Under-estimate FFA at your peril.

[gone up the hill]

We do two things: review our cost-structure, and consider whether we ought to cease production (fallow for the corn boys, like they do in Canada, or more sheep for the beef herds).

The feature which differentiates dairy herds is their single-minded determination to carry on and, in many cases, to expand production (and borrow money with which to do so).

Is this 'resilience'?

Or are we still watching the death throes of the MMB?

If you carry far too many sheep on your ground at the expense of keeping cattle the land will in time end up sheep sick!! the arable sector has the problem of BG which is because the land has been on continuous corn for far too many years.. long term mixed farming will make a comeback no doubt!

 

[jade35]

The NFU does a lot of generic promotion of British farm produce through a variety of initiatives but doesn't have funds to do national campaigns promoting fresh milk - that's the job of the levy board Dairy Co.
We also work with other organisations to promote milk consumption.

@Guy Smith An inexpensive alteration to your 'Back British farming' dropdown box would make finding links to the various marketing websites much easier for the consumer rather than having to go to the correct section and then scrolling down the page. I can see no reason why Turkey producers are treated more favourably than other livestock and grain producers. Going off topic further, your seasonal fruit and vegetables section badly needs updating! I cannot believe that the hort. section have allowed this, it certainly does not educate or encourage the use of British produce.

 

[Princess Pooper]

The NFU does a lot of generic promotion of British farm produce through a variety of initiatives but doesn't have funds to do national campaigns promoting fresh milk - that's the job of the levy board Dairy Co.

Guy, I have a lot of respect for what you do, but you don't really understand the dairy sector. DairyCo does NOT have the funds to do national campaigns promoting fresh milk and it's also not really its remit. Milk is sold by processing companies and it's up to them to promote it and their brands.

 

[jade35]

Yes that last comment by Anna is side stepped very well, a politician in the making there

Arla will do whatever is needed to support their members, they are not a sweet and cuddly co operative but are there to get the best prices for their members within the market constraints. When we went to the original meetings re Milklink joining Arla they spoke of the reason for their growth and why it was so important. They had a great shock in the '90's and realised that they had to change how they operated, this has greatly influenced the co op.

Maybe, just maybe, some of the other processors and cheese makers need to go that extra mile as well for their producers.

On a different note, looking at the Arla website today I found this Good subliminal advertising Netta Levy, 92 is well worth watching - certainly made me smile
http://letinthegoodness.arla.com/

 

[Princess Pooper]

All credit to Arla for their big ad campaign. They recognise that a lot of their brands - Anchor butter being the most obvious example - are avoided by consumers who want to support British farming. Many (including, as I recall it, on this forum) think that the Anchor butter sold in the UK comes from NZ when in fact it is made from British milk. So to highlight their brands in a large ad makes good sense. It still seems very strange driving by the Tuxford and Tebbutt stilton creamery in Melton Mowbray and seeing a big Arla logo on it but that is the way of the world now!

 

[Oldmacdonald]

Come along. Its at Exeter NFU office 7.00 pm, 24/11/14 . Its an open meeting. I'm looking forward to hearing from as many members as possible - including GUTH.

That would almost be worth the 1200 mile return drive.

 

[Guy Smith]

I'm not sure it's for the NFU to offer farmers business advice as to the best way to market their produce. Obviously we are keen to promote robust and fair contracts between farmers and processors/ retailers. We are broadly in favour of farmer coops but respect many of our members sell to privately owned businesses.

More generally, I think as an industry we need to have a debate on the value and importance of generic promotion of produce to consumers. Some are of the view it's a waste of money while others insist that is what levy boards should do.

Generic promotion is slightly different for the NFU as we are promoting British farming not branded products where audiences are wider than just consumers, we are also looking to policy makers to make them realise if they strangle British farming with regulation or give us an unfair deal when compared to our competitors then they will continue to export food production overseas which unfortunately has been the trend over the last 10-20 years.

 

[caveman]

I'm not sure it's for the NFU to offer farmers business advice as to the best way to market their produce. Obviously we are keen to promote robust and fair contracts between farmers and processors/ retailers. We are broadly in favour of farmer coops but respect many of our members sell to privately owned businesses.

