Objective One

Mr Middelton states that his working life has become more flexible and training cows to use the robot has proved a lot easier than anticipated. The machine can also detect milking problems, mastitus and more and contains a comprehensive daily herd management programme.

 

The report goes on to identify the concentration of food processing activity in the County amongst a small group of very large processors, with established national and international markets. These processors are seen to have a major impact in the Cornish food economy ‘through sourcing, employment and services’ (Reed et al 2003: 9) and according to the authors, ‘the majority are embedded in the Cornish and more generally, the regional economy’ (Reed et al 2003: 10).

 

For the agricultural primary producer, the business context for their businesses has changed considerably over the last decade with the BSE crisis, Foot and Mouth adding to the challenges of the strength of sterling. More recently, radical decoupling changes to the support for farmers arising from the Mid Term Review of the CAP, with the introduction of the Single Payment presents for many a turning point. Whilst some will be lost to the industry, others will continue to respond to such pressures with a more positive approach, with strategies including increases in scale of operation and diversification in the use of resources at their disposal (Lobley, Errington, McGeorge, Millard and Potter 2002).

 

The exhortations of the Curry Commission (Curry Commission 2002) to reconnect the links in the food chain have, thus far, been embraced in Cornwall, with more to be done, as articulated in the report to the Taste of the West, ‘We believe that our findings demonstrate a lively and vibrant agro-food sector in Cornwall with considerable development potential’ (Reed et al 2003: 6).

 

Similar pressures have challenged the level of profitability in the forestry sector including increasing levels of imports from Western and Eastern Europe. The need to further diversify the markets for forest products, through processing, or to upgrade existing facilities to meet increased demands in products (ie firewood, furniture and charcoal) is clear in order to retain and improve interest in this sector.

 

In 1999, Objective 1 status was granted to Cornwall and this has provided the financial resource to continue to effect this development. Under the Rural Development Regulation, Measure 1.4: Processing and Marketing of Agricultural Products specifically refers to Benefits to Primary Producers arising from Objective 1 funding. Article 26, paragraph 2, states that: ‘investment must contribute to improving the situation of the basic agricultural production sector in question.  It must guarantee the producers of such basic products an adequate share in the resulting economic benefits’.

 

A Guidance Note issued by RDS in March 2003 notes that, ‘The Regulation gives no further guidance as to what constitutes an adequate share in the resulting economic benefits.  It is for applicants to make a case and justify funding'. The Guidance Note goes on to identify a number of ways in which farmers and growers may benefit directly or indirectly from such funding.

 

For the producer processor, the benefits, financial and non-financial, will be direct and potentially include, establishment of processing facilities to add value to the primary product or the development of existing facilities in size or range of primary product used or end product produced. Additional benefits, also potentially available to the primary producers were noted as: security of market through longer term contracts (providing, the opportunity to plan for the future and to reduce the time required to market produce); development of the market for new products or of the market share for existing products (eg, through branded products); additional support provided by the processing company - ‘Examples might include free technical advice (including crop walking, and hygiene), laboratory services and assistance with new product development’ (RDS 2003;2); better prices for the primary product  and any quality improvements or requirements relating to this.

 

So what has been the impact on primary producers in Cornwall from

Objective 1 funding to the food and non-food processing sector in the County?