Grain Trade Welcomes Temporary Relaxation of Drivers Hours Regulations, on Animal Welfare Grounds
Animal feed suppliers have welcomed the temporary relaxation of the enforcement of drivers’ hours and working time rules.
Declan Billington, President of the NI Grain Trade Association and Chief Executive of John Thompson and Sons said “ NIGTA members have been working in close partnership with their hauliers to ensure that livestock don’t go hungry in these difficult conditions.”
He went on to state that in some of the more difficult terrain, farmers have been forced to meet the delivery lorries at the most accessible part of the farm boundary, with a trailer for the lorry to blow into, or taking feed in bags, while others have spent many long hours is sub zero temperatures been clearing laneways to allow feed lorries and milk tankers to access to the farm.
“Given the dependence of pig and poultry farms on compound feed it has truly been an industry wide team effort, with companies like Moy Park sending salt, grit and shovels out with the delivery lorries and, in the worst hit areas, have salting teams out in force supporting the overstretched farmer” he added.
A spokesperson for Moypark pointed out ”When you consider that we need to move some 6500 tonnes of feed per week across our farming base in Northern Ireland this has been a major challenge. Our dedicated haulage partner, Capper Trading, has been doing sterling work with well equipped teams standing shoulder to shoulder with the farmer, clearing difficult roads and tribute must be paid to those teams and to the farmer in going that extra mile to protect the welfare of the livestock.
Declan Billington added “ The temporary relaxation on drivers hours will help the industry get back on track with building enough stock in the country to ensure farms get through this Christmas without experiencing any shortages. The pre-Christmas period is always very busy as we deliver extra feed to tide farms over the holiday period.”
An update on the Rose Energy biomass plant was the subject at the Northern Ireland Grain Trade Association’s quarterly meeting.
Osvaldo Mauro-Hun, Chief Executive, outlined the benefits of the scheme, not only for the poultry industry, but for the entire agri food industry and for jobs in Northern Ireland. The poultry industry is Northern Ireland’s second biggest industry and accounts for around 7,000 jobs. The environmental benefits were also emphasised as the plant will help Northern Ireland to meet the dictates of the European Nitrates Directive.
Osvaldo said “We have spent over six years researching and developing our proposals and have worked with planning and environmental experts to ensure that our planning application is robust and thorough. We look forward to now making our plans a reality and securing the future of the local agrifood industry.”
He went on to point out that similar plants have been operating in America and England for many years with no adverse effects on public health, farming or the environment.
Osvaldo concluded: “We welcome the government’s recent announcement of its intention to approve the Rose Energy plant. This is a win-win project and has received widespread support from across the agri and business sectors as such.”
Rose Energy Meeting September 2010
Purchasing protocols in the food processing industry must change according to Seamus Carr, Managing Director of Vion, Cookstown when he spoke at a recent meeting of the NI Grain Trade Association.
Seamus told the meeting that the company had suffered significant commercial damage from the dioxin incident with helpful but limited recovery from the NI Hardship Scheme from government. He pointed out that only a company with the global strength of Vion who operate in GB, Irish and European markets, could have withstood the financial impact – a small family firm would have been wiped out.
He said “Food processors need to work more directly with their primary supply chain to identify risks and manage them out. Insurance companies are now querying due diligence within the supply chain and the details of supplier contracts. We have to have rigorous quality assurance throughout the food chain
to eliminate risks and bad practise.”
Seamus went on to outline the company’s activities stating that Vion is a farmer’s co-op owned by 18,000 Dutch farmers. Their Cookstown operation processes 21,000 pigs peer week with 12,000 coming from the North and 9,000 from the south. The turnover in the Cookstown business is circa £150 million with 650 employees. Efficiency of scale at 530 pigs killed per hour is necessary in today’s competitive environment .
He commented on the efficiency of the farmers who supply the plant stating that not many years ago 19 to 21 pigs per sow per year was considered a high on-farm throughput but now some farmers are achieving 26 to 30 pigs per sow per year.
Vion would like to see less variation in the quality of pigs but also stated that there was clearly an onus on processors to work with pig farmers to bring this about.
