Land of opportunity?

In 2000, the future of farming as a viable business sector was questioned by Christine Gwyther, the then agriculture minister for the Assembly when, in examining the impact of farming on Wales, she controversially stated that it made almost no contribution to Welsh prosperity.

Since then, there has been a recovery of sorts. Whilst the contribution of farming remains very low in overall terms, the amount of prosperity generated by agriculture itself has grown by 26 per cent in the period 1998-2004, as compared to only 1.5 per cent for our manufacturing sector. In certain parts of Wales, such as Powys and South West Wales, it still accounts for over 6 per cent of the overall business prosperity generated by those two regions.

According to Assembly statistics published last week, the beef industry has expanded by 31% in the last decade and the dairy sector by 10 per cent, although sheep farming has declined in numbers.

To some extent, the industry has been helped in its recovery by the £37 million of grants made available through the Objective 1 programme. This has supported schemes such as Farming Connect, Agri-Food Development Schemes, the Processing and Marketing Grants Scheme and Farm Business Development Plans, all of which have enabled farmers to move up the food chain and develop higher quality produce for new markets.

This is not say that the farming community does not face considerable challenges. For example, with 40 per cent of food being eaten in the UK being accounted for by cheap imports, Welsh farmers are finding it harder and harder to compete.

In addition, the squeeze by supermarkets on supplier prices has meant whilst the price paid to the farmer for litre of milk has fallen by 6p, the average price of milk in supermarkets had gone up by 8.8p per litre. It would not be understatement that ensuring that Welsh food gets access to markets at a fair price is a challenge that will require the continuing support of the Assembly Government over the next four years.

However, there are also signs on the ground that producers across Wales are themselves taking responsibility to deliver success for their industry, and during the last few weeks, a number of examples of good practice have been publicised across the farming press.

In West Wales, a group of ten young farmers have succeeded in persuading Marks and Spencer to order high quality lamb from their farms, which is a deal which will secure them with a premium fixed price over the next six months for their produce. Unlike other farmers who merely produce meat for a processor, these ten agri-entrepreneurs realised that they would have to develop a product for which potential customers would compete to put on their shelves in order to remain sustainable in the long term.

Similarly, there was also news of a Pembrokeshire farming family who had diversified by selling organic home reared meat direct to the public. Pembrokeshire Coast Organic Meats, run by Philip and Hilary Rogers, specialises in fully traceable beef and lamb, has taken full advantage of the True Food Marketing Celtic Recipes programme to develop its business. This initiative is another European-funded project which is designed to help Welsh food producers improve their marketing and sales and, as result, this small farm venture has grown its market considerably.

Finally, in North Wales, it would seem that the local market in Ruthin has drawn on inspiration from its past history. Today, it will take place on its traditional site in the market square, with live farm animals being sold in the middle of the main shopping area for the first time in many years. The aim of this event, supported by the NFU, is to encourage people to think about where their food has come from, as well as championing the importance of the Welsh farming industry.

Therefore, farmers are beginning to take control of their own destinies. However, as Gareth Vaughan of the Farmers Union of Wales stated earlier this month, there still remains a need for a robust and properly financed commitment to agriculture and rural Wales.

Whilst there is certainly scope for the farming community to develop further, as these three examples have shown, it is critical that the agricultural sector is given the right type of support to do so. More importantly, it needs to be allowed to get on with the traditional role of producing the high quality produce which brings real advantage in the marketplace and which sells Wales to the world as the centre for agri-food excellence.