Low prices continue to plague farmers' lives. ROB SIMPSON, the regional information officer for the National Farmers' Union, examines the state of the industry.

ASK a farmer what the biggest problem affecting his industry is at the moment and the answer will almost certainly be: "low prices".

Over the last five years, agricultural prices have hit all sorts of records - unfortunately, all bad.

For instance, this year farmers have been selling their cereals for little over £50-a-tonne (that's just 5p per kg) and their milk for less than 16p a litre (that's just 9p a pint).

One sheep farmer commented to me the other day that he had just sold some lambs at the same price as he was selling them 22 years ago.

The price at the so-called 'farm gate' has little impact on the food in your weekly shopping trolley - British farmers and growers get little more than a quarter of what shoppers pay at the checkout for food.

On average, a basket of farmed produce, including beef, eggs, milk, bread, tomatoes and apples, typically costs £37 in the shops but a farmer only gets £11 for it at the farm gate - just 30pc.

In some sectors, farmers do not even get a quarter of the final price.

Cereal farmers receive a paltry 8pc of the price of a loaf of bread even though wheat is the main ingredient and pig farmers receive just a shocking 14pc of the final sale value of bacon.

When it comes to milk, dairy farmers receive only a quarter of the average 36p which you will pay in the shops or on the doorstep for a pint.

Someone is making a considerable profit on milk in this country, so why are farmers forced to accept a loss on every pint they sell?

When this question is put to the processors (who pasteurise and bottle the milk) and the retailers, they blame each other. Someone isn't telling the truth and our farmers are suffering.

Buying and selling

Despite the 60,000 farmers and farm workers who have been forced out of their jobs in the last few years, there are still tens of thousands of farmers left in Britain.

And when each individual farmer attempts to sell his produce, he is one of many selling to perhaps ten major purchasers whose buying power is immense.

In addition, cheap, inferior food which floods into this country from abroad undercuts quality home produce and increases the downward pressure on farm gate prices.

A lot of work is going into encouraging farmers to form co-operative arrangements to improve their selling power, but there is still much to be done.

Highlighting the financial plight of the primary producer and the justification for farm gate price rises can achieve short-term improvements, but, ultimately, farmers will have to work together if they want to see better returns from the marketplace.

However, until those changes occur, farmers in this country will continue to be threatened by the low prices.

Why Farming Counts

As well as producing quality food, UK farmers also produce a living vibrant landscape which provides a home for a vast array of wildlife.

Without this careful stewardship of the land, our countryside, which has evolved over centuries, would change beyond recognition.

As consumers, we must remember that businesses which lose money cannot continue for long. Losing our farmers means losing control of both how our food is produced and how our countryside is managed.

It is essential, therefore, that our farmers are paid a fair share of the retail price.

The NFU's recent Farming Counts campaign succeeded in increasing public understanding of the range of issues currently affecting the farming industry and outlining the value of the industry to Britain.

But for this campaign to be truly successful, public support must be reinforced by Government commitment to an embattled sector, and consumers must demand quality British food in shops and restaurants across the UK.

Updated: 10:05 Wednesday, October 02, 2002