THE Farmers' Union of Wales today broadly welcomed the Welsh Assembly Government's decision to invest £3.3 million in the Welsh dairy industry over the next three years.
The project, funded by the Supply Chain Efficiencies (SCE) scheme operates through the Rural Development Plan for Wales 2007-2013, which is funded by the Welsh Assembly Government and the European Agricultural Fund for Rural Development.
The SCE scheme provides financial support for co-operation projects that will develop new products, processes and technologies in the agriculture, food and forestry sectors.
The aim of the project is to help improve levels of efficiency, sustainability and added value in the dairy supply chain.
FUW milk committee chairman Eifion Huws said: "We are glad that the government has heeded our warning and are planning to invest in what is truly a struggling industry.
"I am sure that many farmers will find advice, support and information on issues such as energy efficiency, maximising production efficiency and profits, beneficial, but advice alone will not help tackle the problems that dairy farmers face on a daily basis.
"Without a fair price for their milk, a number of farmers will find that they don't have the means to act on the advice given to them.
"The crux of the matter is that many farmers are still being paid less for their milk than it costs to produce it.
"Of course this investment is a step in the right direction but without greater transparency throughout the supply chain farmers will continue to be short changed.
"Farmers in Wales are already bearing the brunt of lower milk prices compared to the UK as a whole and steps need to be taken to ensure that Welsh farmers are given a level playing field.
"All the sustainability and efficiency measures in the world cannot make a dairy farm profitable without a prolonged period of price stability.
"Only then will farmers have the confidence to invest in the future."