Have been back in New Zealand 2 weeks now since having 4 weeks in the UK.
Since my return, many people have asked me the same question; What did you learn ? Seems a simple enough question, but the answer isn't easy to define.
Reading through the biographies and notes from the WCF AABM course ( I"m getting good at acronyms) I realize we had around 45 speakers over the three weeks, who presented on a variety of subjects.
So my answer is that I have learned plenty, what do you want to know and Ill try to help!
My thoughts since my return to NZ, have been on some of the topics we spent considerable time on for example;
CAP Reform and the uncertainty it brings to the UK farmers. Many of the delegates see the Single Farm Payment as a social payment and feel it should be directed to the areas of society that need it.At around 230 pounds a hectare, it is a huge part of a farms income. it does however distort land values and contract farming agreements.
Within the group it was felt that these payment would or even should be phased out. Capitilising three years of payments was seen as a way of softening the blow and allowing time for adaption.
Being the only Kiwi on the team, I gave an overview ( on more than one occasion) as to how agriculture in NZ adapted to having SMPs taken away in the '80s. Yes it was tough for a few years and people did walk off the land but I don't think any farmer in New Zealand wants to go back to that system.
I do believe that the Single Farm Payment is making UK agriculture complacent and unmotivated to become more profitable. This view is shared by Paul Adam an Australian colleague on the course who is more than happy to see the support in the UK continue as if it is discontinued, UK agriculture will become more competitive in the market place over time!
That leads me to another point;
Value chains or supply chains were something that came up often.
There is a trend for the supermarkets to be seen to be more involved in the production of food, and offer trace ability etc. This adds cost to food production and being told that having QA systems and the likes give us "market access"simply isn't enough.For it to be a true value chain means that everyone in that chain gets a fair and transparent share of its value.
One of a Supermarkets biggest fears is empty shelves, now I'm not suggesting that farmers should hold them to ransom, but I do think farmers are at times their own worst enemy because they are individuals by nature.
We need to stick together so as not to get picked off one at a time by the buyers of what we produce.
Interesting to note that a dairy farm we visited in Gloucestershire was supplying milk to a prominent supermarket chain through a processor, had several compliance hurdles to overcome to the extent that his milk cost 4p/litre more to produce. For his effort, he received and additional 5p/litre for his milk.
Hardly worth the effort when you consider the fact there is no contract as such, so there is potential for him to loose his market at any time !
Current state of play on farm in the UK
I got the chance to stay with a couple of guys from the course during my time in the UK while they were both arable farmers and their problems related more to that industry, the weather was the biggest issue, with double the annual rainfall in the last 12 months,meaning last seasons yields have been knocked around. A trying harvest then led to difficulties establishing crops in the autumn,and getting herbicides on at the appropriate time proved to be near impossible, leaving some crops looking very much the worse for wear coming in to early spring.
Other issues facing them were the continual loss of chemicals to legislation, limiting the ability to deal with pests in a economic way, blackgrass being one of the worst from what I saw. Definitely something we don't want in New Zealand.
Livestock farmers are struggling to be profitable, indoor systems, high cost of feed and the high cost of compliance being major factors.
NZ lamb is perceived as undercutting the market also, and I cant blame UK farmers for thinking that way when you see NZ lamb on the same shelf as UK lamb in the supermarket and UK is 40% more expensive.
I am assured that is to to with specialling, promotions and lost leaders etc. but does not paint a good picture.
Enough of the negative stuff !
Next time I'm back in the UK it will be summer and the outlook will be quite different I'm sure.
As I have said before, had a great time on the Worshipful Company of Farmers Advanced Agricultural Business Management Course, made a lot of friends and learned a lot - just ask me a question !
Anyone who gets the opportunity to be part of it should grab it with both hands.
Four days till the New Zealand Nuffield Scholars head to Toronto....
