SHEEP farmers were celebrating today after a new Government code of practice forcing European producers to stick to stringent welfare standards was launched.

Livestock producers hit hard by the farming crisis have long campaigned for a "level playing field" among European member states.

Now MAFF has unveiled a new Sheep Welfare Code offering advice on best practice, preventing disease and the provision of food, water and bedding.

The code, launched yesterday at Sheep 2000 at the Three Counties Showground in Malvern, will come into force on Monday, August 14.

"The new code has been designed not to put any onerous new stress on our sheep farmers," said Farm Minister Elliot Morley, speaking at the launch.

"Far from it. It's been introduced on the advice of the Farm Animal Welfare Council.

"It's aimed at helping stockmen care for their animals.

"This code is not cosmetic. It will have real influence."

He said farmers breaching the code - which will only apply in England - could be prosecuted.

"This brings no new requirements for our producers because our standards are already among the best in Europe," Mr Morley said.

"But for the first time they will apply to all EU member states.

"Standards which we have adhered to for many, many years, in some member states didn't exist.

"We want common standards in the whole of Europe. It's a question of fair competition."

He told the scores of sheep experts at the Press conference the industry needed to concentrate on exports and mould itself to suit customers' changing demands.

But he refused to be drawn into the hunting row over the role of hounds in upland areas and denied the state of the sheep industry compared to the coal crisis 15 years ago.

An extra £120m had been pumped in over the past two years, he said.

"We are always going to have to have upland grazing," he said.

"It's an important part of countryside management and rural society.

"We as a Government want to see farmers on the hills and are prepared to put the finance in.

"What we need is fewer animals of better quality. And that is what will push prices up."