This Week in Farming: Dairy woes, election and aginflation

Welcome to This Week in Farming, our round-up of eye-catching news, features and the biggest topics that affected farming this week.

Here are the five biggest topics from the past seven days, plus a reminder to listen to the podcast.

Dairy farmers facing ‘perfect storm’

Falling milk prices and labour shortages have left dairy farmers fearing for their future in the industry.

The issue was discussed at this week’s NFU council meeting, with Dairy Board chairman Michael Oakes warning most farmers were now being paid a milk price of 32-39p/litre, with cost of production lying around the mid-40s.

In Wales, there was some slightly more positive news for the dairy sector, as rural affairs minister Lesley Griffiths announced a further delay to the planned introduction of a nitrogen limit licensing scheme.

Labour hints at increased farm budget

May’s local elections are just round the corner, but politicians in Westminster are already looking ahead to the next general election.

In an interview with Farmers Weekly, Labour’s shadow farming minister Daniel Zeichner sketched out the party’s likely agriculture offering – hinting at a possible increase in the farming budget and changes to the Environmental Land Management scheme so it offers “basic economic support” to farmers.

You can read my take on his comments in this week’s Editor’s View.

Meanwhile in Scotland, new first minister Humza Yousaf’s honeymoon period – if he ever had one – is already over, with farm groups hitting out at his failure to appoint a junior rural minister.

Pig prices at all-time highs

Some good news for the struggling pig sector: pig prices are currently 26% higher than this time last year, supported by tight supplies both in the domestic market and on the Continent.

But the gains come on the back of a worrying contraction in the breeding herd. Sow numbers have fallen sharply, with the UK female breeding pig herd dropping 14% in 2022 to 343,000 head.

The Environment, Food and Rural Affairs committee has written to Defra secretary Therese Coffey calling for improved access for UK pork exports to China to help the situation.

Aginflation drops for first time in three years

New figures show there is some light at the end of the inflation tunnel for farmers struggling with sky-high input costs.

Buying group AF’s overall index shows a 2.55% fall for the six months to the end of March 2023, with fertiliser costs dropping by 30% and fuel by 23%.

And for farmers who want to save further cash by being tax savvy, we have a great guide to capital allowances.

Supermarket power tops concerns at Question Time

Members of the audience at Farmers Weekly’s latest Question Time in Norwich, at the John Innes Centre, urged government to do more to curb the power of supermarkets.

Former groceries code adjudicator Christine Tacon, who was on the panel, said retailers had a “massive shock” in recent months when they could not get hold of the food they wanted and claimed power was shifting back to suppliers.

The role of Red Tractor was also questioned at the event, with some claiming it has created increased bureaucracy while providing little benefit to farmers in the way of a premium.

Apply now to be the audience for the fourth event at the Royal Agricultural University on Thursday 11 May.

FW podcast

Don’t forget to tune into the latest edition of the Farmers Weekly podcast with Johann Tasker and Hugh Broom, where they discuss the wet spring hampering spring crop planting and how farm co-operatives are joining forces for bigger buying power.

Listen to the podcasts via our website or take them with you in the cab by downloading it from your usual podcast platform.