Commissioner Dalli’s announcement on the cultivation of GMO crops allows member states to have their whole country or a particular zone in their country designated as GM free if they wish. The question for farmers is if GM free would return the premium required or if GM regions would have a competitive advantage. It is also felt that the same ruling could be applied to imports of GM feed materials.
Zero tolerance will be even more important as importing GM free from a country that also has a GM area provides a possible risk of contamination. Zero tolerance is also important regarding the importation of not yet authorised GM events into the EU.
A letter from the European feed assocation, FEFAC, and EU feed chain partners calling for the adoption of a technical solution for the low level presence of such GM events has been sent to Commissioner Dalli and Jim Nicholson was asked to give this his full support.
The NIGTA delegation outlined the various factors affecting feed material prices resulting in sharp increases in price. These included the perceived harvest predictions in various parts of the world, and the effects of the bio fuel industry but causing most volatility is fund buying.
The efforts being made by NIGTA to introduce risk based sampling in order to avoid another feed scare like the dioxin scare and to ensure safer feed and thus food for the consumer were commended by Jim Nicholson.
Under the nitrates proposals it was noted that some of items are of concern to farmers, yet the evidence shows that the current proposals have had a beneficial effect. The Rose Energy project and its importance in putting Northern Ireland well ahead of target under the Nitrates Action Programme was also discussed.
Declan Billington, NIGTA President commented “ We were delighted to learn that Jim Nicholson is very much up to speed with the items discussed and is working very hard not only on aspects which concern the grain and feed trade but also for the agri food industry generally.”
Speaking after the meeting with NIGTA, Conservatives and Unionists MEP Jim Nicholson said, “I would like to thank the representatives from NIGTA for agreeing to meet with me and very much welcome the extremely positive and constructive discussion we had. As I stressed during the meeting, we need greater flexibility and speed in approving GMO imports to Europe because the current situation is untenable particularly for the intensive sector. Because a number of Member States repeatedly abstain on Council when votes regarding GMO authorisation take place the entire approval process is being subject to delays which is unsustainable in the long term.”
Vion Meeting June 2010
Global disruption in the supply of feed materials is providing major challenges for local animal feed suppliers, with the late spring keeping demand very strong and severe logistical problems affecting the availability of some key ingredients. As a result feed firms are struggling to source their raw material requirements.
This inevitably keeps prices strong and the trade is facing substantially higher costs to ensure supplies for the coming weeks.
Declan Billington, President of the NI Grain Trade Association commented “ We are hopeful that these difficulties will be short term and we are aiming to absorb the extra costs and hold current feed prices as we do not wish to add to the hardship faced by farmers due to the recent severe weather conditions, especially at a time when they should be able to improve margins due to higher product prices.”
According to Declan, many companies are coming out of their cheaper winter raw material book to face the “gathering storm” of weakening sterling, strikes in Argentina, the alternative “biomass markets” and late turnout of stock, which have all kept materials stubbornly high.
The strikes in Argentina have delayed soya and soya hulls cargos while the biomass markets have put a floor in cereal replacer prices. The late turnout of stock and continued meal feeding has left feed firms chasing scarce materials up and down the length of Ireland.
Looking forward the NIGTA President noted that feed firms are now having to “bite the bullet” and lock in at high prices for the next few months, simply to ensure that material is physically available for spring turnout. With the volatility that remains in currency, commodities and weather, the next few months could remain challenging. However on a more positive note he also believed that as we move past these difficult spring positions, the intensive high soya, high cereal diets may, based on current forward prices/ exchange rates, provide some cost relief as the summer progresses.
Credit Squeeze
He went on to say that even assuming enough cover is taken to supply the market for the next few months, he still had concerns about the farmer’s ability to pay.
“With the banking squeeze on credit at farm level, the feed industry is being challenged to support customers during these difficult times and their ability to provide credit is being stretched more and more” he said. “ The feed industry banks with the same banks as our customers. Moving debt from the farmers bank facilities to our own is driving the industry in the wrong direction. What the industry needs most over the next few months is for the banks to provide sufficient support for farmers to enable them to restore the fertility, health and the potential milk yield of their herds at a time when milk prices are improving.
