Category: Dairy & Livestock

Defra has announced a £4 million support fund for small abattoirs.  Through the Smaller Abattoir Fund (SAF), capital grants of between £2,000 and £60,000 will be available at 40% of eligible costs. There will be a set list of items (this doesn’t appear to be available just yet) that will be funded, but in recognition that each abattoir has different specialisms, requirements and challenges, Defra has said it will consider additional investments that aren’t on the list.  Applicants will be asked to provide evidence that the investment aligns with at least one of the fund’s aims, objectives, and eligibility criteria.  These are to;

• improve productivity,  
• enhance animal health and welfare,  
• add value to primary products,  
• encourage innovation the use of new technologies.  

To help with cash flow, applicants will be able to make up to 3 applications to a total of £60,000 to make the most out of the fund. 

The SAF will be accessible to FSA-approved mobile and static red meat and poultry abattoirs in England only.  The Fund will be open to red meat abattoirs processing up to and including 10,000 farmed livestock units (LSU) per annum (i.e., bovines, sheep, goats, pigs, farmed venison), and poultry abattoirs slaughtering up to and including 500,000 birds per annum (i.e., chickens, turkeys, geese, ducks, capons, hens).  Throughput will be calculated using FSA quality-assured throughput data for the 2022 calendar year.

The RPA will be contacting eligible applicants in the coming days with the official guidance and application forms. They will also share details of webinars to learn more in the New Year.  The application window will be open until 30th September 2024 or until all the money has been allocated to successful applications.

For those who have further questions about applications or the Smaller Abattoir Fund it is possible to email [email protected] or call 03000 200 301 and select the ‘Smaller Abattoir Fund’ option. 

The first cases of Bluetongue have been confirmed outside of Kent.  This follows the first case in a sheep, identified (in Kent) on December 7th.  The latest cases have been found in cattle on a farm near Cantley, Broadland, Norfolk. This brings the total number to 11 animals on 6 different premises.  All animals have been humanely culled to prevent further transition.  Defra continue to advise that there is currently no evidence that Bluetongue virus is circulating in GB and surveillance continues.

A 10km Temporary Control Zone (TCZ) has been declared around the premises in Norfolk.  Following the cases identified on 4th December 2023, the 10km TCZ has been extended to cover the whole of North Kent, the location of this can be found via https://assets.publishing.service.gov.uk/media/656e3dfa0f12ef07a53e01f0/BTV_TCZ_declaration_BTD_2023_01-06_North_East_Kent.pdf

Animal movements out of the TCZ are currently not allowed.  Movements into or within the zone are only allowed under licence.  You can apply for a specific movement licence (see https://www.gov.uk/government/publications/bluetongue-apply-for-a-specific-movement-licence) if there is an urgent and genuine welfare need to move animals, or you need to move animals from:

• a premises within the TCZ to another premises within the TCZ
• the free area into the TCZ permanently (for example, breeding stock)
• the free area or within the TCZ to go direct to slaughter within the TCZ
• the TCZ to go direct to slaughter at a designated abattoir in the free area within 100 miles of the premises of origin

From 13th December, all livestock farmers who export meat to the EU will need to have had an annual health visit from a vet.  Under the new regulations, evidence of a health visit will be required where livestock, or animal products derived from livestock, enter the food chain and may be exported to the EU.  Producers will be required to get a Vet Attestation Number (VAN) (see https://www.gov.uk/government/publications/veterinary-declaration-for-animal-health-visits) which will need to be recorded on Food Chain Information (FCI) documents.

Farmers in England can get their VAN when they receive an Annual Health and Welfare Review (see https://www.gov.uk/guidance/sfi-annual-health-and-welfare-review).  In addition, those who are members of the following assurance schemes (which already require an annual health visit from a vet) are not required to do anything extra.  They are able to use their membership number:

• Red Tractor
• Quality Meat Scotland (QMS)
• Farm Assured Welsh Livestock Beef and Lamb (FAWL)/Welsh Lamb and Beef Producers Ltd (WLBP)
• Lion Quality
• Poultry Health Scheme.

The UK’s largest doorstep milk delivery operation, Milk & More has been sold.  Freshways, the large middle-ground processor has moved into the household delivery market with its purchase of the business from Muller.  Milk & More was originally part of Dairy Crest and was acquired by Muller as part of the overall takeover in 2016.  It has never seemed to sit entirely comfortably within the wider Muller operation, despite significant investment going into the business in recent years.  Whilst milk deliveries remains at the core of Milk & More it has expanded to also deliver a wide range of other groceries.

