Siôn Aron JonesRheolwr Datblygu’r Diwydiant HCC

Cynhadledd Hybu Cig Cymru Tachwedd 2009

Hybu Cig Cymru (HCC) Conference November 2009

Industry Development

• HCC undertakes research and development, dissemination of information and training relevant to each part of the supply chain, to ensure the Welsh red meat industry is in a position to improve quality, increase cost-effectiveness and add value to Welsh red meat products across the whole supply chain.

• Work with producers to enhance returns and ensure a top quality product is provided to the market.

• Develop sustainability within the Red Meat Supply chain.

Current situation (Prices)

60

80

100

120

140

160

180

200

220

J F M A M J J A S O N D

p per kg lw

Source: AHDB

Welsh SQQ lamb prices

200720082009

100

110

120

130

140

150

160

170

180

J F M A M J J A S O N D

p per kg lw

Source: AHDB

Welsh prime cattle prices200720082009

The beef and sheepsectors in Wales• Beef and sheep sector production in Wales plays a

vital part in the rural economy. In 2007 finished sheep and lamb together with finished cattle accounted for 36% of the total value of Welsh agricultural output, worth £337m.

• Wales has the smallest farm holdings in the UK by size at 38.2 average area(ha).

• Red meat provides high quality protein with the average annual consumption of beef and veal; and mutton and lamb in Wales being 5.9 and 2.2 kg per person, respectively.

Current situation (Slaughterings)

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(000 head)

Source: DEFRA

Welsh cattle slaughterings

2007 2008 2009

150.0200.0250.0300.0350.0400.0450.0500.0550.0600.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(000 head)

Source: DEFRA

Welsh total sheep slaughterings

2007 2008 2009

Current situation (Breeding numbers)

3,900

4,200

4,500

4,800

5,100

5,400

5,700

6,000

6,300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(000) head

Source: WAG

Breeding ewe numbers in Wales (1998-2009)

230

235

240

245

250

255

260

265

270

2005 2006 2007 2008 2009

(000) head

Source: WAG N.B. Figures are for cattle over 2 years

Beef breeding herd in Wales (2005 - 2009)

Industry Development

Siôn Aron Jones

Rural Development Plan

Dewi Hughes

Technical Development

Lynfa Davies

Farming Connect

Dylan Jones/ Mark Needham

Industry Development

Industry Development

• Technology transfer

• Training

• Communication

• Reducing unit cost of

production

• Improving flock and herd

health

• Genetic improvement

• R&D

Rural Development ProgrammeActivities

RDP Activities

Genetic Improvement

- Beef

- Sheep

Technology Development

- Technology Transfer

- Communication

- Training

Economics and Benchmarking

- Data Collection

- Analysis

- Dissemination

Influencing the Welsh flock

Top genetics

Breeding flock

Lamb Supply

Abattoirs/ Livestock Markets

Retailers/ Consumer

Improved maternal ability

Improved carcasetraits

Improved commercial performance

Influencing the top genetics will have dramatic affects the supply chain

Meeting marketrequirements

Technology Transfer, Communication and Training

Training

• Carcase selection» Abattoir» Livestock markets» Shows/events

• Information Feedback» Develop feedback system» Feedback to farmers from abattoir

Technology Transfer, Communication and Training

Communication

• Electronic communications » Web

• Publications (Educational, Health and Nutrition)» Booklets» Fact sheets» Invitations

• Industry Meetings

• Events» Study tours» Royal Welsh , NSA» Consumer demonstrations

Communication of results

• HCC website• Farming Connect• Press articles• DVDs• Booklets and factsheets• Shows and events

Economics and Benchmarking

(2008 – 2011)

To improve the industry’s level of understanding of market trends and to influence consumer behaviour

– Data collection, analysis and dissemination– Business efficiency– Market prices– Consumer trends– Demand projections and market size– Competitor activities and global trends

– Enable informed decision making to determine priorities and the direction of individual businesses (producers, processors and retailers)

Farming Connect Red Meat Development Programme

10 Demonstration farms 20 Discussion groups 3 Development farms

Demonstration farms - role and function

Farms are provided with access to support and expert advice including:-

• FBS management accounts• Vet heath plans • Grassland specialists• Nutritionist

The programme also provides farmers with new technologies, to and encourages the use on new and best practice

Discussion groups

These have several roles • Such as raising awareness of national issues within the industry

BTV, TB, EID• Intelligence - members supplied with regular Market bulletins,

text alerts, parasite forecasts.• Hendy – This group had an on farm practical meeting looking at

causes of lameness in sheep.• Over a 1000 group members.

Shows and Events

• Knowledge transfer officers are present at the main events in Wales provide information to the wider farming community on Red meat and Farming Connect activities.

Welsh Beef Quality Improvement Project

• 330 Top 10% bulls funded(40% of cost up to £2,500)

• 650 Farmers attended training meetings– Health management– Breed improvement– Environmental management

Why does HCC fund R&D projects?

• HCC considers R&D to be an important aspect of developing the Welsh red meat industry and it is a key element of the Strategic Action Plan for the Welsh Red Meat Industry.

• Portfolio encompasses all

sectors of the red meat supply chain

Funding sources

• Levy• RDP• Collaboration with other levy

boards• LINK projects

Project areas

• Genetic improvement

e.g The effect of TM-QTL and other QTLs on lean meat yield and meat quality in sheep and its evaluation using VISA

• Environmental issuese.g Breeding of forage grasses and legumes to enhance the sustainability of

grassland agriculture in the UK

• Animal Healthe.g Breeding for resistance to footrot

• Product quality and safetye.g ProBeef – Plant based strategies to improve the nutritional value of beef for

the consumer

Red Meat Roadmap for Wales

• In accordance with the objectives of the Strategic Action Plan, HCC has initiated work on the development of an environmental impact ‘roadmap’ for Welsh red meat production.

• It will seek to measure the impact of the sheep and beef supply chains on the environment and investigate ways the industry can mitigate that impact without compromising individual businesses.

• This roadmap is also being developed with the aim of positioning the Welsh red meat industry to comply with climate change legislation whilst ensuring continued economic sustainability.

Strategic Context

• The One Wales agreement commits the Welsh Assembly Government

to achieving annual greenhouse gas emission reductions of 3 percent per year from 2011 in areas of devolved responsibility.

• By 2050 the UK Government target is to cut 80 percent (on 1990 levels) of all greenhouse gas emissions.

• The Strategic Action Plan for the Welsh red meat industry recognises the need for the sector to be in a position to comply with climate change legislation whilst ensuring continued economic sustainability.

• An opportunity exists for the industry to adapt systems to cope

with climate change and mitigate the industry’s impact.

Progress

• HCC believes that the most significant advances in reducing greenhouse gas emissions can be made by improving production efficiencies through genetic improvement of livestock, improving forage management, reducing costs, improved animal health and welfare and meeting market requirements.

• The Welsh beef and sheep sector has made strong progress towards reducing greenhouse gases.

• Some of this is due to a reduction in livestock numbers but the greater contribution to emissions reduction is from improvements in efficiency and productivity.

• For example the use of fertiliser, which is counted in the sector’s emissions calculations, has declined by around 30% on GB grassland in the last 5 years.

Next steps

• In developing the Roadmap HCC is engaging with producer representatives, processors, retailers and the Welsh Assembly Government over the coming months to develop and agree a Red Meat Roadmap for Wales.

Y Diwedd – The End