More action is needed to make a long term difference to dairy farmers as the Welsh Government's makes its allocation of the EU farming support package.
After extensive NFU Cymru lobbying in Brussels, Westminster and Cardiff, the Welsh Government has announced that dairy farmers in Wales will receive a total of £3.2 million.
NFU Cymru President Stephen James said, “The allocation of EU funds to Welsh dairy farmers will provide a welcome cash boost for our dairy farmers who are experiencing devastating price cuts and market volatility.
“Whilst the announcement is a boost to dairy farmers we must not forget that all sectors of the Welsh agricultural industry are suffering cash flow problems, this is why we have asked our Deputy Minister to make use of the flexibility offered by the EU, in terms of delivery of BPS and Rural Development funds, to support all Welsh farmers at this difficult time.”
NFU Cymru Milk Board Chairman Aled Jones said, “AHDB figures show that average UK milk prices have fallen by 25 percent in the last year, but that hides the variance that we currently see in the sector.”
Mr Jones continued, “Many hundreds of our members who supply First Milk have seen their milk price halve in the same period. Given the serious cash flow crisis on Welsh dairy farms it is important now that this money is distributed as quickly as possible.
“The allocation of the EU farming support package is far from the end of the story. Whilst this support will provide some short term relief it does not alter the fact that farmgate milk price remains well below the cost of production, with farmers losing significant money on every litre of milk they produce. We will continue to urge government, processors and retailers to work with farmers for more fair and transparent contracts, stronger producer groups and the development of a futures market.
“In addition, dairy products must be more clearly labelled as Welsh and British and the EU must commit to a technical review of the dairy intervention scheme.”
