Biodiversity targets, labour shortages, net zero own goal

Our weekly dose of news, views and insight from the world of farming, food and landownership

The letters page of Farmers Weekly regularly hosts missives from UK producers worried that the government’s renewed focus on the environment and the growing enthusiasm for rewilding will come at the expense of food security. A new report from Oxfam now claims that the rush to Net Zero could have unintended consequences for some of the world’s poorest people. Talking of unintended consequences, the ramifications of Brexit are starting to bite as a shortage of labour hits multiple links of the food supply chain.

Andrew Shirley, Head of Rural Research

In this week’s update:

• Commodity markets – Arable up, but pigs struggle
• The Environment Bill – Biodiversity targets strengthened
• Brexit – Labour shortages hit food chain
• Peatland restoration – Government announces new schemes
• Beavers – English consultation launched
• The Rural Report – Sign up to watch our ground-breaking video
• Overseas news – Net zero rush could hit world’s poorest

Commodity markets – Arable up, but pigs struggle

Concerns about a global grain shortfall has buoyed oilseed rape and wheat prices, but the knock-on effect on livestock feed prices (soyameal is up 20% on the year) is hitting UK pig producers, already under pressure from cheaper EU imports and a drop in abattoir capacity due to labour shortages – throughput is down by 30,000 a week compared with 2020, according to AHDB figures. After a slight rally over recent months finished pig prices are now edging downwards.

The Environment Bill – Biodiversity targets strengthened

Amendments to the Environment Bill tabled last week bind the government and its successors to improving biodiversity levels over the rest of the decade. Instead of pledging to “further the objective of halting the decline in species abundance by 2030” as worded originally, the amendment states that the government will “halt the decline..”.

Such an emphatic statement will inevitably influence future policymaking that affects farmers and estate owners.

Another amendment potentially of interest to landowners and developers will: “Create a duty and power to allow the Secretary of State to review, and increase if appropriate, the minimum duration for which new biodiversity gain sites must be secured.”

Brexit – Labour shortages hit food chain

A shortage of labour – blamed on the government’s unwillingness to add butchers to the list of occupations deemed to be facing shortages following Brexit, and the impact of Covid-19 – is hammering abattoirs, says the British Meat Processing Association.

A friend who works in the industry confirms that some plants are operating with up to 50% fewer staff than usual. Processors are even working with the Justice Ministry to offer employment to prison inmates.

Hauliers and horticultural business are also lamenting a lack of staff, while the British Poultry Council claims 16% of posts in the sector are unfilled threatening Christmas turkey deliveries.

Ian Wright, Chief Executive, of the Food and Drink Federation, told The Times: “If fast action is not taken on [labour shortages], the impacts which we are already seeing will worsen — including supply-chain disruption, on-shelf shortages and potentially closures in the hospitality sector.”

Peatland restoration – Government announces new schemes

Natural England has released details of the first five projects that it will be supporting as part of its £50 million pledge to restore 35,000 hectares of English peatland by the end of this parliament. The second round of Peatland Restoration Grant applications are due to be launched in early 2022.

Beavers – English consultation launched

Following my recent update on the success of the reintroduction of beavers to Scotland, Defra has now launched a consultation seeking views on its proposed approach to further reintroductions of beavers in England and the management of the species in the wild. The consultation closes on November 17th.

Read our Rural Report focus on beaver and lynx reintroduction

The Rural Report – Sign up to watch our ground-breaking video

This year’s edition of The Rural Report, our unique publication for rural landowners and their advisors, launched last month with a video highlighting some of its key content around the topic of ESG. If you missed it, you can sign up to watch on demand at your leisure. It was a lot of fun making it and includes a thought provoking interview on diversity, with Wilfred Emmanuel-Jones AKA The Black Farmer. I think you’ll find it both entertaining and informative.

Sign up to watch The Rural Report launch video

Overseas news – Net zero rush could hit world’s poorest

A report from Oxfam released earlier this month warns that a rush by businesses to offset their carbon emissions using land-based schemes could hit some of the world’s poorest farmers. “Many companies are adopting net zero climate targets as they recognize the urgency of the climate crisis. Without clear definition, however, these targets risk being reliant on using vast swathes of land in low-income countries to capture carbon emissions. It could also lead to an explosion in demand for land which, if not subject to careful safeguards, might risk increasing hunger and fuelling land inequality.”

Photo by Tim Riesner on Unsplash