Sustainable Farming Scheme poses 'huge risk' to future of Welsh dairy

The Welsh government’s Sustainable Farming Scheme poses 'a huge risk' to the dairy supply chain if the proposals in their current format are taken forward.

Welsh dairy farmers could produce 368 million litres less milk if the SFS is rolled out in its current form, according to Welsh government commissioned research.

NFU Cymru said the proposals must be changed to "safeguard the continued production of quality, nutritious and climate friendly milk in Wales".

Dairy production is worth almost £850 million to the Welsh economy and accounts for almost half (47%) of the total output of agricultural production in Wales.

The sector also generates significant employment, estimated at more than 5,300 people directly employed on dairy farms.

In addition, with around 50% of milk produced in Wales being processed in Wales, the sector supports a further 1,250 jobs in the wider dairy manufacturing sector.

As part of the Welsh government's post-Brexit proposals, the Basic Payment Scheme is to be fully phased out by 2029 and replaced by the SFS from 2025.

Farmers who wish to participate in it will receive a Universal Baseline Payment in return for delivering 17 Universal Actions and two scheme rules.

However, controversially, the rules include the requirement for farms to have at least 10% tree cover and 10% of the farm managed as habitat.

A time limited stability payment which reduces to zero by 2030 is also proposed by the Welsh government.

However, according to research on the potential economic effects of the SFS in its current form, dairy farmers could, in turn, produce 368m litres less milk.

"To put this into context, that is equivalent to taking over 648 million pints of milk off the shelves around the world," said NFU Cymru dairy board chairman, Jonathan Wilkinson.

The modelling published by Welsh government also suggests that its proposals could see more than 45,000 less dairy cows in Wales.

"Not only will this put thousands of livelihoods across the supply chain at risk but, by destocking our farms, we become less productive to the detriment of not only our net zero ambitions but also consumers," Mr Wilkinson added.

“The Welsh government Rural Affairs Minister has committed that she wants future agricultural policy in Wales to work for all farmers and this must include dairy farmers."

In response to the situation, farmers have conducted a series of go-slow tractor protests across Wales, and unions and organisations have held dozens of events and discussions, with some attracting thousands of participants.

Earlier this month, dozens of concerned farmers protested outside Rural Affairs Minister Lesley Griffiths' own office in Wrexham.

And later this week, NFU Cymru will place 5,500 farm wellies on the steps of the Welsh parliament as part of a stunt depicting the 5,500 agricultural jobs that are projected to be lost based on 100% take up of the SFS.

Mr Wilkinson concluded: "I urge the minister to listen to the views expressed to her by the Welsh dairy industry and to change her proposals to safeguard the continued production of milk in Wales for generations to come.”