Welsh dairy farmers getting sour deal over milk prices - more promotion and protection needed says new report

30 November 2009

The Welsh Government should establish an independent Welsh Dairy Champion to promote and represent the industry’s interests, according to a new report from the National Assembly for Wales’ Rural Development Sub-committee.

The report also says that a UK Ombudsman is needed to help protect the dairy farming industry in Wales, and calls on public bodies to increase the proportion of dairy products they procure locally.

The inquiry held by the Rural Development Sub-Committee found farmers weren’t getting a fair deal over the price they were paid by retailers for milk compared to the price charged by retailers to consumers, and that action was needed to tackle this issue if the industry in Wales is to have a secure future.

The committee found the number of milk producers in Wales had fallen by a third between 2003 and 2008 from 2, 845 down to 2, 149 and its proposals aim to halt this trend.

Chair of the committee Alun Davies AM said: We are seeing an alarming decline in our dairy industry for a variety of reasons but chief among them appears to be the disparity in payments to farmers for their produce compared to prices charged by retailers.”

"We urge the Welsh Government to put pressure on the UK Government to establish a UK Ombudsman to protect producers’ interests. We also believe there is more the Welsh Government can do itself through establishing a Welsh Dairy Champion and public procurement.”

Among the other recommendations in the report is a need for further investment to improve the infrastructure to improve efficiency and effectiveness, a new strategy to ensure proper training so that an adequate number of qualified new entrants are attracted to the sector every year, and a move to encourage farmers to concentrate more on value added premium products rather than mass produced ones.

2What we would like to see is the Welsh Government encouraging demand for quality Welsh dairy products. We heard evidence of the energy put into promoting Welsh beef and lamb and would like to see similar efforts being made for Welsh cheese. We would also like to see the Welsh Government’s new agri-environmental scheme Glastir being made more accessible and attractive to our dairy farmers,” said Mr. Davies.

The inquiry took evidence from farming unions, dairy producers, promoters and the Minister for Rural Affairs for the Welsh Government Elin Jones AM.

Rural Development Sub-Committee web pages