PLAID OUTLINES A THRIVING FUTURE FOR FARMING

Plaid Cymru’s farming mini-manifesto, launched ahead of the Westminster General Election, outlines how Plaid Cymru wants to work to make sure the Common Agriculture Policy works for Welsh farmers. It also focuses on reducing bureaucracy, ensuring that Rural Development Programme funding is used effectively, and that public procurement better supports Welsh farmers and Welsh jobs.

Llyr Gruffydd AM, Plaid Cymru's Shadow Minister for Sustainable Communities, Energy and Food; said:  

"Plaid Cymru is committed to reducing red tape in order to give the industry the flexibility it needs to respond effectively to these challenging times. We would start by scrapping the six-day standstill rule which has served its purpose.

"We have our sights set on improving services in rural communities. We are committed to delivering Superfast broadband to 100% of Wales to ensure everybody is connected and anyone can do business from home.

"We will also fight to make sure rural Wales is brought into the EU's Rural Fuel Rebate scheme which will deliver a 5p cut in the price of fuel to rural areas whose inhabitants are forced to spend a higher portion of their income on fuel than people in urban areas.

"Plaid Cymru understands our communities and their needs. We are fighting to return the strongest ever group of MPs to the Commons to make sure that those needs are served in Westminster."

THE REAL PRICE OF A PINT

Milk prices have crashed under pressure from a combination of rising supply and falling demand, particularly as a result of lower-than-expected demand from China and Russia's ban on food imports. One factor that few people saw coming was Moscow's decision to ban EU dairy products, taken in response to sanctions over the Ukraine conflict, this has led to some 2.5 billion litres of milk not being sold in Russia.

The House of Commons Environment, Food and Rural Affairs Committee has revealed that Dairy farmers are being forced out of business every week by factors beyond their control. The Committee has called for the powers of the government's groceries watchdog to be expanded to cover dairy suppliers; The Westminster government has said that it was doing all it could to help farmers cope with the "volatility of the global market".

Despite all the rhetoric, I don’t expect the current or successive Westminster UK Governments to take any meaningful action to help our dairy farmers (or any of our farmers for that matter). Previous failures to act, I suspect are due to a combination of nice financial inducements from large Supermarkets and a more marked indifference to the agricultural sector.

At the end of the day if we want quality milk and dairy products (produced from UK milk or better made in Wales) then we will have to change the way we buy, then our farmers will get a better deal and we will get a quality product. One consequence of how we buy and how our milk is produced for us and how it is sold to us is that the number of dairy farmers in Wales dropped by a third in five years (up to December 2009) and this was despite repeated warnings that more needed to be done to save the industry.  

Before our farmers, dairy or otherwise, are driven out of business entirely they need action not words. If our governments at all levels (including the as far as agriculture is concerned apparently indifferent Labour in Wales run Welsh Government) do nothing then the future for agriculture may be grim, semi industrial and serviced by cheap (and probably exploited) migrant workers. Industrial milk production much trumpeted by some as the saviour of the dairy industry but it is not without its problems. 

There are waste issues, slurry production being one of them, which can be enormously toxic and environmentally damaging. There are also likely to be animal welfare issues when it comes to industrial farming. Modern cows to produce large amounts of cheap milk, a modern Frisian may produce as much 4 times as much milk as equivalent cows did 50 years but it only has three (milking years) in which to do this.

Historically the old answer to low milk prices or a surplus was to turn excess milk into other dairy products, like butter, cream, cheese and yoghurt's. The problem we in Wales face is that many local Welsh dairies serving our urban centres are no longer in business – some around Cardiff were bought up and sold off for housing and diary operations in some areas relocated outside of Wales. This means that we in Wales miss out, as Dairy products are potentially big business as some of our more successful smaller organic producers have proved.

The development of railway communications during the industrial revolution provided the means for rapid delivery of farmer’s milk to towns and cities and lead to a growth of diary production. The milkman delivered direct to our doorsteps, his near demise came later as a direct result of super market price-cutting which has now, more or less, effectively killed him off. The decimation of rural railways following a Conservative Government (questionably motivated) decision to favour road transport weakened the very infrastructure that had driven an expansion of the dairy industry. 

A 29 or 30 pence (gate price) litre of milk may end up being sold for 15 times as much, people pay good money for ‘health yogurt’ – which with the addition of bacteria, flavouring and a marketing campaign produce healthy profits for the companies that produce them. We have some excellent and very successful companies and producers doing just that, but, this potentially profitable sector of the agricultural economy in Wales is undeveloped. 

As for buying local - around 40 per cent of our yogurt is made in France and Belgium, in 2009 more than 40 per cent of all Cheddar sold in the UK was actually produced outside of the UK. Yogurt and cheese aside; its a pretty similar story when it comes to butter. The bulk of our butter comes from Denmark and Ireland, and this is despite the fact that farm gate prices for milk remain consistently higher in Europe than here in the UK.

We (in the UK) when compared with eleven years ago now import almost half of our butter from abroad, cheese imports are also up, some 60 per cent over the last eleven years (up to 2012). We are importing products that have added-value and are busy exporting the low-value milk products which are then ironically turned into butter, yogurt, etc and sold right back to us. 

