Challenging market conditions have seen milk prices decline on average by 30% since the turn of the year
NFU Cymru has warned today that dairy farmers face an uncertain future, urging the Welsh government and consumers to do more to back Welsh farming.
Challenging market conditions have seen milk prices decline on average by 30% since the turn of the year, with farmers receiving on average 15p less for a litre of milk than they received last Christmas.
Whilst input costs have fallen from their spike, they remain historically high, and many dairy farmers across Wales are receiving a price for their milk which is below the cost of production.
Whilst there is a glimmer of positivity in the global milk market, NFU Cymru said it would take a long time for this sentiment to arrive at the farm gate, meaning dairy farmers are 'facing a hard winter'.
Dairy farmers also face uncertainty about whether they will be able to participate in future Welsh government agricultural support schemes, with many indicating to NFU Cymru that current plans – particularly around tree planting – will limit their productive capacity.
The level of investment required on farm to ensure compliance with an increasing regulatory baseline is challenging farm finances, the union said.
The planning system 'continues to frustrate' those looking to install additional slurry storage, and bovine TB 'continues to cast its dark shadow across the industry'.
NFU Cymru President Aled Jones said: “Welsh dairy farmers are facing a perfect storm; the industry seems to run on fuel called ‘hope it gets better’ and the tank is on red.
"This is not the way to run an industry. It appears that other parts of the supply chain are passing on their losses to the primary producers and once again it is farmers who are the ones unfairly shouldering the risks that come with producing this natural, healthy and sustainable product."
He added: “Farming is a long-term business, however the ‘boom and bust’ volatile nature of our markets mean dairy farmers across Wales do not have the confidence to make the everyday decisions needed to drive businesses forward.
"This uncertainty also has a ripple effect on the allied industries, and it affects the prosperity and social fabric of our rural communities.
"We encourage consumers to back our dairy farmers in Wales by looking for the Welsh flag when they are shopping.”