This spring will bring opportunities for profitable milk production for those who can invest in their cows and maximise production. The ratio of feed price to milk price is currently very favourable and extra litres will add profit to the bottom line. This can only be achieved by businesses that are adequately funded and able to meet their commitments”.
Declan continued “Through maximising use of forage alongside concentrate (which will require up front investment in fertilizer) farmers can make a real difference to their bank balances. The secured lenders can have a key part to play in this recovery and we would encourage them to support their customers efforts to improve profitability over the summer months.”
A competition to introduce some lighter moments into the Northern Ireland Grain Trade Association's December meeting provided much food for thought in addition to some hilarious moments.
'Grain Trade member Peter Davison was the winner of the NIGTA Name the baby competition, where you had to guess names and put captions to photographs of members as children. Peter is pictured getting his prize from Declan Billington, President, NIGTA.
Those present received competition sheets illustrating four members when they were babies and were asked to name them and to provide captions. While Alan Ashenhurst, John Thompson and Sons; Robin Irvine Fane Valley; Alan Bristow, Devenish Nutrition and Claudine Heron, W and R, Barnett provided attractive baby photos they were not always easily recognised and the witty captions gave photographer, Columba O'Hare, who judged the competition, an onerous task. The eventual winner was Peter Davison from James Tolland and Co. and he was presented with his gift by Declan Billignton, President of NIGTA.
NIGTA Christmas Lunch 2010
Feed material prices, GMOs, , risk based sampling and the nitrates proposals were some of the topics discussed by the Northern Ireland Grain Trade Association with Jim Nicholson MEP at a meeting this week.
Commissioner Dalli’s announcement on the cultivation of GMO crops allows member states to have their whole country or a particular zone in their country designated as GM free if they wish. The question for farmers is if GM free would return the premium required or if GM regions would have a competitive advantage. It is also felt that the same ruling could be applied to imports of GM feed materials.
Zero tolerance will be even more important as importing GM free from a country that also has a GM area provides a possible risk of contamination. Zero tolerance is also important regarding the importation of not yet authorised GM events into the EU.
A letter from the European feed assocation, FEFAC, and EU feed chain partners calling for the adoption of a technical solution for the low level presence of such GM events has been sent to Commissioner Dalli and Jim Nicholson was asked to give this his full support.
The NIGTA delegation outlined the various factors affecting feed material prices resulting in sharp increases in price. These included the perceived harvest predictions in various parts of the world, and the effects of the bio fuel industry but causing most volatility is fund buying.
The efforts being made by NIGTA to introduce risk based sampling in order to avoid another feed scare like the dioxin scare and to ensure safer feed and thus food for the consumer were commended by Jim Nicholson.
NIGTA delegates, back row, Fiona McCord; John Cunningham; Alan Bristow and Robin Irvine with Declan Billington, front left, President, NIGTA who met with Jim Nicholson MEP , front right, to discuss a range of topics that are of concern at the moment.
NIGTA delegates, back row, Fiona McCord; John Cunningham; Alan Bristow and Robin Irvine with Declan Billington, front left, President, NIGTA who met with Jim Nicholson MEP , front right, to discuss a range of topics that are of concern at the moment.
Under the nitrates proposals it was noted that some of items are of concern to farmers, yet the evidence shows that the current proposals have had a beneficial effect. The Rose Energy project and its importance in putting Northern Ireland well ahead of target under the Nitrates Action Programme was also discussed.
Declan Billington, NIGTA President commented “ We were delighted to learn that Jim Nicholson is very much up to speed with the items discussed and is working very hard not only on aspects which concern the grain and feed trade but also for the agri food industry generally.”
Speaking after the meeting with NIGTA, Conservatives and Unionists MEP Jim Nicholson said, “I would like to thank the representatives from NIGTA for agreeing to meet with me and very much welcome the extremely positive and constructive discussion we had. As I stressed during the meeting, we need greater flexibility and speed in approving GMO imports to Europe because the current situation is untenable particularly for the intensive sector. Because a number of Member States repeatedly abstain on Council when votes regarding GMO authorisation take place the entire approval process is being subject to delays which is unsustainable in the long term.”