This is madness; this is what happens in the developing or third world, not in the first world. In the developing world many countries have little choice but to export their raw commodities cheaply and then have little or no choice other than to buy back manufactured products made from their own raw materials.

Over the last 10 years Supermarkets’ margins (e.g. the amount of the price they take) on milk have doubled. Now with a trend for both the processor and retailer to be the same, we have a situation where they take over three quarters of the price of a pint. We have now reached the situation where in a land once renowned for Dairy farming and with cheap milk, we are becoming a net importer of milk. There is little point in hoping that the Con Dem Government (or a future New Labour one) will get its act together because they just won't.

A FIRST STEP

It has taken far too long and I for one doubted whether Westminster would deliver, but there is now a Groceries Ombudsman who will be able to fight for both farmers, food producers and food consumers. Even getting to this point has been a hard slog for campaigners inside (and outside) of Westminster. Plaid has campaigned extensively on this issue but we are not their yet. What now needs to be done is for the new Groceries Ombudsman (created by the passing of the Groceries Code Adjudicator Bill last week) to be given real teeth to tackle supermarket price fixing (with significant fines) which hits the farmers, the food producers and the consumers of their produce.


Plaid Cymru MP Jonathan Edwards said:

"It is very welcome news that the Government has acted to empower the Ombudsman with the ability to levy fines, as advocated by Plaid Cymru since 2004 when Simon Thomas AM, the former MP for Ceredigion introduced a private members bill.

"This move will benefit the thousands of people working within the agricultural sector, particularly within the milk industry.

"The agricultural industry makes a huge contribution to the Welsh economy and its employees deserve to be treated with fairness and respect.

We are therefore pleased to see the Government take steps to ensure that the supermarkets are forced to deliver fairness throughout the supply chain.

"Recently, the dairy industry has faced a crisis due to a cut in the price of milk, leaving farmers at a loss and paying more to produce than sell.

“It is encouraging to learn that the Department for Business have listened to concerns that their original Ombudsman lacked the powers required to protect farmers. I look forward with interest to seeing the amended legislative proposals in detail."

WELSH MILK?

The agricultural industry makes a significant contribution to the Welsh economy and its employees deserve to be treated with fairness and respect. Yet unless urgent action is taken to tackle the cut in the cost of milk, the Welsh dairy industry will face a crisis that will drive farmers out of business and leave consumers facing a rise in shelf prices.

Plaid having long campaigned for a Supermarket Ombudsman welcomed the Chancellor's announcement that a Milk and Groceries Ombudsman would be established following the recent Budget. Yet many people (and Plaid included) have real concerns that the proposals will fail to give the Ombudsman any real teeth to ensure a good deal for farmers.

The proposed cut of two pence per litre of milk due to be introduced in August would leave farmers at a loss, paying more to produce milk than to sell it. This is wholly unsustainable and threatens one of the Welsh economy's most valuable assets. Any Supermarket of Milk and Groceries Ombudsman needs to take a serious look at the dairy industry and put itself squarely on the side of farmers against supermarkets and their shareholders.

Before the last Westminster General election in May 2010 there was much talk (even from the Conservatives) of the need for a Supermarket (and even a Milk) Ombudsman, when there was a pressing need for votes, since then there has been relative silence from Westminster, save for the Chancellors budget mutterings. The Supermarkets having purchased their tame politicos in the Westminster village (well before the Political Parties and Referendum Act 2000 came in) would be quite happy with a weak Ombudsman, who’s pronouncements they can ignore continue to aggressively pursue ever greater shares of the profit with minimal regulation.

At present one litre carton of full-fat, non-organic milk can cost around 65p (01.02.2012 figures). From this a farmer got between 21p and 28p. Production costs come in at around 28p. No wonder that over the last ten years two thirds of dairy farmers in England and Wales have gone out of business, that it is estimated works out as one dairy farmer leaving the industry every day.

The situation has not got any easier for the farmers or the consumers, especially as we now have to factor in increased transport and production (fuel) costs. When it comes to a fair deal the current milk prices make grim reading as  widespread promotions continue to be offered on liquid milk by the usual suspects. Supermarkets are also widely offering branded and organic milk on promotion – guess who takes the hit for cost cutting – the farmers!

The most recent DEFRA figures, show that the average UK farmgate price stood at 26.98ppl in May 2012 (it was 29.27ppl at the end of January 2012 and 29.38ppl in November 2011). The May figure showed a 0.85ppl (3.0%) decrease on the April average price. Annual comparisons show a 0.6ppl (2.3%) increase year on year. The GB average price was 27.97ppl in May, a 0.49ppl (1.7%) decrease on the previous month and an increase of 1.46ppl (5.5%) compared with May 2011. The Northern Ireland (NI) average for April fell to 21.99ppl, a decrease of 3.00ppl (12.0%) compared with April and 3.74ppl (14.5%) less than the previous year.

We are in the process of losing a critical mass of milk suppliers (something the NFU is only too aware of) and we have reached the point where UK farmers are no longer in a position where they can supply the UK's “core milk requirement” around 13 billion litres per year (2010 figures). In 2009 / 2010 year there was a 15 percent drop in UK Milk prices. If you look at the wholesale prices e.g. Butter, Cheese, Cream, etc the situation is no better.

