“I know myself as a supplier and member of First Milk that it is desperately tough with milk price volatility and a fall in global demand but we will continue to drive forward our campaigning and lobbying efforts on members’ behalf,” said NFU Cymru President Stephen James, at a recent meeting at Meifod.
Speaking to NFU Cymru members in Montgomeryshire, Stephen James, said, “We will influence in the areas where we know we can have a real impact to benefit dairy businesses; on cash flow, the supply chain, consumers, on regulation, functioning markets, contracts and working with the EU and Government.
“Regrettably, I think we are looking at further periods of volatility so we must press on with lobbying on tax averaging and measures to facilitate investment, to better equip farmers to manage their businesses. Futures markets need to be developed to take some volatility out and help farmers hedge against risk and support from European institutions is essential. Other tools to help protect farmers against risk like insurance are also being investigated.”
“Another key area that we are pushing for is a much more realistic intervention price to put in a more meaningful ‘floor’ in the market. At the present price level it offers no safety net what so ever and is simply meaningless and a useless market management tool.”
“It is a difficult time now, but there is a great future for dairy farmers here in the UK. Of course it’s difficult to look ahead but there are signs that global markets have now bottomed out and possibly on the rise. New Zealand production is falling on the back of drought conditions and Global Dairy Trade Auctions are returning improved returns.
“We’ve got consumers with us and a growing body of evidence supporting the role of milk and dairy products in a healthy diet. We’ve always known of course that healthy eating and regular physical activity play a vital role in your health and wellbeing. Dairy foods like milk, cheese and yogurt make an important contribution to the diets of all age groups as well of course as tasting delicious.
“An overview study by Professor Peter Elwood at Cardiff University though goes a dramatic one step further, as it shows an actual protective association between milk consumption and incident heart disease, stroke and diabetes. These results seriously challenge current dietary guidelines and other advice that recommends a limitation in milk intake or recommends a diet of low-fat dairy products and reinforces the fact that whole milk and full-fat dairy products have a positive effect on our health and well-being.
“It is really pleasing to hear of a small but growing band of health practitioners who support whole milk and dairy products as part of a healthy diet.”
The meeting also discussed the continued uncertainty as to how the Basic Payment Scheme (BPS) will be distributed across Wales from this year onwards. NFU Cymru Montgomeryshire County Chairman, Jonathan Wilkinson, who hosted the meeting, said, “Throughout the entire CAP reform process NFU Cymru has consistently argued for a policy solution that seeks to minimise disruption, as much as possible, in the move from historic to area based payments. We’ve stressed to Welsh Government the importance of reconsidering all the options available under the EU regulations to help inform its new consultation.
“As well as a differentiated payment rate system, consideration must also be given to the approach to CAP direct payments adopted in Ireland, the so called ‘tunnel approach’ which seeks to limit the losses for farmers in the transition towards an area based payment. As soon as the consultation is published we’ll be holding further meetings to discuss the options in much greater detail with our members.”
