A report on the current state of the Welsh dairy sector has been launched by the Farmers’ Union of Wales in order to identify the main issues affecting the sector and those mechanisms which might mitigate some current problems.
The FUW’s Milk and Dairy Produce Committee Chairman, Rhydian Owen, said: "The Welsh dairy industry continues to reel under months of continuing low prices and poor profitability and almost half of dairy farmers in Britain have stated an intention to quit the sector.
"The FUW is extremely concerned that any sign of a price recovery may still be some way into the future due to a continuing global supply and demand imbalance.
"We have now sent a synopsis of the main issues contributing to the current dairy sector crisis to local MPs, MEPs and will be distributing this information further to the newly elected Welsh Assembly members."
'Sector must be managed in a manner which stabilises prices'
The report shows that a year after milk quotas have been abolished, and in the absence of any observable or predicted changes to current global supply and demand dynamics, it is imperative that the milk market is managed in a manner which stabilises prices.
"The market has to be managed in a way that ensures a fair standard of living, protects producers from the effects of unfair practises and strengthens their position in the supply chain.
"Furthermore, the on-going Russian trade embargo, coupled with reduced demand in China and a weak economic environment will likely delay price rises beyond any potential downturn in production," added Mr Owen.
The report further concludes that measures which enhance the sustainability and viability of the Welsh dairy sector will therefore be essential to ensure future competitiveness and innovation.
FUW Senior Policy Officer Dr Hazel Wright said: "The FUW Policy Department continues to work with the Union’s Milk and Dairy Produce Committee to fight for the prosperity of Welsh dairy farmers.
"In order to preserve the future of Welsh and British dairy farmers, it will be crucial to ensure that resilience does not merely focus on producing milk at lower prices.
"Instead, to recognise the need to intervene in a way which mitigates the wealth of issues which remain out of the control of the primary producer."