Over the last 10 years that Supermarkets’ margins (e.g. the amount of the price they take) on milk have doubled. Now with a trend for both the processor and retailer to be the same, we have a situation where they take over three quarters of the price of a pint. We have now reached the situation where in a land once renowned for Dairy farming and with cheap milk, we are becoming a net importer of milk.

We (as customers and consumers ) also some of the blame because we let this happen, if we want quality milk and dairy products (that are produced in these islands from UK milk) then we will have to change the way we buy, if we do that then out farmers will get a better deal. There is little point in hoping that the Con Dem Government (or a future New Labour one) will get its act together because they just won't.

THE PRICE OF A PINT (PART 2)

Before the last Westminster General election in May 2010 there was much talk (even from the Conservatives) of the need for a Supermarket (and even a Milk) Ombudsman, and a pressing need for votes, since then there has been an effective silence from Westminster. One view from this side of the bridge that may be increasingly shared is that the Supermarkets bought their tame politicos in the Westminster village (well before the Political Parties and Referendum Act 2000 came in) so they can continue to aggressively pursue ever greater shares of the profit with minimal regulation.

At present one litre carton of full-fat, non-organic milk can cost around 65p (01.02.2012 figures). From this a farmer got between 21p and 28p. Production costs come in at around 28p. Over the last ten years two thirds of dairy farmers in England and Wales have gone out of business, that it is estimated works out as one dairy farmer leaving the industry every day. The situation has not got any easier for the farmers or the consumers, especially as we now have to factor in increased transport and production (fuel) costs.

When it comes to a fair deal the current milk prices make grim reading as the shelf price for four pints has remained largely static at around £1.27 for 4 pints since February 2011, and widespread promotions continue to be offered on liquid milk in May with Sainsbury’s and Asda offering 2 x 4 pints for £2.00 and Tesco offering 3 x 4 pints for £3.00. Supermarkets are also widely offering branded and organic milk on promotion – guess who takes the hit for cost cutting – the farmers!

DEFRA's annual data showed that the average UK farmgate price (Defra, Dairyco.net) stood at 29.27ppl at the end of January 2012. The GB average price was 29.38ppl in November 2011, 0.29ppl (1.0%) higher than the previous month and up 3.44ppl (13.3%) compared with November 2010. The Northern Ireland (NI) average for November was up slightly, to 28.76ppl, an increase of 0.20ppl (0.7%) compared with October and 1.07ppl (3.9%) more than the previous year.

What's happening is that we are in the process of losing a critical mass of milk suppliers (something the NFU is only too aware of) and UK farmers are no longer in a position where they can supply the UK's “core milk requirement” which is around some 13 billion litres per year (2010 figures). In 2009 / 2010 year there was a 15 percent drop in UK Milk prices. It is no coincidence that over the last 10 years that Supermarkets’ margins (e.g. the amount of the price they take) on milk have doubled.

Now with a trend for both the processor and retailer to be the same, we have a situation where they take over three quarters of the price of a pint. We have now reached the situation where in a land renowned for Dairy farming and where even though the price of our milk is cheap, we are now become a net importer of milk.

As early as 1914 the UK Government recognised that milk was important for nutrition in children, it helped prevent rickets, and provided vitamins. And so the first government attempts to regulate milks supply and quality came about. Pasteurization came in to kill of certain bacteria. We now have low fat milk, slimmed milk, semi skimmed milk, etc – one thing to think about is that full fat milk is only 4 percent fat, low fat milk being 2 percent (or less) and that milk is about 95 percent water anyway.

The banks (pre Mrs T) fell over themselves throwing credit at our farmers to encourage them to (as per Government and the EU policy) to expand their production. Mrs T’s particular brand of Conservatism was never that interested in farming, they were far more enamoured by the iffy money men in the City, so did nothing to prevent the imposition of Milk quotas (or their consequences) the bad times had begun for our Dairy farmers and oddly enough the banks stopped calling with offers of cheap credit.

As consumers we also have to take a share of the blame because we allowed all of these things to happen, if we want quality milk and dairy products (that are produced in these islands from UK milk) then we will have to change the way we buy, if we do that then out farmers will get a better deal. I think that there is little point in hoping that the Con Dem Government will get its act together, wake up and pull the fat (or the milk) out of the fire...because they won't.

THE PRICE OF A PINT (PART 1)

Having successfully avoided the need for any panic (or precautionary) buying during the brief flurry of snow last week I had no need to rush out and try and buy sixteen pints of UHT milk and half a dozen loaves of bread and had no need to fight someone in the supermarket for the last broken bag of sprouts. That aside, but with milk on my mind I wondered why successive UK Governments have failed to take any meaningful action to help our dairy farmers (or any of our farmers for that matter).

I suspect that this is down to a combination of nice financial inducements from large Supermarkets and a more marked indifference to the agricultural sector. As consumers we also need to take a share of the blame because we allowed all of these things to happen. If we want quality milk and dairy products (actually produced from UK milk or even made in Wales) then we will have to change the way we buy, then our farmers will get a better deal and we will get a quality product.

