Month: April 2017

A report claiming the British dairy industry has introduced intensive indoor dairy farms “by stealth” has been slammed by the NFU.

The report, by World Animal Protection (WAP) UK, accuses developers of increasing dairy farm sizes gradually, and then applying for planning permission retrospectively. Although no official figures exist, the study authors claim their research has shown there are nearly 100 “intensive indoor dairy farms” in the UK, with a “further 43 suspected”.

“These systems can hold over 2,000 cows and now account for up to a fifth of the milk produced in the UK,” says the report.

“Cows in these systems never go outside, are pushed to their limits to produce more milk, and are at higher risk of suffering from lameness and udder infections.”

Andrew Ayrton, a pasturebased dairy farmer from Skipton, Yorkshire, is quoted in the report saying: “Very few people are aware of intensive indoor dairy farming, and most believe that all cows go out to graze on grass.

“This way of farming causes lameness and health problems associated with standing in slurry all year. To go outdoors is a basic freedom that every cow should have.”

However, the NFU said it was “disappointed” with yet another report that “paints a false image of the UK dairy industry”.

To make matters worse, the report is published at a time when dairy farmers were struggling with unsustainably low prices, below the cost of production.

Sian Davies, NFU chief dairy adviser, said: “UK dairy farmers take the health and welfare of their dairy cows extremely seriously and it’s not in anyone’s benefit to see this change.

“More than 90% of the milk produced and consumed in the UK is inspected for environmental, animal health and welfare and food safety standards under the Red Tractor scheme, and consumers can be confident in dairy products dis playing the Red Tractor logo.”

She added: “It is a fact that dairy farms have increased in size over the years – we now have about 1.895 million dairy cows on 13,355 dairy farms in the UK and the average herd size is about 123 cows, according to AHDB.

“Unlike what WAP states, there is no evidence to prove that the health and welfare of the dairy cow is compromised due to the scale or the system of the farm. Far more important is the management of the system to best suit the needs of the cow.”

A cross-party group of MPs has called for action to protect soil health, warning that some of the most productive land in England is at risk of becoming unprofitable within a generation because of soil erosion and loss of carbon.

The Environmental Audit Committee (EAC) has published a report which calls for a review of cross-compliance rules and a rethink about the subsidy regime which encourages the growth of maize for anaerobic digestion (AD) plants.

The report said that the government relied on the cross-compliance rules associated with the Basic Payment Scheme (BPS) to regulate agricultural soil health, but crucial elements such as structure and biology were not assessed at all.

The rules were also accompanied by minimal inspections, which meant only two breaches were detected in 2015.

“The cross-compliance rules which regulate agricultural soil health must be revised with greater scope, force and ambition,” said the report, published on Thursday (2 June).

“Currently the rules do not cover some important aspects of soil health, are accompanied by a minimal inspection regime, and focus only on preventing further damage to soil rather than restoring and improving soil health.”

MAIZE SUPPORT

MPs also called for the double subsidy for growing maize for anaerobic digestion to be withdrawn, arguing it was counterproductive to managing soil sustainably.

At present, maize grown for AD is supported by renewable energy subsidies, as well as the normal BPS payment.

The committee pointed to evidence submitted to it over the course of its enquiry that the growth of maize for AD was a major cause of soil erosion.

“Renewable energy subsidies for anaerobic digestion should be restructured to avoid harmful unintended consequences,” said the report.

“Revisions should either exclude maize from the subsidy altogether or impose strict conditions on subsidised maize production to avoid practices in high-risk locations which lead to soil damage.”

The report suggested that the UK’s arable soils have seen a worrying decline in carbon levels since 1978, with widespread and ongoing reductions in peat soil carbon.

If carbon continued to be lost into the atmosphere it would make it harder to meet targets to limit the effects of climate change, it said.

It was also a threat to the sustainability of food production.

Mary Creagh, EAC chairman, said: “Soil degradation could mean that some of our most productive agricultural land becomes unprofitable within a generation. Every tonne of carbon we can retain in soil will help us meet our carbon budgets and slow climate change. The government wants to see all soils managed sustainably by 2030, but their current actions will not be enough to reach that goal.”

Farm leaders have expressed deep disappointment over proposed cuts to Feed-in Tariffs (Fits) for anaerobic digestion (AD) plants.

They warn that any cuts to tariffs could sound the “death knell” for the future of on-farm biogas installations.

The Department for Energy and Climate Change (Decc) has issued a consultation which says from January 2017 tariffs for plants under 500kW will be cut by 27%.

Meanwhile, the tariff for plants over 500kW will disappear completely, moving from 7.8p/kWh to zero. Tariffs for existing installations will remain unchanged.

The government also wants to minimise the use of crops as a feedstock for AD plants, so is looking at limiting Fits payments to electricity generated from biogas derived from waste and residues.

Jonathan Scurlock, NFU chief adviser on renewable energy, said the union would be fighting the proposed cuts, which came on top of slashed support for the solar and biomass industries.

