The proposed closure of Dairy Crest’s Proper Welsh Milk dairy at Whitland in Carmarthenshire is a major body blow for the region's capacity to process milk locally, a Farmers' Union of Wales official said today.

FUW vice president Brian Walters, who runs a dairy farm near Carmarthen, said: "There is already a lack of processing capacity for milk in Wales and this move, so soon after Dairy Crest took over the dairy, comes at a time when there are increasing calls for more local processing.

"As a local dairy farmer I think it is a great pity because we need more processing capacity in Wales, not less, to help cut down on food miles and prepare ourselves for the abolition of Milk Quota in 2015.

"If we are hoping to produce more milk in the future to meet an expanding market, we need to be able to access more processing capacity locally, not further away."

Dairy Crest announced it is starting consultation with the 31 employees and their representatives regarding the proposed closure of Proper Welsh Milk dairy which it bought from administrators in March this year with the aim of maintaining production and employment and developing new products at the site.

However, production volumes had fallen short of expectations and significant investment was needed to bring the site up to Dairy Crest standards, they added.

Dairy Crest claimed lower sales and higher costs meant it was not possible to operate the site economically and they promised to do all they can to help employees affected by these proposals.

They said they would also work with customers to offer them alternative packing arrangements and continue to recruit farmers and invest in milk collection facilities around Carmarthen.

[caption id="attachment_1466" align="aligncenter" width="200"] FUW vice president Brian Walters[/caption]

Strong views about the future of farming were expressed when two Aberystwyth University first-year agriculture students went head-to-head in the final interviews for the top awards in the Farmers' Union of Wales higher education bursary scheme.

Nineteen-year-olds Kathryn Morris of The Belan, Berriew, near Welshpool, and James Price of Ackhill Farm, Presteigne, were shortlisted for interview by a panel of judges during this week's Royal Welsh Winter Fair in Builth Wells.

Both live on beef and sheep farms and submitted 1,000-word essays with their entry forms. Kathryn chose the topic: "Are we a nation of park keepers or food producers?" while James opted for "Should farmers be food producers or fuel producers?"

James was chosen as the winner of the £1,000 bursary by a three-man judges' panel and Kathryn was awarded £500 as the runner-up.

James spends as much time as he can working on his home farm and for other local farmers. "I have a passion for farming, especially livestock, and it is the only career I have ever wanted," he said.

Representing Presteigne YFC, he has won the county federation's junior stockman of the year competition and has been the club's treasurer.

His essay explained that, with climate change at the top of the agenda for governments across the world, bio fuels are becoming an increasingly popular source of energy, often replacing food crops or using products previously used for food.

"However, with an ever-increasing population the demand for food is inevitably going to increase so farmers are going to need to produce more food off less land in an environmentally friendly way.

"Maize being grown for bio digesters is a very controversial topic as many people think that it would be better to feed the maize to livestock to produce food than to put it into a bio digester.

"However, the subsidies on the energy produced from the digesters are so large that the maize is worth far more money to them, as an energy crop, than it is to livestock farmers as a feed. This raises the question - is bio fuel a viable option without the subsidies placed on it by government?

"Overall I think that there are many opportunities presented to farmers by being energy producers and these should be considered and kept in mind with every decision.

"I do, however, feel that food production is more important as there are already people in the world who are short of food and this will only get worse as populations increase.       

"Bio fuels are a good addition to the agricultural industry but should not become our main goal."

Kathryn has been a keen farmer from an early age - "helping on the farm even before I could read". Before starting her agriculture and countryside management course at Aberystwyth she took a gap year to gain practical experience of taking responsibility and making management decision on the family farm.

She also runs a small flock of pedigree Texel ewes and is an active member of Berriew YFC.

In her essay she urged the agriculture industry to see itself as both park keepers and food producer. "It is not in the interest of farmers to pollute the very land that their livelihoods depend on.

"However, the pace at which the industry develops would be much more rapid if attitudes were to change. If farmers were provided with the education and marketing skills they would be able to sell their produce to local people at affordable and fair prices.

"Every item of food would be traceable and the chain would be much shorter. It would create greater revenues for agriculture but importantly would drastically reduce carbon emissions by decreasing food miles and the climatic issues that this causes for British wildlife."

FUW agricultural education and training committee chairman Alun Edwards complimented both finalists on their thought-provoking entries and said the judges were looking forward to following their respective future careers in agriculture.

"There continues to be a problem in our schools and colleges with how agriculture is perceived so it's a huge responsibility of ours to promote the industry as a career.

"Both our finalists have shown there is potentially a good career in farming and it's great to see they're also interested in their local communities and giving something back." 

During the Winter Fair the union launched its bursary scheme for further education students which will also have a £1,000 award for the winner and £500 for the runner-up.

Application forms can be obtained from FUW Head Office at Llys Amaeth, Plas Gogerddan, Aberystwyth SY23 3BT (Tel: 01970 820820) or from any of the union's county offices.