One consequence of how we buy and how our milk is produced for us and sold to us is that the number of dairy farmers in Wales dropped by a third in five years (up to December 2009) and this despite repeated warnings that more needed to be done to save the industry. Our farmers have consistently not received a fair price for the milk they produce, which when compared to the price charged by retailers to consumers, which will sadly not come as much of a surprise to most people.

Before our farmers, dairy or otherwise, are driven out of business entirely then need action not words. If our governments at all levels do nothing then the future for agriculture may be grim, semi industrial and serviced by cheap migrant workers. Industrial milk production has been much trumpeted as the saviour of the dairy industry (and a number of important planning applications are in the pipeline) but it is not without its problems.

There are waste issues, slurry production being one of them, which can be enormously toxic and environmentally damaging. There are also likely to be animal welfare issues when it comes to industrial farming. Modern cows to produce large amounts of cheap milk, a modern Frisian may produce as much 4 times as much milk as equivalent cows did 50 years but it only has three (milking years) in which to do this.

Historically the old answer to low milk prices or a surplus was to turn excess milk into other dairy products, like butter, cream, cheese and yoghurt's. The problem we in Wales face is that many local Welsh dairies serving our urban centres are no longer in business – some around Cardiff were bought up and sold off for housing and diary operations in some areas relocated outside of Wales. What this all means is that we in Wales miss out, as Dairy products are potentially big business as some of our more successful organic producers can prove.

The development of railway communications during the industrial revolution provided s means for rapid delivery of farmers milk to towns and cities and lead to a growth of diary production. The first of the supermarkets (Sainsbury’s in Covent Garden, London, in 1869) sold “railway milk” from churns.

The milkman delivered direct to our doorsteps, his near demise came later as a direct result of super market price-cutting which has now, more or less, effectively killed him off. The decimation of rural railways following a Conservative Government (questionably motivated) decision to favour road transport weakened the very infrastructure that had driven an expansion of the dairy industry.

A 29 (gate price) pence litre of milk may end up being sold for 15 times as much, people pay good money for ‘health yogurt’ – which with the addition of bacteria, flavouring and a marketing campaign produce healthy profits for the companies that produce them. We have some excellent and very successful companies and producers doing just that, but, this potentially profitable sector of the agricultural economy in Wales is undeveloped.

As for buying local - around 40 per cent of our yogurt is made in France and Belgium, in 2009 more than 40 per cent of all Cheddar sold in the UK was actually produced outside of the UK. Yogurt and cheese aside; its a pretty similar story when it comes to butter. Only one of the most popular supermarket brands [Country Life] is actually made from UK milk. The bulk of our butter comes from Denmark and Ireland, and this is despite the fact that farm gate prices for milk remain consistently higher in Europe than here in the UK.

We (in the UK) when compared with eleven years ago now import almost half of our butter from abroad, cheese imports are also up, some 60 percent over the last eleven years. We are importing products that have added-value and are busy exporting the low-value milk products which are then ironically turned into butter, yogurt, etc and sold right back to us.

This is total madness; this is what happens in the developing or third world, not in the first world. In the developing world many countries have little choice but to export their raw commodities cheaply and then have little or no choice other than to buy back manufactured products made from their own raw materials.

EVERY LITTLE HELPS (NOT)

As Tesco begins a whole sale roll down of prices, to (they say) benefit consumers some serious concerns are being expressed about the consequences for our farmers and suppliers. Welsh farmers and food suppliers are concerned that the prices they receive for their produce are going to get driven down, as Tesco will make efforts to avoid cutting its profits.

With Tesco dropping some of its prices and effectively declaring a Price War on its commercial rivals and competitors, the question is whose going to pay for it? The £500 million pound 'Big Price Drop' is an attempt to maintain Tesco’s share of the market rather than grow it. The real question is will the Tesco shareholders or management be the ones who absorb the pain of the cuts? Or the farmers and suppliers?

The National Farmers Union (NFU) Cymru and the Farmers Union of Wales have serious concerns is about the prices farmers get paid for their produce. Their experience tells them that the larger food retailers often expect their suppliers to share the pain of any cut in retail pricing.

Tesco already has what could be described as a fraught relationship with some of the farmers it uses to source its products. The National Farmers Union has talked openly about a ‘Climate of fear’ in the (monopoly) world of modern food retail, where the small producers are too scared to speak out about the abuses that are impoverishing them because they may run the risk of reprisals and lose the only customers there are for their produce.

The Con Dem Government, just like it's New Labour predecessor, has been dragging its feet about the prospect of legislation to create a supermarket watchdog to investigate alleged breaches of the Grocery Suppliers Code of Practice. The code was introduced after the Competition Commission found large retailers were passing on excessive risks and unexpected costs to their suppliers.

Part of the problem may be that the Political parties may have readily got used to some of the perks of having a close relationship with the Supermarkets (or power companies, etc) with their glossy adverts in conference brochures, free food at funded functions, etc. One very old rule is that once you sell your virtue it stays sold, and once you sell your principles they stay bought and the end result is that the fabric of our democracy is damaged or tainted, and nothing in this life is free.

