‘Understanding what the market wants’

A group of farmers in Scotland, who banded together to negotiate the first post Milk Marketing Board milk price contract, consider supply chain collaboration rather than negotiation is the key to seeking fairer prices.

Dairy farmer Rory Christie tells me that older farmers, attending AHDB’s recent Lothians monitor farm meeting, of his own experience setting up the Milk Suppliers Association (MSA), a co-op which supplies Lactalis.

The MSA also secured the first negotiated milk price contract since the Milk Marketing board was disbanded.

He said: “It was through working with Lactalis that we were able to secure a negotiated contract, rather than a discretionary one. It was through our collaborative work that we helped secure significant cheese contracts -which are hugely important for local suppliers and the community - but we didn’t get there through blaming the big companies for not paying us enough, or taking an adversarial approach.

“We recognised we had very little power, which meant there was little to be gained from negotiating. Instead, we got there through starting discussions and working out how we could work together to benefit both parties.”

Stephen Young, who works with the Scottish Agricultural Organisation Society, agreed collaboration to be the best way forward.

“What we need to be asking our customers is: What do you need from us that allows you to pay us a premium? And then we can work on how to supply it.

“That is what the Milk Supply Association has done, as well as other successful co-ops like OatCo,” he said.

But developing those relationships isn’t easy and takes time and perseverance. Christie and his colleagues have spent three years working on a supply management system, which aims to bring long-term stability and decrease volatility.

He said: “This system ensures the MSA’s milk volume is pooled, so that we are viewed as one farm rather than 143. We agree a production limit, we will only take a hit if we overproduce and it will be up to us as farmers to guard against that - I’m nervous about it, but it should protect individual farmers and help the company balance supply

“It takes a long time to work out systems like this which benefit producer, processor and retailer, and you need to be exceptionally determined -but, it is worth it.”

Monitor farmers Bill Gray and Peter Eccles both recognise the value in developing relationships with the supply chain.

Peter says: “Working more closely with the supply chain in developing niche premium products would be really exciting; it is an area I am particularly passionate about and wish to explore.

“Understanding more fully what the market wants and delivering such products consistently to specification would be the challenge.

“By working cooperatively with other farms, we could develop ways to ensure our target market is supplied 12 months of the year - removing the need for one business to supply all year round.”

The Lothians Monitor farm is a partnership between neighbouring farms Saughland and Prestonhall - the aim of the monitor farm programme is to help improve the productivity, profitability and sustainability of Scottish farm businesses.

Become a mover and shaker!

The NFU in Wales is extending an invitation to proactive, enthusiastic young farmers to join its Next Generation Policy Group.

A cross section of farmers, aged 40 and under, from all counties are invited to join a second group working with the Union’s policy advisers and officeholders, on key policy issues, including Brexit and rural development and will also get the opportunity to meet with government at all levels.

Each group works for a two-year term which provides an unique opportunity to engage with top decision makers, as well as the opportunity to meet similar groups in Ireland and England.

Annie James, a member of the current group, tells me: “I wanted to get involved with the Next Generation Policy Group as I felt that the younger generation need to be part of the conversation at all levels of the industry, and therefore the Union.

“The group not only enabled this, but leads to integration into other policy groups and boards and will help develop and filter informed younger generation farmers into the broader work of the Union on our behalves.”

Also the newly-elected president of the NFU in Wales, John Davies said: “Our Union is committed to working with the younger members of the industry. Being part of the Next Generation Policy Group is a great opportunity to get your voice heard.

“Those interested in applying, or know someone that is, should let us know by the end of this month.”

Time costed

Addressing 650 delegates at last week’s Irish Grassland Association Dairy Conference, David Kerr, related how he milks a herd of 155 cows under a spring-calving system in Co. Laois yet works just 20 hours per year for each cow in his herd.

Quite obviously he’s at the top of his game when it comes to efficiency and, when compared to his peers, he fits firmly within the top five per cent of efficient farmers.

The 20 hours per cow figure is more than 50 per cent lower than the average number of hours worked by farmers surveyed in a recent labour study.

David outlined the practices undertaken on his farm explaining that he is farming 64ha - 52ha in one block and 12ha ‘just across the road.’

“Reaching our full potential we’ve grown around 13.5-14 tonnes dry matter per hectare for the last few years but we can never hope to attain 17t on our farm because there’s a fair proportion of heavy soils.

“We’re stocked at 2.6 cows per hectare and the herd EBI (Economic Breeding Index) is 140 euros. The herd’s about 65 per cent crossbred at this stage, after coming from a pedigree black and white herd eight years ago.”

The original aim was for a 500kg cow, producing 500kg of milk solids from a concentrate input of 500kg - “We have more or less achieved that target at this stage, so the bar is going to have to be raised in that regard. But that’s the beauty of farming, there’s always something to go after,” he explained.

It’s the law!

Anyone transporting livestock in connection with economic activity over 65km in distance needs to hold a Certificate of Competence to conform to regulations.

The NFU’s competency workshops are open to members, student and Young Farmer members and cover the transportation of animals on domestic journeys over 65km in distance but under eight hours within the UK.

The price of £35 +vat includes the workshop, test, notification of your results and the Certificate of Competence and, be mindful that passing the test will ensure you comply with compulsory legislation.

A new diet!

Bob and his wife started dieting a week ago.

Bob’s wife proposed that they should have a cheat day each week.

She brought home McDonalds and KFC wings. Bob brought home his secretary.

From his hospital bed, Bob is wondering when men will ever begin to understand women!

Man flu

A researcher at Memorial University, Newfoundland, Canada, analysed relevant research and found some evidence that adult men have a higher risk of hospital admission and higher a risk of influenza - associated deaths compared with women in the same age groups, regardless of underlying disease. Males are reportedly more susceptible to complications and mortality for many acute respiratory illness than women, because they have a less robust immune system.

Think duck

RSPCA research has found that while 88 per cent of people think ducks should have full-body access to water, the majority of farmed ducks can only dip their heads in water. The society is calling on shoppers to ask supermarkets to source duck that has had adequate open water facilities.

Sure thing

A person who never made a mistake never tried anything new.