A former chairman of the Farmers' Union of Wales milk and dairy produce committee is to lobby MPs at Westminster today (Wednesday April 16) about imminent cuts in farmgate prices for milk being sold for cheese.
"Welsh dairy farmers who supply milk for cheese production are seriously concerned following reports that major cheese processors are planning milk price cuts for farmers of around 2p per litre within the next few weeks," said Eifion Huws, who represents north Wales on the union's finance and organisation committee.
He plans to raise the issue during Anglesey Day, hosted by local MP Albert Owen, at Portcullis House where MPs will be invited to sample dairy products produced on the island.
“Last year dairy farmers across the UK held noisy protests against the slashing of liquid milk prices by 2ppl and the price being paid to those on cheese contracts is also under pressure,” said Mr Huws.
“Retailer profit on cheese is even higher than that for milk and DairyCo estimates that the retailer gross margin on mature cheddar stood at almost 50 per cent between 2011-2012.
“We are not suggesting a rise in the costs paid by consumers for cheese. Instead we advocate that retailers reduce their overly large profit margins and pay fairer wholesale prices in order to more equitably distribute supply chain profits. The share left for producers in the cheese supply chain is currently unsustainable.
“These cuts will be disastrous for the Welsh dairy industry which is already suffering from lower milk volumes following a major delay in the start of the spring grass growing season due to the recent cold weather. The future viability of this sector is under threat," added Mr Huws.
According to Welsh Government statistics the number of dairy farms in Wales reduced by over 800 from 2,727 in 2006 to 1,908 in 2011.