Perhaps a more pertinent question to ask would be what do they (the Supermarkets) get for their money? Or at least what are they seeking in lieu of their donations? Or even when do they get it? The answer may well be a weak and watered down Supermarket Ombudsman - which is the last thing any of us needs, whether as a customer, a supplier or a farmer.

WHAT'S NEXT FOR OUR FARMERS?

With the election over few politicians will be out chasing the farming vote or chasing farmers for that matter. Will Carwyn's Labour lot even try to appear to be the farmers friend or stand up for Wales? Our farmers, despite mutterings to the contrary, are not merely seeking the annual brown envelope from Brussels but for real opportunities to make a living (and a contribution) within the agricultural sector - they need a fair deal.

We in Wales still need take more practical steps to give Welsh farmers a fighting chance of making a real living; the aim of securing 80% of publicly procured food locally by 2015 should still a realistic and practical aim. This is something that could provide the first practical step towards helping Welsh farmers and other producers make the most of the new opportunities that will arise from higher public purchasing of local products.

Our farming communities, still feel pretty isolated and marginalised, the contempt with which the farmers had been treated in the past by Labour and Conservative Governments in Westminster and even in Cardiff Bay prior 2007 used to mirror the neglect of the important agricultural sector, which despite everything still makes a significant contribution to our rural economy.

Any economic failure across the farming sector could (and did) have a massive knock on effect for dependent small businesses and suppliers across the whole rural economy, in the small towns and across the Welsh countryside itself; which is as the living landscape is a result of generations of ongoing hard work by our farming community.

In the past both Labour and Conservative Governments in Westminster (and Cardiff Bay) treated the agricultural sector with indifference. It is vitally important that this attitude at all levels of Government become a thing of the past; much more effort has to be made to market first class Welsh produce within the UK, in Europe and beyond.

We should not forget, that in the 1980's it was a Tory Secretary of State who literally sat on his hands and quietly did nothing when the Welsh Dairy farmers got hammered into the ground by cuts in the milk quota. Never again must any Welsh Minister fail to stand up and be counted and to fail to argue their corner on behalf of Welsh farmers.

That changed with the arrival of Plaid's Elin Jones (who became the One Wales Government Minister for Rural Affairs) - she hit the ground running and was not afraid to meet with and stand up for our farmers and fight for their their interests - this made an immensely refreshing change from what has gone on before. The question is what or who will happen next?

CON DEM CAP CUT

News that the Conservative and Lib Dem plans to cut European farming subsidies over the coming years would spell disaster for the local economy. At the moment the Con Dem government is lobbying the European commission to cut the payments which amount to £280 million in Wales every year which comes in at a staggering injection of £1.4 billion over the course of the next Assembly term.

In a recent response to the Commission, the Conservative and Lib Dem UK government said, "There must therefore be a very substantial cut to the CAP Budget during the next Financial Framework." It's important to remember that one size does not fit all, farming in Wales works differently when compared to large parts of England, so if such a huge amount of money is taken out of the rural economy of Wales, jobs will be lost and many agricultural towns would be decimated.

If the Con Dem plans come into effect it will be a pretty well near fatal blow to many if not most farming businesses in Wales. The UK government doesn't seem to care about the implications of what its saying in our agricultural areas. The hundreds of millions of pounds that come to Wales from Europe every year do not stay in the pockets of farmers - it is the life-blood of farming and rural communities across Wales, and helps to keep shops, post offices and local banks open and keeps people in jobs.

Fortunately in Wales, we have had, Plaid's Elin Jones who (as Agriculture Minister) has fought hard to ensure that Wales' farmers concerns are heard at the highest level in Europe and that the Commission knows how damaging the Tory Lib Dem plans would be for our farmers.

No doubt some Conservatives will cynically deny what their party is trying to do - but we have it in black and white. The UK government's response to the commission says it all - they care nothing for our farming industry and they care nothing for the rural towns that depend on it. Yet another reason to think about voting Plaid twice on May 5th!

GOING LOCAL

The good news for both farmers, suppliers and consumers is that the amount of Welsh-produced food bought by public sector bodies across Wales has risen over the last few years. A survey commissioned by the National Assembly Government has reported that almost half of all food and drink bought by schools, hospitals and local authorities in Wales is now of Welsh origin, while the amount of locally-produced food bought by the public sector has risen by 65.8% in the last six years.

The 2010 Welsh Public Sector Food Purchasing survey reveals that Local authorities have increased their purchases of local food by 90.5% over the last six years. Key categories include bread, milk, fruit and vegetables, ready meals, soft drinks, dairy products and water. The NHS (in Wales)  purchases 69% of the food and drink products in Wales, when it comes to milk on average, 50.9% of all the milk purchased by Welsh local authorities for schools is locally-produced. 

When it comes to Welsh purchases in higher education, accounted for 41.3% in 2009, compared with 28.7% in 2003, in the field of further education some,e 39.6% of purchases were of Welsh origin, up from a previous figure of 16.8%. The survey reveals that the only organisations to have bought less Welsh food than previously were the MoD and the Welsh Police Forces, which saw a 0.4% decrease in Welsh origin purchases.

One of the priorities of the Welsh Assembly Government, that was set out in One Wales was a Local Sourcing Action Plan, to encourage local procurement of food and drink by the public sector. The plan to encourage more local purchasing which will leads to money being reinvested in local communities and local businesses. This also leads to a reduction in food miles, reduces carbon emissions which helps to fight climate change. 

