'Long way to go before confidence is restored', NFU Cymru says
Despite glimpses of an improving milk price situation, NFU Cymru’s message at this year’s Welsh Dairy Event is that there is a long way to go before farmer confidence is restored.
Recent Global Dairy Trade (GDT) auction prices for key commodities have shown price rises, some processors have lifted milk prices and following high level meetings involving NFU Cymru and other key industry representatives, a number of retailers have announced initiatives to ensure that more money goes back to producers. NFU Cymru, however, believes the Welsh dairy industry remains in a precarious position.
NFU Cymru Milk Board Chairman Aled Jones said, “With the Dairy Event being held in west Wales, an area where hundreds of First Milk producers have seen their milk price almost halve in the past year, any positive news will be welcomed. Whilst we are all desperately looking for signs that this current price slump is coming to an end, the vast majority of Welsh dairy producers continue to receive a milk price well below the cost of production. Here in Wales the majority of our milk is made into cheese and with cheese stocks high and prices depressed we are far from out of the woods. Our immediate concerns are centred on the short term cash flow crisis facing the industry, last week I met with Defra Farming Minister, George Eustice, to impress on him the importance of the prompt delivery of the EU Dairy Crisis Fund.”
Stephen James, NFU Cymru President, a dairy farmer himself in Pembrokeshire added, “I met with the Deputy Minister yesterday to impress on her the need for the Basic Payment Scheme support to be delivered to the majority of farmers this December.
Stephen went on to outline some of the key areas of work and recommendations from the Andy Richardson review of the dairy sector in Wales that both Welsh Government and industry need to focus on delivering to help ensure the long term future of dairy production in Wales.
“We need to create a greater demand for Welsh Dairy products and I want us to be actively targeting new export markets and developing our current markets working closely with the Welsh Food and Drink Industry Board to look at the potential to improve the branding of dairy products from Wales, to add value to our milk wherever we can within Wales.
“On this matter I hope that the feasibility study to evaluate the potential for a market driven dairy processing facility in south west Wales will signpost us towards the potential opportunities to improve our processing capacity in Wales. NFU Cymru has met with the consultancy firm responsible for this study and we await their findings with interest.
Aled Jones concluded, “More than anything we want a fair price for our milk, we want to be confident that the supply chain is working properly. We want all processors to adopt the code of practice on milk contracts, adhering to all the terms and conditions and not just picking and choosing what suits them.
“NFU Cymru also feels that now is the time for the Westminster Government to expand the role and remit of the Grocery Code Adjudicator to cover a wider range of retailers, going beyond the top ten retailers currently covered. I believe that there is a need to consider longer term how the GCA could consider the food service sector and the relationship between processors and producers.”