Cereal farmers have told Sky News a No-Deal Lets Go WTO would be "catastrophic"

Bomber_Harris

Member
Location
London
I watched this report first thing on the news this morning on Sunrise Sky News. I was a tad disappointed that Sara-Jayne Mee wasn't presenting because she is
magnificent

anyway, after watching the report, once again I thought of all you scallywags on this forum who are quite prepared to sacrifice fellow farmers on the altar of Brexit :)

that is all

- Bomber :cool:

https://news.sky.com/story/no-deal-brexit-would-be-catastrophic-farmers-warn-11684345

Cereal farmers have told Sky News leaving the EU without a deal would be "catastrophic" and the continued uncertainty is having a huge cost to business.

Unlike some livestock farming, arable farmers have not been offered any protection against cheaper imports and also face the prospect of an increase in export tariffs.

Matthew Culley has grown malting barley for 25 years on his farms in the Bourne Valley near Andover, Hampshire.

For the first time, earlier this year he has had a contract cut in Europe and says it was because of the uncertainty surrounding export prices.

skynews-farming-matthew-culley_4629364.jpg

Matthew Culley has grown malting barley for 25 years on his farms in the Bourne Valley

He said: "It's a big concern. I have two stores with 240 tonnes of barley sitting in it that should have gone to Europe months ago. The barley was supposed to go to Carlsberg to make beer and instead it is sat here.

"It has cost us 25% of our market price since October. That is £15,000 that should be sitting in the bank.

"But the worry going forward is will we ever see these contacts again? We could be looking at export tariffs into Europe of anything up to £60 a tonne, possibly on barley.

"That's not going to come from the buyer, unlikely to come from the merchant, so will all come from the grower. We can't sustain those sorts of tariffs going forward."


As a result, Mr Culley has already tried diversifying his spring crop and has had to push back his plans for harvest.

It is a similar situation further down the supply chain.

Flour mills up and down the country say they are struggling to plan ahead and are worried about the impact of prolonged uncertainty. Around 40% of flour is exported to Europe, much in the form of baked goods.

Director of the Flour Millers' Association, Alex Waugh, said times are extremely challenging for business.

He said: "It's really tough. You can make all the plans you want but when the deadline to implement keeps moving, you don't know what to say to your customers.

"One of the challenges for us is exports. We're expecting if there's no-deal, our exports will have big tariffs put on them, maybe 50%. So when a customer rings up and asks, 'can you tell me what the price will be next week or next month?', you say 'yes, but it could be another 50% on top of that'.

"That uncertainty is killing for us, as suppliers, it's killing for them, as customers, as they don't know how to manage that in their own marketplace."


skynews-alex-waugh-farmers_4629371.jpg

Director of the Flour Millers' Association, Alex Waugh

The National Farmers' Union told Sky News there is huge fear among British farmers about what could happen and is calling on the government to act now and make a decision on a possible deal.

Vice president Stuart Roberts said: "We have no idea at the moment how we will avoid a disastrous no-deal with catastrophic consequences for farming.

"We are seeing contracts cancelled. I was talking to a grain merchant who has no export sales for malt and barley between now and June, a period when we would normally be exporting malt and barley and they have none.

"We are certainly starting to see that reflected in the price. The other issue is that we're seeing an effect on confidence.

"We carry out an annual confidence survey, and our mid-term confidence among British farmers is at its lowest level since we started it in 2010."
 

capfits

Member
240 tonnes of Barley is only worth £15k? am I reading that right?
Nah he is talking about the drop in prices in the intervening time £60/t over 240t approx £15k.
As for all the scallwags on here being farmers, we both no that is not the case. Unless you count window boxes?
 

Daniel

Member
The blokes selling his barley to make Carslberg, a tasteless, cheap lager, has he thought of ringing round some decent brewers to see if it can be made into something drinkable?

The answer to all this nonsense is to get on with Brexit and provide some certainty to the markets, spineless politicians kicking the can down the road is the worst of all worlds.
 

caveman

Member
Location
East Sussex.
The blokes selling his barley to make Carslberg, a tasteless, cheap lager, has he thought of ringing round some decent brewers to see if it can be made into something drinkable?

The answer to all this nonsense is to get on with Brexit and provide some certainty to the markets, spineless politicians kicking the can down the road is the worst of all worlds.


If he was a true businessman, instead of a chancer who wants an easy life supplying a world wide available commodity propped up with support payments, he'd start his own micro brewery and add value. Many do.
An investment opportunity for Bomber maybe?
 
If he was a true businessman, instead of a chancer who wants an easy life supplying a world wide available commodity propped up with support payments, he'd start his own micro brewery and add value. Many do.
An investment opportunity for Bomber maybe?
So you’re basically saying Brexit is going to be awful for farmers and the answer is to get out and do something else? We have an easy life at the moment as you say, what on earth is wrong with wanting to keep it that way?
 

Scribus

Member
Location
Central Atlantic
Here in Ireland the malting premium is crap with many farmers abandoning the crop altogether, maybe the lad should just sell it as feed if the situation is the same in the UK.
 

Scribus

Member
Location
Central Atlantic
I watched this report first thing on the news this morning on Sunrise Sky News. I was a tad disappointed that Sara-Jayne Mee wasn't presenting because she is
magnificent

anyway, after watching the report, once again I thought of all you scallywags on this forum who are quite prepared to sacrifice fellow farmers on the altar of Brexit :)

that is all

- Bomber :cool:

https://news.sky.com/story/no-deal-brexit-would-be-catastrophic-farmers-warn-11684345

Cereal farmers have told Sky News leaving the EU without a deal would be "catastrophic" and the continued uncertainty is having a huge cost to business.

