"Production of the best quality suckler beef is under threat unless margins improve," says NFU Cymru Livestock Board Chairman, Wyn Evans, at a Meirionnydd NFU Cymru county meeting this week.
During the meeting, members indicated that the benefits of the PGI status of Welsh Beef; Farm Assurance, through the Red Tractor; and consumer trust and recognition of these schemes are not reflected in the end price to farmers.
Wyn Evans continues: "Retailers and processors are asking for our quality PGI product, but price paid often fails to recognise the cost of production involved.
"The payment grids for finished cattle fail to adequately pay a premium, with the added complication of increasing penalties for higher weight cattle squeezing margins even further.
"There is scope within the Wales Rural Development Programme (RDP) for the introduction of initiatives to help maximise the productivity and competitiveness of the Welsh beef industry.
Supporting on-farm investment
"Welsh Government can help the sector through increasing opportunities under the Sustainable Production Grant scheme (SPG) and the introduction of a small grant scheme in the RDP to support on-farm investment in new equipment and technology.
"The environmental benefits of suckler beef as part of a mixed grazing regime on the hills and uplands of Wales are well recognised.
"We believe there are opportunities to encourage suckler beef production through agri-environment schemes under the Wales RDP."
Meirionnydd NFU Cymru County Chairman, Geraint Rowlands said: "I’d like to thank Wyn Evans for addressing our meeting.
"The beef suckler sector is under extreme pressure with the continuing depression in prices. However there is demand for our quality product so we need to make sure that this demand is reflected in the price that we’re paid."