The Plaid driven One Wales government strategy has begun a process that should lead to real social, economic and environmental benefits for our communities beginning the process by keeping the money spent in the local economy. This commitment to sustainable development is a good example of how local investment can provide a range of benefits across the whole of Wales benefiting local farmers, local suppliers and producers and local people.

IT'S ALL GONE QUIET OVER THERE?

During the last Westminster campaign - prior to polling day - especially in a rural constituency, every candidate who was out chasing votes tried to appear to be the farmer's best mate. The same was probably true across rural constituencies the length and breadth of Wales and the rest of the UK - yet, our farming communities, despite this welcome warmth have been pretty isolated and marginalized by the politicians, the contempt with which the farmers used to be treated by the old New Labour Government (and previous Conservative governments) in Westminster - this was something that was mirrored until relatively recently in Cardiff Bay certainly until the arrival of Plaid in government and Elin Jones, the Plaid driven One Wales Government Rural Affairs Minister.

Now that the dust has settled and the deals have been done, we have a Conservative / Liberal Government and the question should be what are they going to do for the farming sector? The Conservatives have spent years appearing (with less and less effort on their part admittedly) to be the party of the farmers, certainly some farmers continue to believe it. Yet, it is worth remembering that not that long ago in the 1980's it was a Tory Secretary of State who literally sat by and quietly did nothing when many of our Dairy farmers got hammered into the ground by cuts in the milk quota.

Never again must any Welsh Minister fail to stand up and be counted and to fail to argue their corner on behalf of Welsh farmers - now at least that has changed for the better - with Elin Jones (AM), the Plaid One Wales Government Minister for Rural Affairs we have a minster who is not afraid to actually meet with and to stand up for our farmers and their interests - this is a refreshing change from what has gone before. During the NFU farmers hustings in the final weeks of the election campaign, when I mentioned the things that Elin Jones and the One Wales Government have (and are) doing to make things easier for our farmers, the comments, the nods and the smiles confirmed that the farmers are more than aware of what's being done on their behalf.

Any catastrophic economic failure across the farming sector will have a significant knock on effects for dependent small businesses and local suppliers across the whole rural economy, in the small towns and across the Welsh countryside itself. The Plaid driven one Wales Government has unlike relatively recent governments in Westminster and Cardiff Bay, stopped treating the agricultural sector with indifference. Most people agree that much more effort has to be made to market first class Welsh produce within Wales, within the UK and in Europe and beyond.

Now, our farmers, despite some mutterings to the contrary by some local Labour MPs who should know better, are not just in the businesses of merely waiting for that one annual brown envelope and cheque from Brussels but for a real opportunity to make a decent living within the agricultural sector - to do this they need a fair deal. We need to take practical steps to give Welsh farmers a fighting chance of making a real living; securing 80% of publicly procured food locally by 2015 is a realistic and practical aim.

This is something that could provide the first practical step towards helping Welsh farmers and other producers make the most of the new opportunities that will arise from higher public purchasing of local products. Yet we need more, a much more co-ordinated effort to create that elusive level playing field for our farmers and a real effort from National and Local government to secure 80% of publicly procured food locally by 2015 – this could provide the first practical step towards helping Welsh farmers and other producers make the most of the new opportunities that will arise from higher public purchasing of local products.

The question remains, as yet, unanswered though, what is the new Conservative / Liberal Government actually going to do for our farmers?

MAKING A DECENT LIVING

I welcome the new report (from the National Assembly's rural development sub committee) that recognises that for our hill farmers to survive and make a decent living that they will need new sources of income. With the right level of support (and encouragement) there may be real opportunities for our hill farmers to diversify into areas such as carbon management, renewable energy, and tourism. The report recognises that there is a need for much more help with planning and research.

The committee's seventh month inquiry wants to change the established view of the uplands as a physical barrier in the heart of Wales. Our uplands have been rightly identified as the "backbone" of Wales. The report also recognises that unless action is taken to stem the flow of young farmers out of its communities then there will be a real rural farming crisis. Assembly members on the committee have recognised that our uplands should be "a resource pool" which the whole of Wales can draw on, not just for food and recreation, but also clean water, clean air and clean energy.

Small scale green energy schemes along the lines of what has been developed in the Green Valleys project in the Brecon Beacons, which generates power from 10 wild mountain streams and aims to make the Brecon area a net exporter of electricity, has won (one of three) awards for helping to a £1m prize for saving carbon emissions at the local level, from Nesta, a lottery-funded body, which encourages innovation in the UK, may provide the key to helping our hill farmers to develop alternative income streams, secure a decent living and stay in the farming business.

The Green Valleys project uses small scale hydro-power which does not rely on a traditional dam, but uses what’s called micro-hydro, which actually diverts up to 50% of a stream's flow into buried pipes that lead to camouflaged generators. The Green Valleys project plans to build 40 more of such micro-power stations. Nesta estimates that with advice from energy advice surgeries, super-efficient vehicles and wood-burning stoves, 13 local communities in Brecon have cut carbon emissions by about 20% in a year.

