mounted last week when a leaked report from France’s nuclear safety watchdog highlighted faults in Flamanville’s cooling system. That followed a warning in April by the French Nuclear Safety Regulator that there was an excessive amount of carbon in the steel of the reactor vessel”.
NuGen’s proposed £15bn plant at Moorside, to the north and west of Sellafield (above) in Cumbria, could be generating by the mid-2020s, as the UK government can guarantee construction debt, which is “crucial”, Mr Samson said. The government is expected to seek a lower ‘strike price’ with NuGen than at Hinkley Point, which has been guaranteed a revenue of £92.50 per megawatt hour, linked to inflation, for 35 years.
EDF builds the “EPR” European pressurised reactor and NuGen’s Moorside would use three AP1000 pressurised water reactors built by Westinghouse.The model is untried, but will enter service in China in two years’ time and others are being installed in the US. For concerns about the AP 1000’s design and materials, see https://en.wikipedia.org/wiki/AP1000.
The UK government is said to be committed to nuclear power as a clean source of energy generation
Mr Samson said “We encourage the government and local community to find a [long-term storage] solution” as the waste for the 60-year life of the Moorside plant would fill two Olympic-sized swimming pools”.
Cleaner than solar, wind and hydro?