“Yet again, this government seems determined to throttle the life out of the emerging renewable energy market,” he said.

Dr Scurlock pointed out that only two years ago the Fits for small- and medium-scale AD plants were 14-15p/kWh, nearly three times the rates proposed from 2017.

But there had been no corresponding reduction in capital costs.

“The multiple environmental and soil management benefits from widespread deployment of on-farm anaerobic digesters will be lost, including the huge potential for avoiding farmyard methane emissions from manure and slurry – a bit of an own-goal for Decc, given that this is a powerful greenhouse gas,” he said.

Charlotte Morton, chief executive of the Anaerobic Digestion and Bioresources Association, said the consultation did nothing to address Decc’s fundamental lack of ambition for AD and community-scale renewables.

“Instead, it proposes restrictions to plant sizes and feedstocks that will make it even harder to deploy viable AD plants using waste, crops or agricultural residues.

“Removing support for new plants above 500kW is completely unjustified and will kill off projects which could otherwise have delivered Decc’s objectives while representing good value for money.”

But TFA chief executive George Dunn said he welcomed the move. “The TFA has been the only farming organisation calling on government to stop the public subsidy of crop-fed AD systems, because of the impact on land rents and soil management.”

One of the UK’s largest anaerobic digester (AD) plants is facing a battle to continue operating at its current scale.

Crouchland Farm, in Plaistow, West Sussex, has had its retrospective planning application for expansion of its AD facility refused and it is now appealing that decision with a case due to be heard in September this year.

West Sussex County Council’s planning committee rejected the application against their officers’ recommendations.

Crouchland began operating an on-farm AD unit to process its own waste from its dairy herd in 2009 to generate electricity to power the farm and export the surplus to National Grid.

But since then, the company, Crouchland Biogas, has enlarged the site without planning permission to an industrial-sized AD plant and has been exporting biomethane by tanker to enter the National Grid, near Portsmouth.

Crouchland had its retrospective planning application to upgrade the farm’s AD plant refused in March 2015.

In addition, the company has received two council enforcement notices to remove the unauthorised, operational infrastructure and to stop the export of biomethane.

It is appealing the two enforcement notices, which will be heard after the appeal against the refusal for retrospective planning.

Crouchland has insisted the plans would provide renewable biogas to 3,850 West Sussex homes, secure more than 20 local jobs and ensure the future of its dairy business. In addition, the farm sources feedstock from more than 20 local farms, which it says “rely on our biogas plant”.

Leon Mekitarian, Crouchland’s managing director, told Farmers Weekly the expansion of the AD facility was an essential compond nent to ensure the survival of the business.

Mr Mekitarian said prices were “terrible” in dairying and he had sought to diversify to stay afloat.

He added: “Every farm in its own way is faced with these dilemmas. We just happen to be a large dairy farm in a corner of West Sussex and we are the last man standing.

“You have got to make the best of what you have been given and the opportunities that are available to you locally.”

However, there were over 400 letters of objection from the local community and 1,100 people have signed a petition by local campaign group Protect Our Rural Environment (Pore), against the retrospective planning application.

Clarissa Bushell, a spokeswoman for Pore, said: “The community has campaigned against the industrial-sized AD plant due to its inappropriate location in a rural, tranquil area of West Sussex, which does not have the appropriate highway access and has caused safety issues on the rural lanes.

“We believe that if Crouchland Biogas had applied for planning permission before they built their industrial plant, they would never have got planning permission because it is too large a site in too rural a location.”

Local residents are also concerned about heavy vehicle movements from HGVs to and from the site and the effect on country lanes, associated noise and safety issues.

Meanwhile, the Environment Agency has launched legal proceedings against Crouchland Farm in relation to an alleged incident of pollution of the River Kird in December 2013.

The agency is also investigating separate liquid waste leaks, including one in June 2015 and another in March 2016.

One of the leaks, in June 2015, concerned a digestate spill on land belonging to sheep farmers Lynda and Richard Whittemore.

Beleaguered German dairy farmers are to receive at least €100m (£76m) from the federal government in a bid to try and keep them in business.

Germany’s minister of agriculture Christian Schmidt announced the package this week following an emergency milk summit in Berlin.

“We all agreed that on the one hand we need structural improvements, but on the other that we need to provide short-term assistance to farmers,” he said.

“The federal government will provide the farmers with a package of €100m plus X.

“I am in talks with the finance minister and will talk to Germany’s states and Europe to determine how large the X is.”

It is anticipated that the aid will include loans, support for accident insurance and tax relief to the farmers.

Mr Schmidt has hinted in the past that reducing supply is also needed to address the demand supply imbalance, a move that he has been criticised for.

“Farmers and dairies have to match supply and demand better than they have until now,” he said. “We have to achieve an upto-date and flexible way of controlling of supply.”

Germany is the EU’s largest milk producer and, like most countries in Europe, its dairy farmers are operating at a loss.