The Green Valleys project (which was established in May 2009) is a not for profit Community Interest Company based in the Brecon Beacons National Park, which takes ideal geography and topography for small scale hydro-electric generation by making use of the small streams and steep sided valleys within the National Park area. The project was Wales' only finalist in NESTA's Big Green Challenge competition. This is creative thinking, combined with local ownership which is benefiting the local community - another excellent example of people motivating themselves.

FARMING AND FUEL PRICES

The slow but steady increase in fuel costs will have an impact on food prices, it will hit both consumers and producers, with increased prices, falling profit margins and higher fuel bills - something that will hit both production and transportation costs. None of this is good news for either our farmers or us their customers.

Any economic failure across the farming sector will have a significant impact on dependent small businesses and suppliers across the whole rural economy, in the small towns and across the Welsh countryside itself. Most people agree that much more effort has to be made to market first class Welsh produce within Wales, within the UK and in Europe and beyond.

With an election coming, despite Gordon's daily dithering, you can bet on one sure thing, if not on the date of Polling day, and that the fact that, particularly in a rural constituency, everyone out chasing votes will appear like magic and claim to be the farmer’s friend. Our farming communities, despite this forthcoming wave of warmth continue to feel pretty isolated and marginalized, at least the contempt with which the farmers used to be treated by the once New Labour Government in Westminster and until relatively recently in Cardiff Bay (at least until the arrival of Plaid and Elin Jones, the Plaid driven One Wales Government Agriculture Minister) is now a thing of the past, at least in Cardiff.

We, in Wales, cannot afford to neglect of the important agricultural sector, which still makes a significant contribution to our rural economy. And speaking of the farmers old traditional friends, it's worth remembering that not that long ago in the 1980's it was a Tory Secretary of State who literally sat by and quietly did nothing when many of our Dairy farmers got hammered into the ground by cuts in the milk quota. Never again must any Welsh Minister fail to stand up and be counted and to fail to argue their corner on behalf of Welsh farmers.

Now, our farmers need a fair deal and a level playing field where they can make a real contribution. We need to take practical steps to give Welsh farmers a fighting chance of making a real living; securing 80% of publicly procured food locally by 2015 is a realistic and practical aim. This is something that could provide the first practical step towards helping Welsh farmers and other producers make the most of the new opportunities that will arise from higher public purchasing of local products.

Woodlands for Wales

The Woodlands for Wales action plan which (which was launched on 3rd March) sets out how, over the next five years, the Plaid driven One Wales government and its partners will work towards achieving the outcomes of Woodlands for Wales, the 50 year strategy for trees and woodlands. It sets out a 50 year strategy for trees and woodlands, this is a welcome development seeks to encourage the use of trees to help control flooding, this will mean introducing more trees to urban environments – where they can provide shade and improve drainage, as well as a making our towns and communities more attractive places to live and work in.

The strategy aims to increase the demand for timber and other woodland products. This is important because an increase in demand for timber will sustain and expand our forest industry and business sector and help make a valid contribution to our economy and could help to provide our hard pressed farmers with an alternative income stream. The strategy also highlights the use of wood as fuel and timber as a replacement to more energy-intensive materials like steel and concrete, which will help reduce the country’s carbon footprint as trees can store carbon for hundreds of years or more.

What makes our woodlands and trees particularly useful is that they can provide many of these services all at the same time. Through the plans actions, the Plaid driven One Wales Government aims to increase the woodland cover of Wales and to increase the range of tree species in those woodlands, making them more resilient to climate change. Our local woodlands have so much to offer with opportunities for enjoying recreation, improving health and well being, learning and developing skills, supporting small business and developing local communities.

The Woodlands for Wales strategy has recognised how important woodlands and trees are in helping to deliver social, economic and environmental benefits and that they can help with tackling climate change. The action plan was developed by Forestry Commission Wales on behalf of the Plaid driven One Wales Government and highlights the use of wood as fuel and timber as a replacement to more energy-intensive materials like steel and concrete, which will help reduce the country’s carbon footprint as trees can store carbon for hundreds of years or more.

The key here is long term; it makes such a difference to have a minister of the caliber of Elin Jones (AM), who as Plaid Minister for Rural Affairs has the confidence and strength to make long term decisions. And makes no bones about it, this is an ambitious long term strategy which recognises that Welsh woodlands and trees can deliver more benefits through taking bold actions. Our woodlands and trees not only provide the more obvious products such as timber or sites for recreational activities but also the less obvious services such as addressing the effects of climate change and protecting soil and water resources.

TIME FOR A CYMRU CARD

The suggestion that a Cymru Card scheme, a Wales loyalty Card, be created is a good one, which could be linked to existing supermarket loyalty card schemes on the one hand, or ‘shop local’ cards in different towns across Wales. Alternative schemes would be explored with those supermarket groups who do not have a loyalty card scheme, such as Morrisons and Asda.

A number of large supermarkets and other organisations offer loyalty points schemes to their customers. A number of the larger supermarkets already have promotions in place to acknowledge customers who support environmentally friendly or Fairtrade products.

