Next generation dairy board is vital for the industry's future

"I am excited about the NFU Next Generation Dairy Board and I look forward to their valuable contribution to NFU policy," said Gwyn Jones, NFU dairy board chairman, at the well attended NFU Cymru Mid-Gwynedd Annual General Meeting held last Thursday.

Mr Jones explained that 12 young dairy farmers from across England and Wales have been successfully appointed onto the new board. They will have their first meeting in March at NFU Headquarters in Stoneleigh, where they will meet officeholders and staff, learn about the structure and policies of the NFU and set their agenda for the next year. Future meetings will take place in Brussels and London.

Mr Jones said, "The announcement of our plans to engage with younger dairy farmers received an overwhelming level of interest with over thirty applications received for just eight positions. We have selected the best people and also achieved a reasonable geographical spread; expanding the board to twelve due to the high quality of applicants.

"We are very fortunate to have a very strong representation of farmers on our national board, but the Union recognises that to maintain the strength we must start planning now by providing opportunities for younger dairy farmers to take an active role in the NFU’s policy and lobbying activities. Their input is vital if we are to be effective and many of the decisions dairy farmers make today will have a major impact on our industry for years to come.

"The new appointees are all young farmers who believe passionately in a thriving future for the dairy industry. More importantly, they want to step forward and take action to see that happen – we hope that the ideas generated within the board will be things they can take back to their regions for further discussion and action."

During the meeting NFU Cymru members raised their concerns about the recent milk price cut announcements. Earlier last week Wiseman announced that they were to reduce its milk price by 2.2p per litre from Febrary 1 2009. This follows Dairy Crest announcement last month that it was cutting milk price by 1.75ppl and Davidstow by 1ppl.

Responding to members concerns Mr Jones said, "Like you I am very disappointed with recent announcements, but it was not wholly unexpected in an industry where one milk buyer still follows another’s lead. What is concerning about Wiseman’s decision is the magnitude of the price cut, which is larger than any other cut and difficult to reconcile for a liquid milk buyer."

Mr Jones continued, "We can’t ignore the impact that these cuts will have on Sainsbury’s dedicated producers, supplying milk through Wiseman’s and Dairy Crest. Members of Sainsbury’s Dairy Development Group are all producing milk to Sainsbury’s exclusive standards and Sainsbury’s has invested millions of pounds in its dedicated suppliers in the last few years. Yet both the retailer and its dairy farmers are being let down by milk buyers imposing price cuts and undermining their efforts.

"It is time that Sainsbury’s, Asda and Morrison’s matched Tesco’s achievements on liquid milk by establishing a proper pricing calculation, based on transparent pricing formulae, that is detached from commodity market pricing and which develops long-term, trusting relationships in the supply chain. Quite simply, these retailers must stop coming up with excuses as to why it can’t be done and take control of their milk supply."

Mr Jones added, "In an ideal world we want to see proper milk contracts. These contracts should clearly state what price producers will get for their milk over a set period of time. This would then put a stop to retailers being able to cut prices due to what they claim to be the pressure of funding retail promotions and lower returns from ingredients markets and doorstep sales."

The NFU Cymru leaders in Mid-Gwynedd remain unchanged for the coming year, Dafydd Jones will remain as Chairman and Edwin Noble as Vice-Chairman, both will take the County Branch through to 2010.