Survey results reveal disastrous economic state of Welsh farming industry

The appalling state of the livestock sector in Wales has been confirmed today by Farm Business Income statistics published by the Welsh Assembly Government which also provide clear evidence of the disastrous economic state the farming industry currently finds itself in.

Farm incomes in Wales overall are down but the variation in the economic performance of the sectors varies considerably. The livestock sectors in both the Less Favoured Area (LFA) and lowlands have had an astonishingly difficult year. Net Farm Income (NFI) on LFA farms is down 63% at £3,000; lowland NFI is down 24% at £8,500. This is a reflection of the combination of market disruption which followed Foot and Mouth Disease and BlueTongue Virus, which compounded the problems of a depressed market resulting from ill-timed New Zealand imports. On the other side of the equation there have been massive increases in costs resulting from hikes in feed, fertilizer and fuel prices.

Dai Davies, NFU Cymru President said, "The figures demonstrate quite clearly that the industry's income position is wholly unsustainable and if Welsh farmers are to be required to play their part in assuring security of food supplies in the context of the shortages that are likely to emerge in global world markets then this position has to be redressed immediately."

Total income from farming in Wales in 2007 was down 10.4% on 2006 compared to a rise in the UK figure, but represents less than a third of the value for 2005 despite some recovery in the milk and arable sectors.

This suggests to NFU Cymru that the industry as a whole in Wales is fairing worse than in some other parts of the UK and is a reflection of our dependence on the livestock sectors.

Mr Davies concluded, "The figures hold no surprises for NFU Cymru but lend credence to the desperate financial plight of many Welsh farmers and confirm that unless they can be assured of a return to profitability their position is untenable and unsustainable, with all the ramifications this will have for food supplies and the countryside in general."