Plaid’s suggestion is for a similar system to encourage customers to buy locally produced goods, as well as Welsh produce overall. The difference is that by tying these loyalty schemes in with a local angle, which offer specific incentives for buying local produce will ensure that even when shopping in larger stores people can do their bit for local businesses.

This is not pie in the sky, as similar systems already exist; in Ireland there is the Shamrock scheme where shoppers can earn bonus supermarket loyalty points for buying home-grown goods. The Scots are looking to develop a similar proposal. The Welsh scheme that Plaid is proposing would provide a huge boost for Welsh food producers and for the agricultural industry as a whole.

This could provide an opportunity to encourage supermarkets, grocers and producers to work together to explore the creation of our own scheme in Wales and give greater prominence to local produce. This scheme should be very welcome in Monmouthshire where we have a host of local businesses who would able to ensure their excellent products are promoted effectively.

Plaid in government in Wales has already taken action to encourage people to buy Welsh produce. Plaid Minister Elin Jones AM, whose government responsibilities include food and farming, launched the Local Sourcing Action Plan last year which aims to get more local consumption of locally produced food - whether it's through public sector contracts, supermarkets or restaurants. She is also developing policy around Community Food Growing - again, looking at more innovative ways of increasing the amount of food locally produced and consumed

This would be an excellent way of boosting the local economy by encouraging customers to support Welsh farmers and food producers, and may start the ball rolling to getting our farmers and food producers a fairer deal with the Supermarkets. A Welsh produce loyalty scheme would have a number of benefits.

A Cymru Card could help encourage healthier eating, help cut down on food miles, and help give our local farmers, our food producers and our local businesses a much needed boost, especially during the present economic difficulties. It will also assure people that they are getting the excellent quality produce that is on offer throughout Wales. and may help to keep money circulating for longer in the local economy.

THINK MILK

The news that some 82.5 per cent of Welsh farmers will receive Single Payments totalling more than £200million from Tuesday, 1st December, which is the first day that the European Commission allows payments to be made, is welcome good news and proof that Elin Jones AM, the hard working Minister for Rural Affairs in the Plaid driven One Wales Government is working hard for our farmers.

In times of financial difficulty, the fact that so many farmers can expect to receive their Single Payment in the first month of the seven-month payment period will help. The success of Rural Payments Wales matches last year’s achievement, in addition to processing 258 Advance payments worth about £5million in mid October to farmers affected by the demise of Dairy Farmers of Britain.

Now don't get me wrong, these are concrete steps to help our farmers, but, more needs to be done, with that in mind I welcome the National Assembly's rural development sub-committee’s call for an ombudsman to help protect and develop the dairy farming industry in Wales and support the call for more to be done to encourage demand for quality Welsh dairy products as has happened already with Welsh Beef and Welsh Lamb.

Sadly the news that the number of dairy farmers in Wales has dropped by a third in five years and the warnings that more needs to be done to save the industry along with the fact that Farmers are also not getting a fair price for the milk they produce, when compared to the price charged by retailers to consumers, will not come as a surprise to most people.

More needs to be done to give our dairy farmers a fair deal and one concrete step could be for our public bodies to increase the proportion of dairy products they procured locally in order to help safeguard milk producers and to give them a fair price for their milk.

AND THEN THERE WERE NONE...

With an election coming, particularly in a rural constituency, everybody (well everyone chasing votes) will appear to be the farmers friend. Our farming communities, despite this are feeling increasingly isolated and marginalised, the contempt with which the farmers have been treated by the New Labour Government (and previous Conservative Governments) in Westminster and latterly in Cardiff Bay (at least until the arrival of Plaid's Elin Jones, the Plaid driven One Wales Government Minister for Rural Affairs), used to mirror the neglect of the important agricultural sector, which still makes a significant contribution to our rural economy.

Any economic failure across the farming sector could (and did) have a massive knock on effect for dependent small businesses and suppliers across the whole rural economy, in the small towns and across the Welsh countryside itself; which is as the living landscape is a result of generations of ongoing hard work by our farming community.

In the past both Labour and Conservative Governments in Westminster (and Cardiff Bay) treated the agricultural sector with indifference. It is vitally important that this attitude at all levels of Government become a thing of the past; much more effort has to be made to market first class Welsh produce within the UK, in Europe and beyond.

Let us not forget, that in the 1980's it was a Tory Secretary of State who literally sat by and quietly did nothing when the Welsh Dairy farmers got hammered into the ground by cuts in the milk quota. Never again must any Welsh Minister fail to stand up and be counted and to fail to argue their corner on behalf of Welsh farmers. Now with Elin Jones (AM), the Plaid One Wales Government Minister for Rural Affairs we have someone who hit the ground running, who is not afraid to meet with and stand up for our farmers and their interests - this makes an immensely refreshing change from what has gone before.

Our farmers, despite mutterings to the contrary, are not merely looking for an annual brown envelope from Brussels but for a real opportunity to make a contribution (and make a living) within the agricultural sector - to do this they need a fair deal. We in Wales need to take more practical steps to give Welsh farmers a fighting chance of making a real living; securing 80% of publicly procured food locally by 2015 is a realistic and practical aim. This is something that could provide the first practical step towards helping Welsh farmers and other producers make the most of the new opportunities that will arise from higher public purchasing of local products.