A new chapter for Welsh farming
We have written this blog post because we want our friends and customers to understand why we have suddenly decided to branch out from being a traditional Welsh hill farm, selling our animals through local livestock markets, to setting up a food business. Apologies if it’s a bit heavy and serious, but we feel it’s important to get the message out that farming is facing a very uncertain future. Don’t worry, our other posts will follow a lighter vein.
For many years we contemplated branching out and doing something a bit different. Diversification always seemed an attractive option, but we took our time to decide what would be the best way forward for the farm. In the end it was the outcome of the Brexit vote in 2016 that spurred us into action, and the events that followed convinced us what is best for ourselves, local consumers, and Welsh farming.
In 2019, farm bankruptcies hit a nine-year high. Farmers have suffered an array of unprecedented challenges over the last decade from supermarket price domination to extreme weather, a growing anti-farming and vegan lobby, and a global pandemic. On top of that, we are about to face Brexit. With 93% of exported beef and 92% of lamb exports (by value) going to the EU, this is a serious worry (data from Meat Promotion Wales).
Even with a trade deal, our access to the EU market will not be the same; we will inevitably face more paperwork, increased costs and, in the worst-case scenario, very high tariffs. For producers of Welsh Lamb, the introduction of tariffs will render them instantly less favourable to European buyers in comparison with exporters such as New Zealand. *
These changes will also have an impact on consumption within the UK. As trade deals with the US loom, famers are now fighting to avoid the risk of being undermined by cheap, low welfare imports. It goes without saying that Brexit is going to have a major impact on traditional British farming.
Farmers are also coming to terms with impending loss of financial assistance. Farms in the EU receive annual payments under the Common Agricultural Policy (CAP)[1]. Whilst these are often misconceived as a handout for rich farmers or a nice bit of extra cash, they are in fact a lifeline. Around 80% of land in Wales is designated as “less favoured” or “severely disadvantaged” and most hill beef and sheep farmers rely on these support payments to break even[2]. There is no certainty about future agricultural payments after 2022.
While it is a very uncertain time for farmers, it’s true that hardship inspires innovation. Many traditional farms like ourselves are diversifying and looking at how to continue trading post-Brexit. For us, it has been the catalyst to find new sources of revenue in the domestic market. After considering our options, we focused on the ideas that seemed most tangible and formed a plan. It’s what farmers do best: adapt and persevere.
* Due to factors such as terrain, climate, and scale, farms in New Zealand can produce lamb at a lower cost. Cheaper production = lower prices for the consumer. This is why the UK imports large quantities of lamb from New Zealand.
[1] https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/cap-glance_e
[2] https://business.senedd.wales/documents/s72424/FRL09%20Meat%20Promotion%20Wales.pdf