Unlike some livestock farming, arable farmers have not been offered any protection against cheaper imports and also face the prospect of an increase in export tariffs.

Matthew Culley has grown malting barley for 25 years on his farms in the Bourne Valley near Andover, Hampshire.

For the first time, earlier this year he has had a contract cut in Europe and says it was because of the uncertainty surrounding export prices.

skynews-farming-matthew-culley_4629364.jpg

Matthew Culley has grown malting barley for 25 years on his farms in the Bourne Valley

He said: "It's a big concern. I have two stores with 240 tonnes of barley sitting in it that should have gone to Europe months ago. The barley was supposed to go to Carlsberg to make beer and instead it is sat here.

"It has cost us 25% of our market price since October. That is £15,000 that should be sitting in the bank.

"But the worry going forward is will we ever see these contacts again? We could be looking at export tariffs into Europe of anything up to £60 a tonne, possibly on barley.

"That's not going to come from the buyer, unlikely to come from the merchant, so will all come from the grower. We can't sustain those sorts of tariffs going forward."


As a result, Mr Culley has already tried diversifying his spring crop and has had to push back his plans for harvest.

It is a similar situation further down the supply chain.

Flour mills up and down the country say they are struggling to plan ahead and are worried about the impact of prolonged uncertainty. Around 40% of flour is exported to Europe, much in the form of baked goods.

Director of the Flour Millers' Association, Alex Waugh, said times are extremely challenging for business.

He said: "It's really tough. You can make all the plans you want but when the deadline to implement keeps moving, you don't know what to say to your customers.

"One of the challenges for us is exports. We're expecting if there's no-deal, our exports will have big tariffs put on them, maybe 50%. So when a customer rings up and asks, 'can you tell me what the price will be next week or next month?', you say 'yes, but it could be another 50% on top of that'.

"That uncertainty is killing for us, as suppliers, it's killing for them, as customers, as they don't know how to manage that in their own marketplace."


skynews-alex-waugh-farmers_4629371.jpg

Director of the Flour Millers' Association, Alex Waugh

The National Farmers' Union told Sky News there is huge fear among British farmers about what could happen and is calling on the government to act now and make a decision on a possible deal.

Vice president Stuart Roberts said: "We have no idea at the moment how we will avoid a disastrous no-deal with catastrophic consequences for farming.

"We are seeing contracts cancelled. I was talking to a grain merchant who has no export sales for malt and barley between now and June, a period when we would normally be exporting malt and barley and they have none.

"We are certainly starting to see that reflected in the price. The other issue is that we're seeing an effect on confidence.

"We carry out an annual confidence survey, and our mid-term confidence among British farmers is at its lowest level since we started it in 2010."

Careful there now Bomber, there is copyright on that material, you'll be getting TFF into bother with Sky.
 

yin ewe

Member
Livestock Farmer
Location
Co Antrim
So he is exporting his grain to Europe, yet we also import boat loads of the stuff. Is this another example that is traded unnecessarily?
 

Bomber_Harris

Member
Location
London
He's probably going to have lunch today with the chief executive of Sky so no need to worry there(y)

I don't know the CEO of Sky but I can confirm Bomber UK does have a business relationship with Sky and I have taken lunch on numerous occasions with senior people at the Sky complex in Isleworth. It's literally down the road from my west London satellite office

- Bomber :cool:
 

Bomber_Harris

Member
Location
London
If he was a true businessman, instead of a chancer who wants an easy life supplying a world wide available commodity propped up with support payments, he'd start his own micro brewery and add value. Many do.
An investment opportunity for Bomber maybe?

I don't have nearly enough info to make any kind of judgement as to what this farmer should or shouldn't do.

for starters, how many farmers are there like him in the same boat?
 

Hindsight

Member
Location
Lincolnshire
So he is exporting his grain to Europe, yet we also import boat loads of the stuff. Is this another example that is traded unnecessarily?

Not sure we import malting barley, but there is a good trade in UK malting barley into Northern Europe - Germany and Denmark primarily. UK imports German E grade high protein milling wheat. And there is some exploratory production of these wheat varieties in UK. You seem to prefer a closed economy with minimal external trade unless absolutely necessary. Interesting. Regards.
 

yin ewe

Member
Livestock Farmer
Location
Co Antrim
Not sure we import malting barley, but there is a good trade in UK malting barley into Northern Europe - Germany and Denmark primarily. UK imports German E grade high protein milling wheat. And there is some exploratory production of these wheat varieties in UK. You seem to prefer a closed economy with minimal external trade unless absolutely necessary. Interesting. Regards.

I think we should always look to supply our home market first, and export surplus. Import stuff we can't produce.
We are constantly being told about environmental impact, food miles, eat local produce etc. yet we quite happily ship all sorts of stuff around the world, when it's available on our doorstep.
 

Hindsight

Member
Location
Lincolnshire
I think we should always look to supply our home market first, and export surplus. Import stuff we can't produce.
We are constantly being told about environmental impact, food miles, eat local produce etc. yet we quite happily ship all sorts of stuff around the world, when it's available on our doorstep.

You was 'we' I take it you mean the 'Royal we'? If the market price / forces indicate the optimum for a business is as it is then you are suggesting a state control system to 'make it' that home market is supplied. Hey ho.

An interesting issue that I assume will be debated by politicians for some time to come as the results of Brexit transpire. My initial thoughts are you may find an increase in imports of food stuffs as UK government attempts to engineer exports of financial services. Byt time will tell.

Regards.
 

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