[caption id="attachment_2689" align="aligncenter" width="300"] James Price and Kathryn Morris with the bursary judges (from left) FUW council’s Pembrokeshire delegate Dafydd Williams, Alun Edwards and FUW deputy president Glyn Roberts.[/caption]

[caption id="attachment_2690" align="aligncenter" width="300"] James Price and Kathryn Morris[/caption]

Failure by successive Welsh Governments to instigate modelling work early enough has made it impossible to respond definitively to the Welsh Government’s consultation on the post 2014 CAP Payment regime, according to a majority of Farmers’ Union of Wales committees.

Twelve of the union’s county executive committees and eight central policy committees had considered the consultation paper, issued last July, ahead of the consultation deadline on Saturday (November 30).

The consultation dealt with an array of complex issues relating to the future CAP payment regime in Wales, with the single most important issue being which flat-rate payment model Wales should move towards after 2014.

Proposals had included a two-tier model with differing payment rates per hectare for moorland and the rest of Wales and a three-tier model with differing payment rates per hectare for moorland, Severely Disadvantaged, and "other" land.

“However, modelling of the likely impacts of different payment ratios and changes to the moorland map has continued throughout the consultation period, meaning the majority of our committees felt it was impossible to provide a definitive answer to the key questions posed in the consultation paper as the goalposts were continually being moved,” said FUW president Emyr Jones.

Mr Jones said that the conclusion was hardly surprising as people were unlikely to support a particular model when the geographic boundaries and payment rates for that model were unknown.

“While members praised the modelling work undertaken since June 2012, and the Welsh Government staff who have undertaken that work, there is an overwhelming feeling that the industry has been let down by successive Welsh Governments’ reluctance to instigate detailed modelling until the 11th hour.

“If we had been required to implement CAP reform in 2014, as originally intended, we would be in an even greater mess,” added Mr Jones.

In July 2009 the FUW warned that "…the movement to flat-rate payments is inevitable, and we need to start looking at all the options in order to find the best solution for the Welsh industry".

Those sentiments were reiterated in July 2011 when the FUW told the then newly-appointed deputy minister Alun Davies that there was a "desperate need for the Welsh Government to drive ahead with modelling work so we know where we currently stand, and where we want to be under the new CAP, given the inevitable move away from the historic single payment model...the delay in undertaking such work is regrettable".

“Four-and-a-half years after our initial warnings, we are sadly now in an ‘I told you so position’, which we definitely do not want to be in, that has caused extreme anger among members and has made it impossible for members to respond to a key question in the consultation document,” said Mr Jones.

In terms of the transition period over which farm payments should move from an historic to a flat-rate based system, Mr Jones said the union maintained its belief that a transition period of more than five years was needed - particularly if the failure to start modelling work soon enough was going to increase disruption for members.

“Whenever we have consulted on the transition period, the vast majority of members have favoured seven to 10 years. The Welsh Government originally supported that view but has since opted for five years.

“Wales has the option to implement an ‘internal convergence’ model whereby entitlement values move towards, but do not reach common values by 2019, and it is this option which is most in line with the views expressed by the majority of members on successive occasions.

“Such a system would provide those businesses which will be hit most severely by the move to a flat rate system with more time to make essential changes to their businesses in the face of falling CAP receipts.”

Members also expressed their opposition to the transfer of funds from Pillar 1 to Pillar 2, and the belief that any transfers should be match funded.

“The Welsh Government wishes to minimise disruption for Wales’ agriculture industry and, given that the Pillar 1 budget will be 1.6% lower in nominal terms after 2014 and even lower in real terms, modulation at any significant rate would add to the disruption felt by the industry and Welsh businesses,” said Mr Jones.

“Wales currently has a modulation rate of 11.5% and keeping Pillar 1 payments at the same level in nominal terms would mean a reduction in modulation of around 1.5% - while keeping the receipts the same in real terms would mean a far greater reduction.

“With a consultation on the future Pillar 2 Rural Development Plan not due out until next year, and the majority of Pillar 2 payments going towards replacing income foregone as a result of agri-environment measures, it would be wholly unacceptable for the maximum modulation rate of 15% to be applied without any guarantee that such a reduction will ultimately result in an increase in farm incomes for the vast majority.”

Farmers looking for advice on issues such as CAP reform, renewable energy, pylons, tenancy rights, compulsory purchase and rural property issues should visit the Farmers' Union of Wales stand at next week's Royal Welsh Winter Fair at Llanelwedd, Builth Wells.

Land agents from Davis Meade Property Consultants will be available for a free consultation on the stand during the two-day event on Monday and Tuesday (December 2 and 3).

“This will be an opportunity for farmers to get an independent opinion on issues that are of concern to them,” said FUW land agent Philip Meade.

“Whether it’s a simple question on CAP reform, a compensation claim or a more complex tenancy matter we will be pleased to help.”

You can make an appointment by contacting Davis Meade Property Consultants on 01691 659658, email: This email address is being protected from spambots. You need JavaScript enabled to view it. or just drop in for a cuppa and a mince pie at the FUW stand.