Rural Review - June 2008

Pheww!!! Another year and another close shave with the rain!! I'm sure I'm not the only one who took advantage of the early summer weather recently & got my silage in nice & dry!

'Silage fever' has well and truly hit us these days, but the unfortunate fact of more fuel increases is hitting everyone across the board more than ever. Contractors' charges have already risen by a third since this time last year. But in the wake of further pressure coming on fuel costs, it's now inevitable that farmers will be facing even stiffer bills as the silage season gets into full swing.

Every day I read or hear another announcement in the media of increased prices from gas to oil; and the latest is electricity. Households are already burdened by record costs as domestic bills have climbed far faster than the official rate of inflation over the past year.

As a dairy farmer myself, I know only too well that we're being hit from all angles! Even the results of the May Northern Ireland milk auction are a blow to local milk producers, who are struggling to cope with soaring feed, fuel and fertiliser production costs.

Dairy farmers costs have rocketed and they are facing major investment decisions to comply with the Nitrates Directive. Producers need confidence to invest in their businesses but instead there is a general feeling that the industry is less well off now than it was twelve months ago. Milk auction prices may be a penny better than a year ago, but our production costs have gone up by approximately five times that amount. These economics simply don't add up to profitable dairy farming!!

Since my column last month in which I expressed concern for pig producers, it has been announced that an initiative, being introduced by Foyle Meats, will attempt to remove the differential between farm gate prices paid for pigs in Northern Ireland and pigs in the rest of the UK. This has been announced at a time when the pig industry in Northern Ireland was reaching an all time low, with a major gap between the prices of pigs in Northern Ireland compared to that of our counterparts in mainland UK.

The Foyle Meats initiative has the potential to make the Northern Ireland Pig Market more competitive and perhaps encourage local competition. Many farmers are waiting anxiously to see if other local processors will follow in similar foot steps, with the aim of improving market conditions.

This is a positive time for the pig sector, but has been long over due!! The quality of Northern Ireland pork and bacon is of a high standard and is retailed in the same markets as GB pig meat.

I, as an elected representative of South Down and as a fellow farmer, can only wait with anticipation to see the benefits reaped by this initiative introduced by Foyle Meats.