Mr Schmidt suggested further EU aid was unlikely.

Supermarkets across Scotland are being encouraged to reposition fresh milk as a healthy alternative to fizzy drinks in “food-to-go” deals.

Following a successful farmerled campaigns in Devon and Cornwall, NFU Scotland has written to the nation’s major retailers – including Morrisons, Sainsbury’s, Asda and Tesco – and asked them to make milk a more convenient option for shoppers.

NFUS milk committee chairman Graeme Kilpatrick said: “As dairy farmers, we want to see shoppers given the opportunity to choose fresh, nutritious milk over sugary soft drinks in supermarket chillers, selling it alongside sandwiches and snacks.

“The dairy farming crisis is deepening with the majority of Scottish farmers now receiving less than 19p/litre and, for some, their milk price has sunk as low as 11-12p/litre.”

He added: “Many hard-working, long-established family dairy farms are under threat and this presents an opportunity to grow the market.”

ARLA AIMS FOR CONVENIENCE

* Farmer-owned dairy company Arla Foods is taking its filtered milk brand, Arla Cravendale, into the convenience soft drinks aisle with the launch of a 250ml bottle.

The Co-op will stock the semi-skimmed 250ml bottles of Cravendale milk.

Claire Mackintosh, brand manager at Arla Cravendale, said: “Milk is widely recognised as being part of a balanced diet, and with consumers demanding greater on-the-go drink options we are responding with the launch of Arla Cravendale 250ml, a healthier, natural option to fizzy drinks and juices.”

Northern Ireland Assembly Member Michelle McIlveen has been appointed as the new minister of agriculture – the third Michelle in a row to hold the post.

Ms McIlveen heads up the new Department for Agriculture, Environment and Rural Affairs, which has replaced the old Department of Agriculture and Rural Development following a shake-up of all government departments under the Fresh Start agreement.

The Democratic Unionist politician takes over from former agriculture minister Michelle O’Neill, from Sinn Fein, who in turn had succeeded her party colleague Michelle Gildernew in the same post.

In a statement, Ms McIlveen said she wanted to ensure continued growth of the agri-food industry, but with an eye on the new environmental brief.

“The new assembly mandate provides the opportunity to address challenges around the protection and improvement of our natural environment. In the years ahead we must enhance water quality, conserve habitats and species, and support improve ments in recycling and resource management.”

The Ulster Farmers’ Union said Ms McIlveen would face many challenges in her new role, with the farm income crisis at the heart of any initial discussions.

Other priority issues would include securing more fairness along the food supply chain, easing the path of young people into the industry, opening new markets, ensuring direct CAP payments reach farmers in good time, and scrapping the Agricultural Wages Board.

During the last Assembly, Ms McIlveen served as chairwoman of the assembly’s culture, arts and leisure committee and acted briefly as regional development minister before the election on 5 May.

She was educated at Methodist College Belfast and graduated from Queen’s University with a masters in Irish politics and a certificate in education.

Brussels has effectively run out of tools to help support the dairy market, EU farm commissioner Phil Hogan has warned.

Total private storage aid and public intervention had covered 2.8m tonnes of dairy products last year – at a time when EU production increased by 3.5m tonnes, he told a special meeting of MEPs.

In a bid to help producers, Brussels since announced a range of measures, he said, including an income aid package and measures to take milk off the market.

“We have now effectively deployed all of the tools available in the CAP toolkit,” he admitted.

Controversially, these measures included giving producers permission to get together and agree to curtail milk output – something which would usually breach EU competition rules.

Mr Hogan believed such a measure – known as activating Article 222 – could help rebalance the market.

But industry leaders in countries such as the UK argue that any reduction in dairy output would simply be offset by farmers increasing production elsewhere.

Mr Hogan said: “This is a voluntary instrument and its use depends ultimately on producers and is now genuinely in the hands of dairy farmers who may, if they so wish, join forces and collectively decide to reduce production.”

MEPs attending the debate urged the commissioner to go further. They called for an EU-wide lid on milk production to boost prices, a more efficient intervention system, and fairer balance along the supply chain.

They insisted that the current milk crisis was caused by the Russian embargo on foodstuffs, the end of milk quotas and a drop in global demand, all of which justified an EU solution.

Mansel Raymond, dairy chairman of the EU farm umbrella organisation Copa Cogeca, agreed more action was needed to address the sector’s short-term problems.

Mr Raymond said he was disappointed that EU member states had paid out only about half the aid made available by Brussels under the first EU crisis package.

Article 222 was not being used because there were no financial incentives for it, suggested Mr Raymond.

Delays in direct payments were also causing problems for farmers.

“Possible EU financing should not affect the crisis reserve,” said Mr Raymond. “Producers need their fair share of the margins through the food supply chain.”

With little sign of prospects improving, Mr Hogan said the commission would again increase the amount of skimmed milk powder taken off the dairy market (see Business, p18).