The past three weeks have been marked by a significant increase in international wheat and other feed commodity prices.
“The wheat market has strengthened by £25 per tonne during this period,” confirmed Northern Ireland Grain Trade Association Immediate Past President Garth Boyd.
“Normally one would expect other feed materials prices to follow this trend. And this is now happening. Distillers, Citrus, Hulls, Maize, Palm Kernel, Gluten and Pollard prices have all risen over the past number of days. The average increase across this basket of commodities is in the region of £15 per tonne.”
He continued:
“On the protein side the Soya market has remained unchanged while rapeseed prices have increased by £19 per tonne. This latter figure can be partly explained by the recent fire-related loss of a European crushing plant with a 900,000 tonne annual capacity.”
Garth Boyd went on to point out that uncertainty about the outcome of the 2010 harvest is at the heart of the recent trends witnesses on the world’s grain and feed commodity markets.
“Investment houses have also taken positions, particularly with regard to wheat futures, over recent weeks. And where these institutions lead the markets tend to follow,” he further explained.
“The recent floods in Eastern Europe allied to the very warm and dry conditions in the South of the Continent have forced analysts to downsize the size of the this year’s EU wheat crop by 30 million tonnes, compared with 2009. The poor Spring planting conditions in Canada have added to the current concerns about the magnitude of global wheat stocks over the coming months.”
Garth Boyd continued:
“The reality is that most of Europe’s animal feed manufacturers and bio-ethanol producing companies now trade short when it comes to sourcing the raw materials they need for their businesses. And I know that most local feed compounders have very little long term cover at the present time.”
He concluded:
“At some stage in the very near future we will all have to enter the market to source the commodities we need for the 2010/11 feeding season. And this is why the recent hike in cereal and other commodity prices could have such an important bearing on the compound feed trade here in Northern Ireland next winter.
“Local feed companies had to raise their compound prices at the end of June. But this increase was prior to the significant strengthening of the commodity markets that we have witnessed over recent days!”
by: Richard Halleron
Speech from President, Declan Billington
Historically Northern Ireland has enjoyed world wide fame in Shipbuilding, Textiles and Agriculture. Three industries that drove the once dynamic regional economy of Northern Ireland. However in less than a generation two of these industries, Ship building and Textiles have all but disappeared. . Only one industry has survived – agri food. While shipbuilding and textiles experienced a dramatic decrease last century, and the service sector and Information Technology are victims of the most recent recession. agri food has continued to buck the trend , continuing to grow in terms of Output and Value added and represents £1.7 billion of export sales and adds £900million of value each year to the economy (excluding subsidies).
Co-operation across the industry to continue and support this growth, was the theme outlined by Declan Billington, President of the Northern Ireland Grain Trade Association when he addressed the Association’s annual dinner .
A co-operative agri food effort to lobby government on agri-food issues along with co-operative efforts across the supply chain to enhance standards and thus avoid threats which could close down the agri food industry overnight, were the key points of his speech.
He said “NIGTA will continue to lobby Government on those issues so important to the future of our industry, and most importantly, will work with others from across the industry to create a shift in the mindset of all our politicians. Getting them to recognise the true value of what we have to offer and challenging them to move from words of support to actions that actually do support our industry.“
Secondly it will continue the work of the Past President, Garth Boyd, on further enhancing our Quality Assurance Schemes to better protect us all from those contamination threats that could shut our industry down overnight. Threats like the recent Dioxin or melamine scares have put the spotlight squarely on the agri food supply chain. Government Departments from around the world are now testing meat, poultry and dairy products for many more contaminants, to much finer levels and with much more vigour than ever before.
Declan went on to point out that the design of the seat of Government in Northern Ireland, Stormont itself, reflected the historic contribution Agriculture has made to the economy over the centuries…A visitor glancing up to the ceiling in the public gallery of the Senate Chamber cannot miss the three frescos there. Three Frescos representing the three great industries of Shipbuilding, Textiles and Agriculture which at the time of Stormont’s construction were the powerhouse of the Northern Ireland Economy, then one of the most prosperous regions of the UK and Europe. A place where the skills, enterprise and push of businessmen created globally competitive industries that took on the rest of the world, and for a number of decades, won. Today only one of those industries effectively remains, however it is one we can all be proud of. Agriculture.”