More generally, I think as an industry we need to have a debate on the value and importance of generic promotion of produce to consumers. Some are of the view it's a waste of money while others insist that is what levy boards should do.

Generic promotion is slightly different for the NFU as we are promoting British farming not branded products where audiences are wider than just consumers, we are also looking to policy makers to make them realise if they strangle British farming with regulation or give us an unfair deal when compared to our competitors then they will continue to export food production overseas which unfortunately has been the trend over the last 10-20 years.

Perhaps, you should however, be monitoring the use of levies that are being compulsorily extracted from your members.

 

[Guy Smith]

Yes, I'd agree that is one of our roles to an extent and we do often meet with AHDB. But we do need to hear from our members what they want from the levy bodies. I don't think it is at all clear whether levy payers want money spent on generic promotion. At a time when the levy bodies are going through a period of change I think it time for levy payers to speak up.

 

[Princess Pooper]

Well I for one certainly don't want DCo spending my money on generic promotion, £6.5-£7m is their total budget and that wouldn't exactly go very far! I want them to continue investing it in genetic evaluations, much-needed research, extension officers, market information, public engagement about dairy farming (www.thisisdairyfarming.com, twitter activity @thisisdairy etc) because these all help me to run my business efficiently and help the public to think well of dairy and dairy farming. That then creates a good environment for my milk buyer (which I partly own, as a co-op) to invest in marketing its produce which is not liquid milk anyway. At 0.06 ppl levy it's not exactly going to bankrupt me and returns massively on my investment because I actually make a point of making use of what they do.

 

[DrDunc]

If the world's milk market is supposed to be in the doldrums, why are New Zealand prices up so much?

http://www.fonterra.com/cn/en/Financial/Farmgate+Milk+Price

 

[Princess Pooper]

If the world's milk market is supposed to be in the doldrums, why are New Zealand prices up so much?

http://www.fonterra.com/cn/en/Financial/Farmgate Milk Price

because that was February!!!!

Suggest you read this one for 2014-15 forecasts of $5.30 kg/MS. Latest NZ milk production figures out next week.

 

[farmer on a bike]

Lto has the current Fonterra price as 26.97euro cents for 4.2%BF and 3.4%P which at today's exchange rate is 21.3ppl.

 

[DrDunc]

because that was February!!!!

Suggest you read this one for 2014-15 forecasts of $5.30 kg/MS. Latest NZ milk production figures out next week.

Ahh

 

[buffalo_soldier]

Well I for one certainly don't want DCo spending my money on generic promotion, £6.5-£7m is their total budget

Wonder how much of that they spend paying themselves?
I think it would do the dairy industry more favours if they picked 24 farmers out of a hat and gave them £250k each, and repeat annually.

 

[bigw]

Wonder how much of that they spend paying themselves?
I think it would do the dairy industry more favours if they picked 24 farmers out of a hat and gave them £250k each, and repeat annually.

Haha what a great idea!!!

 

[neilo]

Wonder how much of that they spend paying themselves?
I think it would do the dairy industry more favours if they picked 24 farmers out of a hat and gave them £250k each, and repeat annually.

Really? How many farmers could engage with the GP and promote the product, any ag product, as well as overpaid ad producers? I thought the turnaround ('ish) of the milk co-ops only happened when the boards realised that farmers should stick with what they know best, farming, and delegate the running of the business to those that are good at that.

 

[foxbox]

Well I for one certainly don't want DCo spending my money on generic promotion, £6.5-£7m is their total budget and that wouldn't exactly go very far! I want them to continue investing it in genetic evaluations, much-needed research, extension officers, market information, public engagement about dairy farming (www.thisisdairyfarming.com, twitter activity @thisisdairy etc) because these all help me to run my business efficiently and help the public to think well of dairy and dairy farming. That then creates a good environment for my milk buyer (which I partly own, as a co-op) to invest in marketing its produce which is not liquid milk anyway. At 0.06 ppl levy it's not exactly going to bankrupt me and returns massively on my investment because I actually make a point of making use of what they do.

