HSBC head of agriculture Allan Wilkinson has called on farmers to embrace new techniques, and claims that those who do are in a stronger position for funding.
Wilkinson, who has been involved with HSBC’s agricultural team for over 20 years, has been impressed with widespread innovation despite the current economy. “Farmers will justifiably run away from current rent prices as it is difficult for them to expand with such inflated prices on short-term acquisitions and even on outright purchases,” he told FPJ.
“Despite this situation across the board I have been pleased to see farmers investing in the future by simplifying and modernising their farming systems, taking on new technology and updating their grain stores or packing lines.”
With the current up-and-down weather conditions, Wilkinson believes maintaining flexibility is crucial. “Growing programmes are challenging when an unexpected problem arises; I believe implementing new technology really can reduce total costs,” he said.
With many growers turning to co-operatives, Wilkinson is keen to stress that the big banks are still actively supporting the fresh produce industry.
He also believes the eurozone crisis has had an unexpected side effect. “The eurozone has added another dimension to things, and in the last 10-12 months the pound has gradually strengthened against the euro and in isolation, that has made our own products more expensive and imports more attractive.”
Wilkinson believes farmers must combine traditional methods with technology for future stability. “The use of techniques like GPS and the understanding of soil sciences helps farmers reduce the use of fertiliser; the aim for growers now has to be to get more out of less. Farming skill is all about understanding the weather, soil conditions and determining what is happening in local microclimates. Growers must combine traditional and technological methods.”
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