[caption id="attachment_4951" align="aligncenter" width="300"] FUW president Gareth Vaughan - left - with HSBC head of agriculture Allan Wilkinson on a visit yesterday - October 18 - to Caeau Newydd dairy farm, at Dryslwyn near Carmarthen.[/caption]

There is a sense of opportunity for dairy farmers worldwide from an expanding market but matters are a great deal more challenging in the UK, HSBC bank's head of agriculture Allan Wilkinson said last night (Monday, October 18).

Speaking at a Farmers' Union of Wales reception on the eve of the Welsh Dairy Show in Carmarthen, Mr Wilkinson said the UK dairy industry had witnessed massive change since the demise of the Milk Marketing Boards in 1994.

"There has been a period of catch up with the rest of Europe. With that change has come an ever greater reliance on a market-place driven milk price which, by its very nature, will vary depending on the ultimate end use and the strength and efficiency of the chain involved to get it to the consumer.

"It has even manifested itself into the current discounting of fresh liquid milk on the supermarket shelf, traditionally seen as the place for highest milk prices for the UK producer."

Added pressures for UK dairy farmers are: bovine TB which has been extremely challenging to all those affected; a more testing than usual growing season stretching some silage stocks; and higher winter feed costs for the majority of producers reliant on bought-in concentrates.

"Add these to a seemingly increasing administrative burden and the prospect of the reform of the CAP for 2013 onwards, and the pressures are there for all to see," said Mr Wilkinson.

"Producer numbers have fallen considerably in the last decade, though UK milk output has remained just below historic levels. Those remaining have expanded 'to fill the gap'.

"There is indeed a majority of producers who are no better than breaking even at present. That can be no surprise to anyone. Between the best and the worst, however, the range seems greater than ever, with the very best achieving total costs of production well below 20p/litre.

"Milk producers who have the combination of strong and efficient levels of technical output, and low costs of production, will have the ability to stand fluctuating milk prices as the world market place moves. They will remain successful, and they will continue to invest in the future, making the most of their current position.

"Milk production in this part of the world has many advantages that are the envy of the world. Please seize them, be they on farm, based on grass production, or from the provenance that the market place can and should offer you.

"Farmgate milk price has always been and is still very important to the producer. Obviously the higher it is, the greater the chance of profit - providing costs remain in check as well.

"All parts of the dairy industry must recognise the need for a sensible return for the future continued success of the whole. Knowing in greater detail your customer or supplier and working more closely with them - who ever they are - will become more important, irrespective of position within that chain.

"Retailers, processors or farmers are equally interdependent upon the next part of that chain. That is true now, and from what I see of dairying elsewhere, individual producers and producer groups have an increasing positive, even collaborative role to play going forward.

"So do I see a positive outlook for UK dairying? Yes I do, and I say that from the point of view of the UK market place, the ever demanding but receptive UK consumer and the wider global position.

"We have a strong home market, but it is not ours by right. It will demand continued attention, or it will become someone else's market. It may require fresh thinking to make the most of the opportunity ahead.

"The future will be more challenging than hitherto, it will contain continued price volatility and the market will remain complex. We can only plan forward for a strong UK dairy farming industry with the global market place and food chain well understood.

"The current environment places pressure on the individual producer, but it also suggests to me a substantial pressure in the processor sector as they seek to re-invest and plan for their long term."

Earlier, FUW president Gareth Vaughan stressed that the steep decline in the number of Welsh dairy farmers will continue so long as supermarkets continue to take a bigger share of the profits from milk sales.

"New figures released by DairyCo earlier this month revealed dairy farmers in Wales and England received an average 23.8p per litre for their milk during 2009/2010 compared to 25.8p the previous year. But the retailers' share of the price went up from 18.8p to 22.4p.

"These figures underline our fears for the traditional Welsh dairy farm which has declined sharply in numbers from 2,727 in 2006 to 2,094 last year.

"We have to ask whether the prices paid to Welsh dairy farmers are sufficient to give them a sustainable return to enable them to invest in their business and continue to supply milk in an efficient and profitable manner.

"The Welsh dairy farm has been the backbone of community life in much of rural Wales for years but these figures don't provide any comfort for the future.

"I fear that the decline in dairy farm numbers will continue until there is a change of heart by the retailers and they start paying producers the kind of prices they badly need to allow them to fully meet their costs and invest for the future."

Following the launch by Hybu Cig Cymru of a consultation paper on increasing red meat levies in Wales, the Farmers' Union of Wales is consulting its county branches on the proposed increases.

The first levy increase in a decade, if approved, would see farmers and processors paying an extra 16p for sheep, £1.10 for cattle and 25p for pigs entering the human food chain.

Responding to the consultation's launch, Aeron Prysor Jones, chairman of the FUW's livestock, wool and marts committee said: "The union's hill farming and livestock committees were recently given a presentation by HCC's chief executive, Gwyn Howells, about the work of HCC and the proposed increase.

"HCC undertakes a great deal of important research and promotion work which many farmers are unaware of. The reduction in livestock numbers which has occurred over the past years, coupled with other factors, has led to a significant drop in HCC's funds, and this has threatened much of that work.

"The industry now needs to carefully consider the implications of maintaining the status quo or supporting a rise in levy, and the union will respond to the proposals reflecting our members views."

Mr Jones also expressed his major concerns regarding the implication of falling livestock numbers.