Nice post. I feel the same way about Eblex, it is through a lot of effort on their part that our beef unit is as productive (nearly wrote profitable there but none of us are allowed to be that are we?) as it is, but we've had to work with them in order to achieve what we have. We now have a tight calving pattern, very high bulling to weaning ratios, very few health issues and very good handling facilities too, all as a result of seeing the benefits and being advised on implementation by Eblex staff and speakers. Of course if we'd been any good at our job in the first place we wouldn't have needed any advice or gone looking for it but instead bashed on as we always had done, doubt we'd have been where we are now though.

They are not perfect but suggestions that their staff are free-loading off the sector or in some way having an easy life at our expense is nonsense. Unless of course you ignore them in which case the few £ per beast slaughtered becomes a huge issue for you when there are undoubtedly other single un-addressed issues that you could save far more.

As far as advertising goes (and not just focussing on Eblex but all of the levy bodies, NFU etc), do we as farmers really need to be seeing this advertising? Shouldn't it be appearing in the foodie and supermarket magazines, the women's magazines in the newsagents and on daytime TV? Sorry for being stereotypical but lumping such advertising in to places that farmers are going to see it will cost money and achieve sod all, if it stands any chance of working it has to be aimed at the largest numbers of buyers in the household .

 

[neilo]

Well I for one certainly don't want DCo spending my money on generic promotion, £6.5-£7m is their total budget and that wouldn't exactly go very far! I want them to continue investing it in genetic evaluations, much-needed research, extension officers, market information, public engagement about dairy farming (www.thisisdairyfarming.com, twitter activity @thisisdairy etc) because these all help me to run my business efficiently and help the public to think well of dairy and dairy farming. That then creates a good environment for my milk buyer (which I partly own, as a co-op) to invest in marketing its produce which is not liquid milk anyway. At 0.06 ppl levy it's not exactly going to bankrupt me and returns massively on my investment because I actually make a point of making use of what they do.

Therein lies the problem. I have ready many times that the various levy boards shouldn't be promoting genetic evaluations and such like, and should be doing generic advertising instead. You will never get everyone to agree on the 'right' way for levy funds to be used.

Wasn't 'The White Stuff' campaign co-funded by Dairyco (or whatever they were called then) and the processors? I seem to remember that ad campaign getting slagged off by farmers too, even though all the follow up surveys indicated it was one of the most successful ad campaigns ever IIRC.

 

[gone up the hill]

Yes, I'd agree that is one of our roles to an extent and we do often meet with AHDB. But we do need to hear from our members what they want from the levy bodies. I don't think it is at all clear whether levy payers want money spent on generic promotion. At a time when the levy bodies are going through a period of change I think it time for levy payers to speak up.

Clearly the role of the levy boards need to change ( in what way/ by what extent needs to be explored and all options should be open at this time ) going forward, they have very little accountability to the farmers who basically are forced to pay large sums of money to them in form of levies charged for fat animals/ produce etc..

Just an idea but could the NFU run some roadshows at livestock markets ( like Exeter/ sedegemoor for example ) to get farmers views and also perhaps send out a free return questionnaire with the kill sheets from the major Abbs asking for farmers views on Exblex for starters?? ( alongside a questionnaire to dairy farmers for the likes of dairy co etc etc )...

As for regional farmers co-op's being set up, well I think this could be a very good time to explore this option as Tesco for starters is in real trouble and no doubt other supermarkets will follow them into big problems down the road, Tesco will have no option but to unload prime sites suitable for a farmers co-op supermarket next year, no reason if regional farm co-ops were set up to stop some farmers who wanted to sell to other supermarket buyers if they so wish and not to the farmer co-op!

Clearly there is a massive mark up from the farm gate to the shoppers trolley but a fat steer worth £1300 to a farmer is worth about £3000 on the supermarket shelve and a tonne of spuds worth £100 to a farmer is worth £1000 by the time it reaches the shoppers trolley, clearly not all the difference is profit but say you take £350 to cover the co-op cost and £400 to cover the slaughter costs that would still leave an extra £950 for the farm at the farm gate which would = a deadweight price of £5.98 kilo or £2243 for a 375 kilo carcase...