Welsh dairy industry at mercy of a 'perfect storm'

The Welsh Government must do more to champion the Welsh dairy industry as it faces severe challenges in the face of a perfect storm.

That was the message of the Party of Wales Shadow Minister for Sustainable Communities, Energy and Food Llyr Gruffydd as he led Plaid Cymru’s Assembly debate on the matter.

Llyr Gruffydd urged the Government to act where it has competence and speak out in support of measures that others could introduce as the plummeting price of milk leaves the industry facing one of its toughest periods.

He called on the Welsh Government to:

· Redouble efforts to add value to Welsh milk by increasing local processing


· Better procurement practices to encourage consumers to choose local produce and improve the marketing of Welsh milk

· Clearly state its support for broadening the Groceries Code Adjudicator’s role to include dairy farmers

· Back the strengthening of the Dairy Code which gives dairy farmers more protection in their contractual relations with milk processors.

The Party of Wales Shadow Minister for Sustainable Communities, Energy and Food Llyr Gruffydd said: “Welsh dairy farmers have been severely hit recently by a chain of events that have driven their incomes down. With devastating milk price cuts at farmgate level and increasing production costs, the fortunes of dairy producers are in a very precarious state.

“Since its introduction two years ago, Plaid Cymru warned that the role of the Groceries Code Adjudicator was too restricted which prevented it from sufficiently protecting dairy farmers.

“It’s time that this is addressed. The Welsh Government should throw its weight behind the key recommendations of the Westminster’s Environment, Food and Rural Affairs Committee report to extend the remit of the organisation. It should also look at marketing and procurement practices to maximise domestic consumption of milk and milk produce.

“In the short term farmers need the best possible advice and support to manage very challenging cashflow problems, whilst in the longer term we also need to see continued investment in infrastructure to improve efficiency within the sector.


“The dairy industry in Wales has been at the mercy of a perfect storm, so it is crucial that the government does what it can to support the industry through these difficult times.”