< Digest Paper - Challenges and opportunities to promote the UK livestock sector

‘Minette runs a tenanted family farm in Wiltshire. The mixed farming business includes a 100 cow continental cross suckler herd, and a small herd of pedigree Herefords as well as sheep and arable. Diversification includes the conversion of a 17th Century tithe barn into a wedding and corporate events venue, and horse liveries. Minette co-founded the campaigning initiatives “Ladies in Beef” and the “Great British Beef Week”.

She has been an NFU member from grassroots through to County Chairman; she served as Wiltshire’s Council delegate and also as Regional Board Chairman for the South West. Minette has also been a member of NFU Governance Board and served as NFU deputy president for four years from 2014 to 2018. Minette is also a Trustee of Farm Africa’

A new dawn for a productive and sustainable UK agriculture

As we have already seen from the conference theme, we are in a time of unprecedented change and opportunity; I want to ensure that we make 2019 a year of action which harnesses this once in a lifetime opportunity to set our future.

At the NFU, my job is often dealing with the unknowns or the uncontrollable, and making that road that gives certainty for others to drive on. I think that has made the role of President of the NFU all the more important at this critical time for our industry and our country.

I cannot stand here without mentioning EU exit, but you will be pleased to know I won’t dwell on it, as we cannot judge the success of EU exit without a vision of where we want to be beyond it. To put it simply, there’s not much point in building a road unless we know where we want it to go.

Key priorities

Avoiding a no deal outcome on the 29th March – we need a deal and the only deal on the table at present is that which the Prime Minister has negotiated with the European Union. It’s not perfect but it allows the UK and EU the time to shape the long term trading relationship we need with our primary market.

Ensuring that we have an Agriculture Bill that is fit for purpose – This should go down as a landmark act for farming’s future relationship with society. Previous legislation has left a lasting legacy – will the same be said of this Agriculture Bill? Will it have the budget to ensure long term agreements can be provided? Who will be able to participate in these schemes? Will the funds be directed towards our farmland?

Making a clear and long-standing commitment, to protect UK farm standards – We have world beating standards for animal welfare and health in the UK. These standards must not be undermined by low cost and poor welfare products, undermining our food values. We will not allow Ministers to chlorinate their conscience in order to sign a trade deal, so they must put it in writing now.

In addition to these three key areas, there is also the very real issue, which many of you might be facing in the room today, of access to labour both now and in the future. Much of our industry both at farm level and within processors is based on the access to foreign labour. We are already hearing of a number of farmers having to make difficult decisions about their future due to a reduction in the number of skilled individuals who are coming to the UK as herdsman. We must find a solution to this both for now and in the future.

Trading with the EU on WTO terms

The UK currently exports £13bn of food and drink to the EU – if we crash out, overnight we move from the free movement of goods with EU partners to trading on WTO terms.

EU tariffs applied to exports

The EU has confirmed that in the event of a no deal, it will apply its existing tariffs to imports coming from the UK. WTO rules mean it could do no less.

Technical restrictions on EU trade

We export around £3.5bn of animals and animal products to the EU each year. In a disorderly exit, the UK would not be on the EU’s list of authorised third country exporters and without that, the trade in animals and animal products would cease overnight. The government is not willing to put a timescale on how long it will take the UK to gain the necessary export status from the EU. It is within the gift of the European Commission, but many close to the process believe that 6 months is an optimistic appraisal and even longer could be realistic.

Uncertainty on free movement and citizens’ rights

The government has not yet made an announcement of what will happen to the rights of EU citizens living in the UK in the event of there being no agreement with the EU.

The government seems unwilling to make a unilateral decision on EU citizens living in the UK, without assurances that UK citizens living in EU countries will receive reciprocal rights and protections.

However, we should acknowledge that the Prime Minister recently said that the UK government has no intention of asking EU citizens to leave the UK in the event of there being no deal. We must never forget that there are people and their families considering their futures and they deserve no less than certainty in writing from the government.

Agriculture Bill

The Agriculture Bill is crucially important for the farming sector. It seeks to provide continuity and stability for farmers as we leave the European Union (EU). Its passage will pave the way for a bold and ambitious new approach to domestic agricultural policy that can be designed specifically for the needs and recognising the unique characteristics of UK agriculture, once we leave the Common Agricultural Policy (CAP).

In fact, it provides fairly broad powers for current and future governments to put in place a comprehensive and effective agricultural policy for the future, reflecting much that the NFU has called for.
Including provisions that support farmers:

  • To undertake important environmental work
  • To improve the productivity of their businesses
  • To manage the volatility and tough market conditions that falls outside their control
  • To strengthen their role in the supply chain
  • To provide greater transparency and data sharing within the industry

But our challenge in the coming months is to improve the Bill to ensure it provides a watertight framework in which government can support farmers as productive and sustainable food producers – with all the accompanying benefits for delivering public goods.

