EU referendum could change the farming industry, says Craven Cattle Marts' general manager

Jeremy Eaton, CCM general manager

One of the positive highlights of 2015 was the interest from vendors in developing a weekly sale of high quality clean cattle every Monday to supply local retail and wholesale customers.

The driver for this came in the form of the new Keelham Farm Shop at the mart’s entrance on Gargrave Road, which is increasingly meeting the general public’s hunger for produce which is high quality, locally sourced and in many cases bought in our sale rings.

This is repeated in the numerous independent stores across the region through butchers who buy directly from ourselves or from the wholesalers who attend our sales.

We have seen a 15 per cent reduction in prime lamb value and this is similarly representative of a difficult trading year on EU export markets, where strength of currency excludes our product on price.

With no prospect of a strengthening Euro long-term to assist demand abroad, the sheep trade looks increasingly focussed on a home market which struggles to absorb the quantities seen at certain times of the year.

This also results in our exclusion from trading with EU partners on price, while the strength of our currency makes the UK the number one destination for their meat products.

However, I suspect there is even less appetite in the UK for a common currency and there is much cause for discussion from both sides of the European debate from a farming perspective.

On the flip side UK farmers are unable to operate at world market prices because of the scale of farming and the cost of complying with environmental/welfare legislation. Without the current EU support available to producers farming in the UK in many sectors is unsustainable.

The forthcoming in/out referendum represents a chance to alter a die for our industry which is currently cut in Europe and it is up to us all to inform ourselves fully of the positives and negatives of either outcome over the next 12 months to ensure that we don’t regard this later as a ‘missed opportunity.’

Ted Ogden, CCM livestock sales manager

There is little doubt that our industry is continually changing and, consequently, CCM as a company has had to evolve to keep our customers’ - both buyers and sellers - best interests at the forefront of our planning.

We have all had to embrace the changes in technology, particularly in sheep EID. Now, specialist uses in social media for sheepdog sales, Mule gimmer lamb sales and other breeding stock sales have helped to spread the word in a whole new medium about what happens at Skipton.

Such ways of promoting the business have undoubtedly helped the Wednesday sales of store cattle, young feeding bulls and store lambs to remain a huge magnet for many to Skipton Mart and the cattle sales have seen useful increases in entry levels across 2015, with a total increase in numbers sold of 15 per cent.

While we continue to have some of the leading sales of commercial and pedigree livestock in the country, the diverse nature of cattle on offer has also improved, ranging from the premium Continental-sired young bulls, steers and heifers - from suckled calves to strong stores – to an ever increasing element of native-sired cattle and cattle originating from the dairy herd, together with young stirks at the monthly Saturday sales.

CCM continually looks to its annual sales calendar and ways to improve our offering to customers, and we have some exciting new additions for 2016.

There are many challenges to the sheep sector, but year on year Skipton Mart continues to grow as a place to trade sheep, with nigh on a third of a million sheep passing through the sale rings again in 2015. This proves the effectiveness of live marketing as a one-stop shop matching sellers and buyers together in one place.

The challenges faced this year have been more acute than recent years, as changes in the levels with which the pound trades against the euro make our product look even dearer to continental market places, while having the double whammy effect of making imported product look even cheaper.

Whatever happens in the future, we continue to strive to offer our customers a competitive ringside of buyers, ranging from retail butchers and farm shops, through medium-sized wholesale butchers to large throughout processors and customers dealing with the ethnic trade.

The site at Skipton has evolved over the years and gives our customers the ability to do so much more on one day and in one visit, with on-site agriculture-related service and supply businesses offering everything and anything our agricultural communities need. They are all allied to a modern and efficient livestock market facility.

Sam Bradley, CCM junior auctioneer

The 2015 year began as the previous one left off, with the liquid milk price - both farm gate and commodity price - being continually depressed by the global over-supply of milk onto the market and further compounded nationally by the unfavourable exchange rate.

Brief glimmers of change were ever-present nationally throughout the year, with well supported and successful protests creating awareness of the difficulties faced by the dairy farmer, as processors and retailers were pressured into making changes to marketing and pricing.

Sadly, not enough changes occurred to make a significant difference, with farmers bearing most of the brunt by being caught on the wrong contract at the wrong time.

A testing road ahead looks set for the short term, with a brighter future somewhere on the horizon. The strength of the EU milk industry lies in its skilled farmers, infrastructure, agro-technology and climatic conditions, which puts us ahead of large parts of the world, with resilience to this downturn key to maintaining the sector’s place in the international market.

Throughout 2015, newly-calved heifer and cow prices reflected the difficulties faced in the dairy industry, with the year’s averages through the ring being understandably lower than previously.

However, the quality has been just as good, if not better.

Despite prices being in line with industry trends, regular and seasonal purchasers have still been attending the twice monthly sales to bid and buy from the quality milkers on sale. However, it has been clear to see throughout 2015 that purchasers have searched for value for money, with animals being built to last high on the agenda.

Conversely, 2015 was a strong year for rearing calves, with throughput and average prices markedly higher than recent years. We saw almost a 10 per cent increase in throughput of calves for the third year in a row, with the average price of calves all year long being £53 per head higher than the previous year.

The year began well, with the extra presence of additional farmer buyers who, dissuaded by the strong store prices, were looking for cattle to restock numbers for the oncoming spring and summer at an affordable price. These same farmer buyers certainly created a strong trade throughout the summer and autumn.

Looking to the future and the continued steady decline of the UK suckler herd, it seems dairy-bred calves will contribute to the shortfall created, with farmers more and more likely to visit the calf ring to maintain cattle numbers.

More detailed reports from all three auctioneers are contained in the latest issue of the mart’s annual newsletter, CCM News. It is available from the mart office and can also be viewed online at ccmauctions.com