"During HCC's presentation, members expressed major concerns over the fall in Welsh livestock numbers, and that the new Glastir scheme will accelerate this, further reducing the money available for HCC to undertake its functions.

"This is an outrageous situation, given that our major competitors such as the Irish will continue to receive significant LFA payments which aid production."

[caption id="attachment_4946" align="aligncenter" width="300"] The voice of Welsh red meat promotion agency Hybu Cig Cymru’s 2010 TV advertising campaign who often seeks inspiration by walking the Dyfi Valley farm where his father was born.[/caption]

Farmers' Union of Wales leaders walked in the footsteps of Welsh actor Matthew Rhys when they visited his cousin's family farm in Mid Wales yesterday (October 13).

FUW president Gareth Vaughan and deputy president Emyr Jones called on the union's local chairman, 24-year-old Sion Evans, on their way to address members at a branch meeting in Pennal, near Machynlleth.

Sion farms with his parents Hywel and Ceinwen who are uncle and aunt to Matthew who often goes back to his roots and visits their farm at Marchlyn in the Dyfi Valley where his father was born.

Matthew, who rose to fame playing alongside Kathleen Turner in the West End stage production of The Graduate, has walked and talked in the Dyfi Valley with local wildlife expert Iolo Williams for S4C's "Crwydro" series.

Marchlyn, which extends to just over 300 acres, is a typical family farm with 500 Welsh Mountain ewes, 200 of which are crossed with Suffolk and Blue Face Leicester.

In addition 120 ewe lambs are kept annually as replacements. Stocking also includes 25 suckler cows crossed with a Charolais bull. The farm is in the Tir Cynnal scheme, and has expressed an interest in the Glastir scheme.

As with many family farms it diversified into tourism 15 years ago and outbuildings have been converted to bed and breakfast accommodation which can accommodate up to 11 persons. Some outbuildings can also be let as self-catering accommodation.

Sion has a keen interest in the agricultural industry and after completing his A levels at Coleg Meirion Dwyfor, Dolgellau, he attended the Scottish Agricultural College at Dumfries where he obtained an HND in agriculture in 2005.

He has since gained valuable experience visiting New Zealand, in particular perfecting his shearing skills. He now takes time out of the farm during June and July each year as a shearing contractor, as well as occasionally other farm work.

"Matthew is a regular visitor and he enjoys walking the farm and sometimes being involved in the faming activities," he told the union's leaders.

"We are now looking forward to the launch of his book on November 23 about his experiences crossing the plain in Patagonia - ''Croesi'r Paith''," added Sion, who is also hoping for an opportunity to visit Patagonia in the future.

In the "Crwydro" programme Matthew revealed he really wanted to be a farmer when he was younger but his grandmother used to try to talk him out of it by saying he would be better off getting a "proper" job.

"She wanted me to be a chef!" he told Iolo. "I don't know whether or not I could be a farmer now having lived all my life in towns and cities.

"Like many people, I have a romantic idea about farming although I do understand how difficult it is."

Explaining why he likes to return to Gwynedd when his busy schedule permits, Matthew added: "I love coming back to this area to relax and enjoy the beautiful countryside.

"I have lots of family here and I enjoy hearing stories about my grandmother and grandfather. The peacefulness of the place certainly appeals and is a pleasant contrast to the hustle-bustle of city life."

[caption id="attachment_4940" align="aligncenter" width="300"] Stephen Crabb - furthest right - inspects a badger sett with FUW Pembrokeshire members.[/caption]

Preseli Pembrokeshire MP Stephen Crabb has visited a farm near Neyland to hear first hand how bovine TB restrictions continue to affect the farming community in his constituency.

His visit, organised by the Farmers' Union of Wales, took place just as the UK Coalition Government launched a consultation on bovine TB calling for individuals to submit views on the launch of a carefully-managed and science-led policy of badger control, as part of a package of measures, in areas of England with high and persistent levels of bovine TB in cattle.

The Welsh Assembly Government also announced that they would be inviting views on proposed legislation for badger culling as part of a comprehensive programme to eradicate bovine TB in cattle in West Wales.

Its draft Badger (Control Area) (Wales) Order 2010 will allow a Government-managed cull of badgers, alongside additional cattle measures, in an Intensive Action Area in North Pembrokeshire. This action comes after the Badger Trust won a court appeal against a cull in July 2010.

"We brought together farmers from across the county to discuss issues ranging from tenancy farming to affordable housing but the discussion centred on the devastating impact of bovine TB," said the FUW's Pembrokeshire county executive officer Rebecca Williams.

"The farm where the visit took place has been under restriction for bovine TB for most of the last five years and Mr Crabb also met a farmer whose herd had been wiped out by the disease."

Government statistics suggest that, in parts of Wales, bovine TB has escalated to unsustainable levels over the past 25 years. This is placing a huge financial burden on the Government, taxpayers and farmers.

After the visit Mr Crabb said: "I am pleased to have had the opportunity to meet with farmers and representatives from the FUW in Pembrokeshire.

"Farming is extremely important to Pembrokeshire's economy and way of life. It is important that we take action to ensure that farming in the UK has a viable and sustainable future.

"I was disappointed to hear that bovine TB continues to have a devastating impact on the farming community in the county. It vital that we eradicate bovine TB in Wales by tackling all sources of the disease and I welcome the recent consultations launched by the Conservative-Liberal Coalition Government in London and Plaid-Labour in the Welsh Assembly Government.

"I hope that we can now make real progress to support the farming community and eradicate the bovine TB."