Legislation to ban the live export of animals has been laid before Parliament.  The Animal Welfare (Livestock Exports) Bill was introduced on the 4th December.  This would prevent the export of cattle, sheep, goats, pigs and horses intended for slaughter (not for breeding) and was one of the Bills announced in the Kings Speech.  It only applies to Great Britain and not Northern Ireland.  It is unclear whether the legislation will get through the Parliamentary process before the General Election next year, or early 2025.  

Production

The AHDB has estimated GB milk deliveries declined by -2.8% year-on-year in October.  Defra’s UK milk deliveries will be available on 30th November.  The wet weather meant many could not take advantage of the good autumn grass growth, having to bring cows in early.  Although some input costs have fallen, others remain high and with current milk prices there is little incentive to push yields.  The AHDB is currently forecasting a -0.5% decline in GB deliveries for the 2023/24 milk year.  Global milk production started to fall year-on-year in August and is now expected to only experience a 0.1% growth in annual production.

Prices

Wholesale markets have seen an uplift over the last couple of months.  These have been supported by results from the GDT events through September and October.  However, at the two auctions held in November the index fell by -0.7% at the earlier one and remained level at the last auction, averaging $3,268.  UK farmgate prices continued to trend downwards in November, but with reduced production and an increase in demand prices appear to be stabilising.  Meadow Foods, Barbers and Wyke Farms have all announced price holds for December.

GB Producer Numbers

In a recent survey carried out by the AHDB, it is estimated that there are 7,500 dairy producers in GB as at October 2023.  This is a decline of -4.5% (350) compared with October 2022.  The AHDB has highlighted the fall in milk price as the ‘major diver’ in the decline in numbers.

GB pig prices have started to decline over the last couple of months.  Before that, finished pig prices had been rising steadily through the first part of the year.  The UK spec GB SPP peaked in August at 221.8p per kg deadweight, some 27.2p per kg more than year-earlier levels.  But since August, prices have been on a downwards trajectory.  The latest price for the week ending 18th November 2023 stood at 213.5p per kg; a marginal -0.1p per kg fall on the week, although still 16.2p per kg above the same week in 2022 and comfortably above the 5-year average.

One of the key reasons for the decline in domestic prices is the fall in pig values across the EU, where prices have dropped by 30.7p per kg since the end of July.  GB prices are heavily influenced by the EU as it is the main supplier of imported product.  Demand for pigmeat has also experienced a decline, both domestically and globally, with the cost-of-living crisis impacting the consumption of most meats.   According to Kantar, the volume of pig meat purchased through retail has fallen by -2.6% for the 52 weeks ending 1st October 2023.  In addition, estimates show supplies have picked up over the last couple of months together with a moderate increase in carcase weights.  All these factors suggest prices are likely to remain under pressure.

Defra announced on 26th November a further four cases of Bluetongue have been found.  The virus has been detected in cattle following active surveillance within the 10km temporary control zone.  The animals were all within 5km of the first finding near Canterbury, Kent back on 11th November.  The cattle will now be culled.  The 10km temporary control zone remains in place and the surveillance will continue, but at the moment Defra has said there is no evidence that the virus is circulating in the midge population.

The Government is undertaking a review focused on ending unfair practices in the egg supply chain.  The full consultation, which closes on 22nd December can be found at https://www.gov.uk/government/consultations/contractual-fairness-and-transparency-in-the-uk-egg-industry   It seeks input from industry stakeholders on transparency, clarity of contractual terms & conditions, and data from the supply chain.  The review will focus on understanding how the contractual arrangements within the sector currently function, and whether there is the need for further legislation to oversee the relationship between producers and buyers.  The review follows a commitment made by the Government at the Farm to Fork Summit held earlier in the year in Downing Street.

The NVZ grassland derogation window for 2024 is now open and will close on 31st December 2023.  Those who farm within an NVZ, and where at least 80% of their agricultural area is grassland, can apply to use up to 250kg of nitrogen per hectare, instead of the usual limit of 170kg per hectare.  The nitrogen must come from grazing livestock manure; nitrogen from non-grazing livestock (veal calves, pigs or poultry) must keep within the 170kg per hectare limit.  Applications need to be made to the Environment Agency, more information can be found at https://www.gov.uk/guidance/grassland-derogations-for-livestock-manure-in-nitrate-vulnerable-zones?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=9d880448-2877-4cc6-8fee-bc764e9c4d23&utm_content=daily