Held at the Ivy Bush Hotel, Carmarthen, earlier this week, the annual meeting of members of Carmarthen and Pumsaint Farmers Ltd (C&P) was reminded of the past year of mixed blessings. Mr. Dai Davies, chairman - himself a dairy farmer - said that the milk sector had started the year with prices lower than they had been for four years and morale was at an all time low. However, as the year progressed, prices had risen to an 11 year high! He posed the question: 'How can we as an industry plan ahead given this sort of volatility?' Mr. Davies went on to remind his audience that the difficulty of planning a business - any business - also extends to the huge changes in raw material costs, not least energy, feed and fertiliser. Adding to the quite devastating effect of an already severely depressed price for livestock, especially sheep, it all added up to a very difficult year which had led all farmers to closely reassess their outgoings. Looking on the brighter side, he suggested that there was yet light at the end of the tunnel for agriculture as a whole. Global demand for food was most certainly set to rise rapidly and food security was now an issue back on the political agenda for the first time in decades. Mr. Davies expected that, during the current year, C&P would be reaping further benefits from recent investments and rationalisation with the Haverfordwest store, the acquisition of D. Davies Farm Supplies, developments at Monmouth and the opening next month of the new store at Cross Hands coming to fruition. General manager Graham Hughes reported that the total sales up to September 30 last amounting to just short of £20.5 million showed an increase of £2.79 million on the previous year. Voicing a note of caution he noted that the long overdue rise in milk prices was fast being eroded by increased prices in feed, fertilisers, minerals and most other inputs. Mr. Hughes stated that the increase in fertiliser prices to levels around £300 per tonne was unprecedented and would cause grave concern to farmers and the supply industry. He saw consolidation within the supply industry progressing apace with larger companies achieving cost savings and improvement to service by merger and acquisition - sadly a planned merger with Clynderwen and Ceredigion Farmers last year failed at a late stage which caused uncertainty for suppliers and an adverse effect on sales, particularly in the bulk feed sector. C&P, with a work force of 100, has tangible fixed assets (including freehold land and buildings, plant, machinery and vehicles) amounting to £6.99 million and has a member capital of £7.08 million. It was agreed that a members dividend of 1.25 per cent on sales be distributed.
