Farmer confidence ‘drops to 1%’ and another sector begins to suffer

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In view of the dairy protests readers will not be surprised to read this news.

The Country Land and Business Association, whose members include landowners, business and professionals in rural areas, owning or managing over 50% of the rural land in England and Wales, have circulated a summary of their Q2 Smiths Gore Rural Economy Index (REI).

It claims that confidence among the farming sector for the next 12 months has fallen from 26% in 2011 to just 1% – a 25% drop and countryside businesses are facing a significant drop in investment.

“These second quarter findings clearly highlight how damaged the rural economy is becoming, due to low confidence and investment,” said CLA deputy president Henry Robinson.

British pig farmers could be the next victim of supermarkets’ price war

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Price instability can threaten any food sector; the Western Morning News reported on Monday that – after a brief period of fair returns – British pig farmers could be the next victim of supermarkets’ price war. Recovery from last year’s shortfalls has been short-lived:                       

British pig farmers are facing a 25% increase in the cost of pig feed ingredients, such as wheat and soya, as a result of drought in the USA. At the same time, intense rivalry is making supermarkets reluctant to pay farmers more to cover their extra costs.

“Trying to get more money from the supermarkets is like getting blood from a stone,” said Andrew Freemantle, who farms 300 sows near Exeter. “It costs farmers £1.70 now to produce a kilo of sausages, but they are only getting £1.50 from the retailers.

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The WMN is reporting the same old story – costs of production plus not covered.