The future of the UK’s relationship with the EU remains uncertain for 2019, but the NFU has been working hard to highlight the serious implications of a no deal Brexit for the UK food and farming sector. This includes the huge disruption that would result from disrupted trade and new tariff rules on the export of animal products -at the same time as the government potentially choosing to unilaterally lower UK import tariffs to control food price inflation. This would result in the UK market being open to imports of food produced to lower standards than our own from across the world.
It is clear that one of our top priorities in 2019 will continue to be the importance of ensuring British products are not undermined by imports of an inferior standard. The NFU has written to all MPs to highlight these concerns.
Whatever the outcome of Brexit, the NFU dairy team will be working to ensure that farmers have the most favourable environment for its members.
Dairy Contracts:
One way in which government can support farmers in meeting the challenges of the future is through supporting a fair and functioning supply chain. This is why, the NFU dairy board has been fighting hard to ensure that Defra’s long awaited consultation on the future regulation of dairy contracts is not kicked into the long grass. It remains a priority for the NFU to use this opportunity to place dairy farmers in a strong position to develop professional, sustainable relationships with their buyer, to be commercially focused, innovative and competitive.
For too long, dairy farmers have shouldered too much of the risk in the dairy market and in many cases have been subject to unfair contract terms and trading practices. As outlined in the GCA review published in February 2018, there is clearly an imbalance of power within the dairy supply chain. To fix this we want to see flexible and innovative regulation that delivers fair terms for farmers and an equitable balancing of risk between producers and their buyers.
We have been assured that Ministers are fully committed to consulting on the regulation of dairy contracts, whether this is under the new Agricultural bill or CMO regulation. In the meantime, we will continue to develop our position, speaking to industry stakeholders and farmers. We are committed to constructive engagement with industry and government to deliver the improvements we all want to see and regulation that works for all.
Clean Air:
The environment is an ever growing focus for all sectors and dairy has its part to play in improving the industry’s environmental footprint. The Government released its Clean Air Strategy in 2018 which included a number of proposals for reducing ammonia emissions in agricultural including the environmental permitting of dairy farms.
The NFU has welcomed the opportunity to work with Defra and the Environment Agency on a holistic strategy for tackling ammonia. However we have been clear that environmental permitting is not the right way to deliver this. The diverse nature of UK dairy farms means that a one size fits all approach would be ineffective. It is vital that the health and welfare needs of cattle and the overall productivity of a farm business is taken into account to ensure future environmental measures work alongside a thriving dairy sector. It is also important that a range of options are offered to tackle ammonia emissions which suit different farming systems.
To help achieve this we have met with a number of industry stakeholders, taken the Defra Air Quality team out on farm and organised a joint study tour with AHDB to see how Dutch dairy farmers have had to adapt to meet regulation. We also ran a Dairy Farm Survey to collect data on individual farm practices which affect ammonia emissions, something which is currently lacking in the ammonia emissions inventory. The NFU will respond to the forthcoming clean air strategy report.
Labour Shortages:
Access to a permanent skilled workforce is imperative if farming is to succeed post-Brexit and the NFU is lobbying hard to ensure future immigration policy is focused on roles which are suffering real shortages.
In 2017 the RABDF Labour Report indicated that 32% of dairy farmers had employed labour from outside the UK within the last five years. A large proportion of these were from Eastern Europe.
The NFU submitted a strong response to the Migration Advisory Committee’s call for evidence on the Shortage Occupation List to get dairy herdsman placed on the list. This would enable dairy farmers to access non-UK staff without the need to go through a Resident Labour Market Test – or its future equivalent. With the release of the Immigration Bill in early 2019 we have an opportunity to shape future migration policies and ensure access to critical roles many non-UK workers perform on our farms, at all skill levels, is accounted for.
Positive Promotion:
Over the year I was proud to see so many members promoting dairy and supporting the joint industry campaign the Department of Dairy Related Scrumptious Affairs. I was delighted to hear that following extremely good first year results the campaign has been granted the funding to run for a second year, increasing the scope of its target audience and reaching even more consumers.
With so much negative media in the headlines recently it can be easy to get disheartened. Individuals should have a choice over the food they purchase and consume, but this should not be through the demonization of other products. As an industry we need to not only shout loudly about the great product we produce but also take a zero tolerance approach to extremist rhetoric and bullying tactics. Ultimately there are over 27 million households in the UK who buy dairy products and dairy products feature in three out of four meal occasions.
The loudly voiced negativity of a few should not detract from the real story dairy has to sell, the fundamental part it plays in a nutritious diet and the world leading welfare and environmental standards of British dairy farmers.