Farmers Benefit From Expert View

A leading agricultural specialist from Barclays Bank is in Northern Ireland to host a series of briefings and presentations with local agri-industry representatives.

Euryn Jones will present his today and tomorrow on the prospects for local farming enterprises and the impact that the financial crisis has had on the agricultural sector.

Garth Kennedy, Relationship Director, Barclays Bank NI, explained the rationale behind the briefings in Belfast, Ballymena and Portadown:

"We are delighted to be able to provide over 40 key local representatives with an opportunity to gain an informed insight into local agri-economics from one of the UK's leading agricultural banking specialists.

"Barclays in Northern Ireland is keen to grow the business in this sector and believe that we can use our expertise and knowledge gained within the UK marketplace.

"These initial briefings will also include meetings with representatives of the Ulster Farmers Union in order to get a view of the overall agricultural landscape in Northern Ireland.

"Barclays has a strong history in lending to the agricultural and associated sectors including meat/poultry processing and the food industry.

"This continues to be the case and our lending to farming businesses at the end of September in the UK was at an all time high – providing a clear indication of Barclays continued support for the agricultural sector through a turbulent time in the financial sector," he said.

Euryn Jones, National Agricultural Specialist, Barclays Bank said: "As the economy struggles to escape the grips of a deep recession that has affected so many sectors of the economy, it is important to appreciate that the agricultural economy rarely follows the same track as the general economy.

"Whilst farmers have not been wholly insulated from the impact of lower consumer expenditure, two key factors have protected farming businesses from the worst difficulties of the recession.

"The first is that because food is an essential requirement for daily life and its purchase takes priority over most other expenditure.

"Although consumers have changed their buying behaviours the total quantity of food purchased has remained static. Most farmers therefore benefit from a stable demand for their produce," he said.

"The second factor that has protected the UK's farmers is the depreciation of Sterling.

"As the pound has weakened, imports into the UK have become more expensive and our exports, particularly to other European countries, have become more competitive.

"This has either raised market prices particularly, as in the red meat sector, or in weaker markets such as dairy and arable it has meant that prices have not fallen as sharply as they would have if the pound had been stronger," he continued, but said that "such exchange rates will not last and conversion rates for 2010 Single Payments are expected to make one Euro worth closer to 80 than 90 pence".

(BMcC/KMcA)