The Farmers' Union of Wales today welcomed a recommendation by MPs that legislation should be introduced to protect farmers from farmgate milk price cuts if improvements fail to materialise under the existing dairy voluntary code of practice.
In a report published today, the Commons Welsh Affairs Committee says the voluntary code must be given a chance to work but, if tangible improvements are not forthcoming, the Government must be prepared to legislate.
"Although the code comes with quite a lot of caveats, we do support it and are willing to give it a chance," said FUW senior policy officer Hazel Wright. "But what we need to look at is some form of legislation that will come in swiftly if the code does not work.”
Dr Wright said that evidence was already emerging regarding processors opting out of the code, in full or in part.
"As such, there needs to be the threat of legislation and I think that will help push the code forward.
"The ability of the code to work for every producer to the same degree is probably limited and we have concerns that purchasers will cherry-pick elements of the code that they want and leave producers in a slightly worse position."
Dr Wright said the recently-established Groceries Adjudicator’s powers should also be expanded. "We would like to see a system whereby the dairy code is properly policed so that we can tell straightaway if the purchasers are cherry-picking and if they are not playing fair,” she added.
In written evidence to the committee the union stated that Wales has about 1,900 dairy farmers - about 20% of the total amount in England and Wales - yet the number of farmers has declined steadily since the end of the last century.
Compared to 2002 there are 40% fewer dairy farmers in Wales and last summer the industry suffered a major crisis caused by price cuts announced by retailers and processors. Although some price cuts were later withdrawn, the long-term sustainability of the industry remains uncertain.
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Dilwyn and Geraint (right) Jenkins in the milking parlour at Cerrigcaranau Farm, Talybont, near Aberystwyth[/caption]
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Before taking evidence at Aberystwyth University last November, Welsh Affairs Committee members paid a 45-minute visit to 510-acre Cerrigcaranau Farm at nearby Talybont to hear the views of dairy farmer and FUW member Dilwyn Jenkins and his sons Eifion (29) and Geraint (25). Pictured (from left) are FUW vice president Brian Walters, farmer's son Geraint Jenkins, Mark Williams MP, David Davies MP, Jonathan Edwards MP, FUW Ceredigion county executive officer Caryl Wyn-Jones and farmer's son Eifion Jenkins in discussions.[/caption]