Dairy farmers and milk suppliers could face reduced demand if dedicated school milk funding ends
A £3 million school milk scheme supporting more than 81,000 pupils in Wales could be scrapped, raising concerns about children's access to milk and the potential impact on Welsh dairy farmers.
The Welsh Government is consulting on whether to replace or discontinue the dedicated School Milk Subsidy Scheme, which has operated since 1977.
Figures show that 81,374 pupils received milk through the scheme on the 2024–25 school census day, representing around 30% of those eligible.
The proposals follow the Rural Payments Agency's (RPA) decision to stop administering the scheme after 31 March 2027, prompting ministers to review its future.
NFU Cymru is urging the government to retain dedicated school milk provision, highlighting its nutritional benefits and the importance of maintaining opportunities for domestic dairy suppliers.
The concerns come as the Welsh Government's own rural impact assessment acknowledges that ending the scheme could reduce demand for milk supplied to schools.
Such a move could affect dairy farmers, processors and suppliers, although the government expects the overall impact to be relatively modest within the wider dairy market.
The scale of any losses remains uncertain and would depend on future school milk provision and procurement arrangements.
Under the current scheme, children in Reception to Year 2 receive free milk, while pupils in Years 3 to 6 can access subsidised milk.
One option being considered would establish a replacement scheme funded through local authorities, maintaining broadly similar eligibility and financial support.
Children would continue to receive up to 250ml of milk per day, although participation would depend on local authorities accepting and administering the funding.
The alternative would end the dedicated subsidy scheme, leaving pupils able to access milk through existing school breakfast and lunch provision.
However, access would depend on children participating in those services, rather than receiving milk through a separate scheme.
NFU Cymru said: “We believe it is vital that milk remains accessible to schools via a dedicated route.”
The union highlighted milk's contribution to a balanced diet, including its provision of protein, calcium and vitamins B2 and B12.
With only around three in ten eligible pupils currently participating, it believes there is considerable scope to increase uptake.
NFU Cymru also wants any replacement arrangements to create more opportunities for Welsh dairy farmers and processors to supply schools.
The union has called for closer cooperation between the Welsh Government, local authorities and the dairy supply chain to increase the use of Welsh milk.
This comes as ministers develop a National Food Strategy for Wales, which will examine public procurement and opportunities to increase the use of Welsh produce in schools.
Cabinet Minister for Education and the Welsh Language Anna Brychan said: “Milk has long played a part in supporting the health and wellbeing of our youngest learners, and I want to make sure any decisions about its future are based on the fullest possible evidence.”
The Welsh Government is seeking views from schools, parents, pupils, farmers and dairy businesses before deciding whether dedicated support should continue.
The separate Nursery Milk Scheme, which provides milk for pre-school children, is not affected by the proposals.
NFU Cymru has confirmed it will respond to the consultation and is encouraging farmers and others involved in school milk provision to have their say.
The consultation, launched on 26 October, closes on 4 January 2027, with any replacement scheme expected to begin from April 2027.