Blow for milk quota leases (From Gazette & Herald)

Blow for milk quota leases

DEFRA confirmed last week that non-producing quota holders (NPQH) will be forced to get rid of their milk quota following a ruling from the European court in the summer that "quota can only be transferred back to an active milk producer at the end of a leasing agreement".

The implications for a lot of NPQHs are serious, if not terminal.

About 10pc of total milk quota in the UK is held by NPQHs and that represents about 1.5 billion litres.

It is estimated that around 1,000 milk producers rely 100pc on leasing in quota and they will all have to address life after leasing has gone.

Currently the amount of quota leased every year is about three times that which is sold.

The price of milk quota has dropped steadily since the court decision from around 18p/litre to its current level of 13p/litre.

Some pessimists think that if there is panic selling then the price could drop as low as 8p/litre by the early new year.

There remains the question of what to do if you are an NPQH, and certainly the time scale for introducing the new regulation is critical.

Most pundits think that it will not happen before March 31, 2004, and we therefore have some time to dream up an accommodation.

One idea is that an NPQH could come to a binding arrangement with a milk producer and thus secure mutual benefit.

Anyway, it will provide some interesting thoughts for Christmas.

Russian grain threat

David Sheppard tells me that the Three Wise Men will not be on their own travelling from the east this Christmas as Russian grain ships try to beat the January 1 deadline for the imposition of import quotas by the EU.

Russia and the Ukraine have enjoyed two wonderful harvests in succession and they have targeted our traditional wheat buyers in Italy, Spain and Portugal, who have been able to buy large tonnages of good quality grain at prices that have completely undermined the UK market.

The former Soviet farmers are apparently quite happy to sell their wheat at around £30/tonne ex farm and with average yields below three tonnes to the hectare, it is easy to understand that they are a significant threat to western European farming.

The EU Commission is attempting to restrict further large scale importation by imposing fixed tonnage quotas from January 1, 2003, although it is still doubtful as to whether these will be effective, bearing in mind that the EU itself is a net exporter of wheat and will have to compete with these very same Russian ship loads in the big wide world.

It may be seasonally uncharitable, but I suspect some cereal barons will be hoping they don't have a third good harvest in a row which would further eat into out export markets.

Festive thoughts

I must start by reflecting on the success of last week's Fatstock Show and congratulating all concerned including, Gazette & Herald editor Bob McMillan.

Through the good offices of Alice Thompson, the auctioneers provided a carnivorous buffet with a collection box for the Macmillan nurses. I am pleased to tell you that £137.46 was raised.

French letter

Robert Sturdy, our MEP farmer from Wetherby, has written to President Chirac enclosing an enormous invoice for £29.4m due to British farmers in penalty fines for refusing to allow our beef to be sold in France.

If he wants some help in getting paid, perhaps he should use the Mugabe Debt Collection Service, which I understand is very effective.

DEFRA loses FMD case

It is satisfying to see that a Herefordshire farmer has won a legal case against DEFRA for failing to pay adequate compensation for animals slaughtered 18 months ago in the FMD crisis.

The most interesting aspect of the case is that the Government refused to pay the Slaughter Premium, claiming that it had already been taken into account in the valuation.

This was clearly not so and I had the same problem doing a similar compensation valuation three months ago.

The outcome is that the man has to be paid his slaughter premium in addition to the valuation and this is good news for the future.

Whitty rapped over imports

I was appalled to read that witless Whitty has declared that the risk imposed to our livestock from illegal meat imports was extremely small, and deserving only the level of Government resources that the small risk justified. He did agree that it was commercial imports rather than illegal ones that posed the biggest threat.

You may remember in my article a few weeks ago I told you that only 5pc of the carcasses were inspected at the port of entry and this is clearly unacceptable.

After putting us through the FMD debacle last year, Lord Whitty's remarks were outrageous and I was delighted to see the Farmers' Union of Wales give him a real slating.

Someone said the other day it's hard to dislike Lord Whitty but it's well worth the effort!

A shilling for the meter

We have had a dreadful few days at York Livestock Centre with a JCB cutting through an underground cable and throwing us all into darkness.

My old friend Holgate Illingworth sent me a postcard reading: "I went to the Livestock Centre today, especially to have my hair cut. There were no lights and I enclose a shilling to top up the meter!"

Market report

Tuesday's market saw 128 cattle, including 30 OTM, 669 sheep, including 41 ewes.

Cattle steers light to 112p/kilo B & J A Gray, Fryup, ave 97.5p/kilo; heavy steers to 117p/kilo E Woodmancey, Yatts, ave 97.3p/kilo.

Heifers light to 96p/kilo D J & E B Sunley, Nawton, ave 89.4p/kilo. Medium to 125p/kilo G I Marwood, Harome, ave 101.2p/kilo. Heavy to 119p/kilo G I Marwood, Harome, ave 103.2p/kilo.

Bulls Continental light to 96p/kilo D J & E B Sunley, Nawton, ave 95.5p/kilo. Medium to 101p/kilo P & I Beal, Settrington, ave 96.3p/kilo. Heavy to 112p/kilo F H Fairburn, Rievaulx, ave 95.8p/kilo.

Black & white bulls to 83p/kilo ave 79.5p/kilo.

Standard lambs to 110.2p/kilo K Clark, Little Barugh, ave 108.1p/kilo. Medium to 112.6p/kilo P W Nettleton, North Dalton, ave 106.9p/kilo. Heavy to 109.7p/kilo G Belt & Son, Normanby, ave 104.5p/kilo. Overweights to 101p/kilo, ave 101p/kilo, C B Jacklin & Co, Yatts, ave 97p/kilo.

Ewes to £62 M Bell, West Lutton, ave £42.

Please note our next fatstock market will be on Monday, December 30, at 12.30pm. For further details, ring the office on (01653) 692151.

Updated: 11:13 Wednesday, December 18, 2002