Failure to recognise the bottom line is dangerous

Oxford Farming Conference delegates were brought back to reality at a breakfast meeting hosted by farm business consultants Andersons on the second day of the conference.

Consultant John Pelham said he had listened in vain for most of the first day of the conference for the words “profit” and “costs”. “It finally came at 3:30pm from a speaker from Spain,” he said. “Talk about sustainable intensification and the need to increase production is fine but it doesn’t take into account the ability of consumers to pay or the effect of increased production on profitability. Farmers have not made a profit for the last 15 years without subsidy and unless they can make a profit, other objectives, however worthy, will not be achieved.”

Pelham questioned the logic of encouraging increased production of milk and wheat as the UK was more than self sufficient in both products. EDDIE GILLANDERS