Strategic Priorities – Food

The NFU believes that the Agriculture Bill should be amended to not only support domestic agriculture, but to ensure food security and stability of food supply.

The government has a strategic interest in ensuring a sufficient level of domestic food production and the Bill should ensure that there are powers for the government to support UK agriculture, so it can continue to meet these expectations.

Agricultural focus

We believe the Bill should focus specifically on agriculture, underpinning a farming model in the UK that is sustainable, productive and plays an active role in delivering food production and public goods. Ensuring that future financial assistance, relates explicitly to agricultural activity, farm businesses or farmland. Whether that’s incentivising measures to protect soils, water and air or improving agricultural productivity.

Multi-annual budgets

We believe that the Bill should establish a multi-annual budgetary framework that provides certainty for farmers and allows them to plan and invest for the future.

UK frameworks

The Agriculture Bill must adequately address the issues stemming from devolution and maintain a level playing field amongst the home nations.

International Trade Deals and UK standards

A further issue relating to both the Agriculture Bill and the Trade Bill currently passing through Parliament is the issue of international trade negotiations and respect of UK standards.

The NFUs position on food production standards and post-Brexit trade is clear: our future international trade arrangements should not serve to allow food imports which undermine the high standards that British farmers are proud to produce to and for which the public trusts and values.

We believe that both Bills should ensure that British farmers can continue to produce food to the current high environmental and animal welfare standards of which they are proud, whilst being able to compete on a level playing field with producers elsewhere in the world, without being undermined by cheaper imports produced to lower standards.

Failure to do so would undermine the principles that should be at the very heart of the Bill – an efficient, productive, profitable UK farming sector meeting the needs and expectations of the British public, both in terms of the food they eat and the public goods they value.

Labour

Labour availability is an issue for the whole food chain. 40% of workers in food manufacturing are non UK born. Around 9% of agricultural workers are non UK born.

The NFU have welcomed the fact that the government intends to engage with the farming sector over the next 12 months and we hope to make vital improvements to proposals. The new immigration policy must reflect the economic importance of the food and farming industry to Britain, and a system must be developed that serves sectors of the economy based on need rather than misleading measures such as skill levels.

Celebrating farmer’s environmental efforts

Farming’s environmental performance is always under some sort of scrutiny and the NFU will shortly launch a major new initiative to ‘take back control’ in responding to criticisms to help counter any negativity.

We want to tell our members stories in their voices – to provide a platform to champion their efforts and give an honest and balanced appraisal of the environmental situation on our farms.

This is a significant piece of work for the NFU and I look forward to welcoming many of you to a conference to launch this initiative as well as signposting you to a forthcoming report ‘United by our Environment, our Food, our Future.’

United by Food

We are all united by food and that is the name of our plan to develop a comprehensive food strategy for the UK. My vision of our sector beyond

Brexit is one of a progressive farming and food industry, whose businesses are valued and connected to the health and wellbeing of all consumers and fulfils our moral obligations in a global economy and a changing world.

My vision for farming is therefore one that is inextricably linked to food, people and our planet and we must take our position and future seriously.

We have one planet for us all to feed from yet our industry continues to feel the injustice of environmental and welfare NIMBYism. The EU and our own successive administrations have a history of increased regulation – while exporting our consciences to other parts of the world. It is morally reprehensible to push the bar higher for domestic production, while allowing imports below it.

We need to spell out to Government where we want to be with a united voice and a united vision. That vision has to be about business growth, delivering for citizens and delivering for consumers.

A vision that is supportive of the nation’s health and wellbeing through safe, affordable and sustainable food, serving consumers at every price point.

Standards and Integrity – Preserving our strong domestic standards while guarding against fraud in a volatile world.

Moral Imperative – Affordable food is a modern day success story; the planet needs to feed 67 million extra mouths every year, what is our contribution to this challenge?

Health and Nutrition – Significant dietary imbalances, driven by societal imbalances and nutrition scares are prevalent in the media. We have all heard that we should eat more fruit and vegetables but did you know we also need to increase starchy carbohydrates by 69%. We should not be in the business of demonising certain food groups; there is no such thing as bad foods, only a bad diet.

Respecting Nature – there is an ever increasing need to increase food production globally, while protecting natural resources and biodiversity. The UK footprint is amongst the best in the world. We need to make the best use of our strengths, our natural resources, our skills and capability to deliver for the environment and deliver on food security.

Minette Batters, NFU President
Agriculture House, Stoneleigh Park, Kenilworth, Warwickshire