Farm Diary February 11 2009

We are simply not geared up to deal with snow, we don't have the investment in equipment, salt, or the driving skills, winter tyres etc: that countries regularly experiencing snow falls have. It's the same with extreme weather in the summer; no rain for a week and we have a Minister for drought! Today we have a Minister for snow. Do we?

Our country is fortunate in having a maritime climate, which means a little of everything without extremes. Not a bad place to be on the whole, but it does mean that we are badly-equipped for any deviation, where it gets very cold, hot, wet or windy.

As soon as this happens, the radio springs to life 'Stay at home, don't go to work, and don't go out unless you have to' and so on. Mind you when you see the chaos on the roads as your average British driver shows off his skills on snow and ice, you are not going to get far from home before you skid off the road or become stuck in a queue where someone else has beaten you to it.

Milk tankers are not very good in snow, especially the big multi-wheeled articulated monsters that come to our farms these days in the name of greater efficiency!

Well there is not much efficiency when the snow falls, as these leviathans spin helplessly on the flat, and won't look at any gradient. Of course if the roads were cleared and salted it would not be a problem, but country lanes are not top priority, and farm drives are our responsibility.

We are very lucky in that all our roads were well gritted and I have no complaints at all, but I do know of some other farmers in other counties who's country lanes were not salted; until they did it themselves in order to get the tanker in.

We only had an inch or so, but several inches of snow lay only a few miles north. Our tanker picks up every other day, and we have spare capacity in the tank, should he fail to arrive on time. I am checking my insurance (now that it is probably too late), because two days of milk in the tank is worth rather a lot of money.

There is always a bit of a grey area about who's responsibility it is, should the milk not be picked up, but I am advised that it is probably mine. Should the government do more? The popular vote is yes, but are we sure? I can see the 'Daily Mail' headlines screaming about millions of pounds being 'wasted' on preparations for snow that never appears, whilst hospitals (take your pick here) etc: go short on vital investment. Government has done all it should, if one believes that the planet is heating up.

It seems that it is doing just that in Melbourne! Last Saturday, the hottest temperature ever recorded in a Capital city in Australia, was taken in Melbourne at a sizzling 46.4 degrees Celsius (115.5 degrees Fahrenheit).

The combination of high temperatures and hot wind has burnt off much of the non-irrigated grassland on dairy farms, which when coupled with nearly 40% cut in milk price and very high costs for feed and fertilizer, is going to be pretty devastating to their bank balances this year. Raging fires have continued with twenty homes along with many hectares of forestry destroyed in one, which was deliberately started.

I'm delighted to report that British pork sales have increased dramatically following Jamie Oliver's latest TV programme 'Save our bacon'. Waitrose reported sales up 20 per cent, with pork belly up 66%, and pork shoulder joints up a staggering 270 per cent!

Asda reported the highest sales by volume, with independent butchers also reporting significant increase in pork sales following the programme. Tesco has re-introduces pork hock (last seen in their stores in 1998), and reported shoulder steaks up 60 per cent and shoulder joints up 40 per cent. All the retailers hailed Jamie Oliver's 'sensible' approach to the recession, by highlighting how good the cheaper pork joints taste. It will be interesting to see if growth sales are sustainable in the longer term.

As organic sales continue to fall, and all sectors of agriculture are put under serious pressure from retailers, there is a serious question of balance to address. Tesco CEO Terry Leahy, and ASDA CEO Andy Bond, both presiding over very successful retail businesses, ruthless in their drive for efficiency, and lowest cost produce to their consumers, are slashing prices in their stores.

They state that the consumer decides what is wanted, and if its lower prices, they will deliver that and their suppliers will adapt. The problem with such an approach is that it is very short term in its approach, and although many consumers are suddenly hard pressed due to the recession, driving suppliers and farmers out of business for short term gain, is a poor strategy for the future.

Retailer's margins seem immune to all market conditions, and are maintained regardless, as suppliers of fresh produce (for example), who at the moment are absolutely crucified by retail buyers are given no quarter. British fresh produce has fallen 20 per cent, and if this continues we will import more and more, which makes little sense to anyone. The drive to 'budget' own label (up 33per cent in the last twelve weeks) is another worrying area, as branded foods suffer, and investment in new products are falling.

There needs to be a balance, as animal welfare, environmental issues, sustainable agriculture and food security cannot survive in this climate unless retailers recognise that a fairer approach to share of margin within the supply chain is needed.