Ceredigion dairy farmers play Russian roulette
"The law of supply and demand does not appear to apply to the dairy supply chain," NFU Cymru County Chairman for Ceredigion, Gerwyn Owen, told local farmers at Ty Glyn Aeron recently.
Mr Owen was referring to last month's milk production figures, which show the lowest February level for 10 years, but despite this, processors and retailers are putting downward pressure on the price being paid to dairy farmers.
A dairy farmer from Dihewyd near Lampeter, Gerwyn Owen said, "Processors continue to see milk price as a form of Russian roulette, each seeing how much more they can cut off the price they pay to farmers before the farmer capitulates. At the same time as the three main liquid processors announce positive trading statements to the stock market we face rising input and energy costs and more and more farmers are leaving the industry.
"Latest NFU figures highlight that on average milk producers are losing 1.5pence* for each litre of milk they produce, it is imperative that the dairy supply chain acknowledges this and remedial action is taken in order to protect the long term viability of dairy farming in Wales."
On a more positive note the well-attended meeting received a presentation from David Owen and Elwyn Morse, Directors of Anglo European Farmers limited, a farmers co-operative looking to restoring European markets for UK livestock. The venture has the potential to provide a market for bull calves from the dairy industry.
County Milk Representative, David Evans from Rhydlewis said, "It is imperative that we can restore our European markets for dairy calves lost as a result of the beef export ban. At present it is heartbreaking to see the cost of the tags in the ears of our calves being more expensive than the value of the calf."
He concluded, "The re-opening of the European market has the potential to improve the confidence of our entire industry, it is a positive sign for the future for dairy farmers and a purchaser for our calves that, at present, have no value."
