October 25, 2024

Government of Wales, UK and Welsh consumers urged to support dairy industry amid growing challenges

At the Welsh Dairy Show in Nantyci, Wales, UK, National Farmers Union (NFU) Cymru has called on the Welsh government and consumers to back the dairy farming sector to provide a much-needed boost in confidence.

The call comes in response to figures from the UK Agriculture and Horticulture Development Board (AHDB) showing that over the past five years, 17% of dairy farmers in Wales have exited the industry. The challenges facing these farmers include the high cost of complying with environmental regulations, market volatility, rising input costs, the pressures of bovine TB, and uncertainties surrounding the proposed Sustainable Farming Scheme (SFS).

According to NFU Cymru, these factors are severely affecting Welsh dairy producers. The sector, which contributes over £850 million to the Welsh economy and accounts for almost half (47%) of the gross output of Welsh agricultural production, is experiencing significant strain.

Jonathan Wilkinson, chairman of the NFU Cymru Dairy Board, emphasised the importance of the Welsh dairy sector. "The Welsh dairy sector provides climate-friendly, high-quality, and nutritious milk 365 days a year to consumers both in Wales and beyond. The sector supports over 5,300 jobs on Welsh dairy farms, with additional employment generated in milk processing and allied industries, all contributing to the prosperity of rural communities in Wales."

Despite some market improvements, Wilkinson noted that Welsh dairy farmers are struggling to gain the confidence needed to make key business decisions. He pointed out that farmers are being asked to make substantial capital investments to meet environmental legislation requirements, while continuing to combat the damaging effects of bovine TB, which threatens their livelihoods. Furthermore, high interest rates and increasing input costs are limiting farmers' cash flow and ability to invest in their operations.

"The uncertainty surrounding the proposed SFS scheme adds to the pressure, as dairy farmers question whether it will be a viable option for the sector," Wilkinson added. "Given these circumstances, it is unsurprising that over 280 dairy farms in Wales have ceased operations in the past five years."

Wilkinson highlighted the growing global demand for dairy products and the opportunities the sector offers. However, he stressed the need for confidence in the industry's future to ensure the next generation of Welsh dairy farmers can thrive.

He urged consumers to support Welsh dairy farmers by looking for products featuring the Welsh flag when shopping or consuming dairy products outside the home. He also called on the Welsh Government to collaborate with NFU Cymru to address the challenges facing the sector and to protect the continued production of high-quality, nutritious, and climate-friendly milk in Wales.

-      NFU Cymru