He added “ I have noted the irony of history repeating itself. Standing in the jaws of one of the severest recessions in history, we have seen the demise of the sunrise industries of the Service Sector and IT that were to drive the Northern Ireland Economy forward into a brave new world. Yet Agriculture, Food and Drink combined is still growing in this recession, representing approximately £1.7bn of export sales and adding £900m of value annually to our economy. It may not be a sexy industry but agriculture was, is and always should be a key sector of our economy.”
More importantly however, he believes that of all the major sectors valued by the economists, Agriculture is the most critical. because, through its exports, it continues to inject significant amounts of new money into Northern Ireland, year after year, whilst the other large sectors of Services, Construction, Wholesale and Distribution are only recyclers of the money posted to Northern Ireland by Treasury in London.
“The Executive should be supporting today’s entrepreneurs and businessmen who, have built world class businesses at every stage of our export focussed supply chain. They should be removing the bureaucratic roadblocks that stunt the growth of our industry, and instead, stand shoulder to shoulder with us, encouraging its growth.”
“ The Planning and Environmental Agencies for example, must receive clear direction from our Executive to support businesses that have a responsible approach to the environment, rather than seek to trip them up. To value other peoples jobs as much as they would value their own and to play their part in helping create and retain responsible employment. At farm and business level the beauracratic delays and costs to businesses must be removed if our growth is not to be inhibited and fleeting opportunities missed
“In protecting the environment Northern Ireland can, with one stroke of a minister’s pen implement a reduction of phosphates by half. Through approval of the Rose Energy project we not only protect a globally competitive poultry industry from regulations that could otherwise shut them down , but can avoid a further squeeze on the Dairy, Pig and Beef industries that will feel the pain of tighter phosphate regulation by Europe if this project is further delayed.”
Referering to the second point of his “ Manifesto”, supply chain security, Declan made the point that it’s not always up to someone else to manage our problems for us, but that the industry itself had a role to play in safeguarding its own future. He pointed out other companies in different industries around the world have faced similar challenges to their supply chain and have worked together to eradicate the risk
“ In the aircraft industry, hundreds of companies are tied together in consortiums to make aircraft. If one company takes a shortcut with quality, planes start to fall out of the sky, and all companies in the chain find their business at risk.”
“Is our industry any different? “ he asked the audience.
Referring to the recent crises surrounding Toyota he highlighted that they had only lately learned the hazards of growth without due regard to developing a safe supporting supply chain.
Quoting the President of Toyota who said he was putting safety first, quality second, volume third he reminded the audience that those were the foundations on which Toyota grew rapidly in the first place. By making Safety and Quality the essence of their brand, volume naturally followed to make them one of the largest car manufactures in the world, before they forgot their roots..
“So how do we avoid our industry crashing in the future on the back of some new food scare?” he asked and then went on… “ By working together to enhance, at every stage of our supply chain, our quality assurance schemes, and in so doing to build a robust quality supply chain from Port to Plate. A Fortress Ireland approach that closes the door on the loopholes that lets unassured product in, where all of our sectors commit to a common and exclusive standard, building and enhancing on the best that already exists. A supply chain where end processors require that if you’re not part of the Quality Assured solution then, like the aircraft and automotive industries, you’re not in their supply chain.
Explaining how this might happen Declan pointed out that representatives from all parts of the supply chain, under the guidance of Professor Pat Wall, of University College Dublin and former Chairman of the European Food Safety Authority have formed a working Group to look at this.
“The animal feed sector itself, is tasked with finding a cost effective solution that all in our sector can buy into, a solution that ideally would be an all island solution that does not disadvantage one company over another or one region over another.” he said, noting the close working relationship with the Irish Grain ans Feed Association on developing an all Island Approach.
He concluded “ Over the next few months the NIGTA Executive will work to but flesh on the bones of this concept, learning from the best that exists elsewhere and engaging with stakeholders on how best to take forward recommendations on an industry wide basis, that helps protect us all against the inevitable threats that lie ahead.
NIGTA Annual Dinner 2010
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