NFU Cymru's disappointment with ministers response

NFU Cymru has expressed its disappointment today with the Agriculture Minister's response to its plea to stop proposed cuts in the dairy payments being made this year.

Peredur Hughes, NFU Cymru's President, wrote to Carwyn Jones last month explaining his hopes for the dairy premia and the additional dairy payment to be exempt from voluntary UK modulation at 3.5% for 2004.

Carwyn Jones AM's response says he is aware of the fact that the dairy industry is going through challenging times, however, he cannot see that excluding the direct dairy premium and additional payments from modulation in 2004 would have a significant effect on the industry.

Mr Jones went on to explain that flat rate modulation is applied to all other direct payments and the Assembly is required by law to apply modulation in a way that ensures equal treatment between farmers and avoids market and competition distortion.

Peredur Hughes said, "Mr Jones says he would find it difficult to single out the dairy sector by excluding the dairy premium payments from modulation. NFU Cymru believes, however, that the dairy sector will have very little chance of availing itself of pillar 2 measures in the short term.

"In light of the Welsh Assembly's decision I think we will need some creative thinking on the kind of schemes that will offer real and tangible benefit in encouraging an efficient and market focussed dairy sector."