The Covid-19 situation has led to a crisis in the dairy sector and urgent support measures are needed to save the industry, the Farmers’ Union of Wales has stressed. 

Following the closure of pubs, clubs and restaurants across the UK at the end of March, some dairy processors supplying the service sector found that their market had disappeared and orders have been cancelled overnight.

The Government enforced closures have led to rapid drops in the spot market price for milk and some farmers have been forced to dispose of their milk down the drain due to processors not being able to make a collection.

FUW Milk and Dairy Produce Committee Chairman Dai Miles said: “The situation is critical. Many farmers who have contracts with those dairy processors had their price cut, in some cases they are facing delayed payments and others had no choice but to dispose of their milk.  

“Those farmers will also not be compensated by their insurance companies as ‘Market Failure’ is not covered by policies. Therefore all the cost and loss is borne by the producer.

“This is not just about a few dairy farmers but the ramifications it will have on the whole dairy sector are immense.There is an urgent need for support packages to be made available immediately. ”

Around 25% of dairy farmers in Wales supply processors who have been affected by the loss of the service sector.

In teleconferences with the UK and Welsh Government, the Union has stressed that there are many who are unprotected and their businesses will fail if no help is offered. 

The Farmers’ Union of Wales is urging the public to follow Government guidelines and respect the countryside code in light of the ongoing Coronavirus crisis.

Having received numerous calls from farmers about the public extensively walking across farm land, leaving gates open and letting their dogs run free, Union President Glyn Roberts is urging the public to follow the rules.

Speaking from his farm in North Wales, Mr Roberts said: “ There can be no confusion - public paths and land in many popular areas across Wales have been closed to avoid crowds gathering for very good reason.

“However, despite clear guidance we are still receiving calls from members that the public are ignoring the lockdown rules, leaving gates open and letting their dogs run free on land with livestock on.

“What the public must remember is that when they use public paths crossing farmland, they are walking through someone’s home and workplace. Many of our farmers fall into the vulnerable category and will be self-isolating while also tending to their livestock.

“If they fall ill, there will be nobody to care for their animals and produce the food we all need.”

The Farmers’ Union of Wales (FUW) has welcomed a range of emergency measures announced by the Welsh Government in relation to the Basic Payment and Glastir Schemes.

In line with the FUW’s calls, Minister for Environment, Energy and Rural Affairs, Lesley Griffiths announced today (April 1) that the deadline by which Single Application Forms must be submitted had been extended by a month, to the 15th of June.

In response to concerns raised about Crop Diversification requirements following the recent flooding and the added pressure and uncertainties caused by the coronavirus pandemic she also confirmed the requirements had been withdrawn completely for the 2020 Basic Payment scheme year.

An additional £5.5m in loan support has also been allocated to support farmers who have yet to receive their 2019 BPS and/or Glastir payments. 

The Farmers’ Union of Wales has written to UK supermarkets and the British Retail Consortium asking them to ensure the long term viability of family farms are protected during the Covid-19 pandemic. 

The call comes after dramatic falls in farmgate prices hit livestock and dairy producers over the past ten days as a result of changes to consumer buying patterns and the closure of food service sector outlets such as cafes and restaurants.

Average lamb prices fell by a quarter during the weekend of 21st and 22nd March, while many UK milk processors have announced significant cuts to what they pay milk producers and delayed payments for milk deliveries.

“High levels of ‘panic buying’ have led to immediate shortages of certain foodstuffs and empty shelves,” said FUW President Glyn Roberts.