Procurement of Welsh dairy produce vital for home industry, FUW tells UK supermarkets

In the face of the current dairy crisis, the Farmers’ Union of Wales is once again calling on major UK supermarkets to commit to the procurement of Welsh dairy produce, and to ensure that the prices paid for dairy products are such that confidence in the long term future of the sector is revived.

Speaking after a recent FUW milk and dairy produce committee meeting, chairman Dai Davies said: “The FUW has written to the leading supermarkets in the UK to highlight that last year saw many months of consecutive downward milk pricing, which has caused major problems for the sector.

“Whilst some forecasts predict a decline in global milk supplies in the latter half of 2015, the Russian trade embargo, coupled with reduced demand in China and a weak economic environment, will likely delay price rises beyond any potential downturn in production.”

According to figures supplied by Defra, the average November UK farm-gate milk price was more than 16 percent lower than the same month in 2013 and is the lowest farm-gate price since September 2012.

“The falling dairy prices experienced by producers in Wales raises significant concerns within the dairy industry, and a lengthy delay in milk price recovery now seems certain due to a continuing supply and demand imbalance within the global marketplace.

“Factors such as low milk prices, poor profitability and long-term uncertainty in the sector have severely undermined confidence in the long term sustainability of this industry; the very nature of which requires a long term commitment and investment from producers,” added Mr Davies.

Whilst the Union recognises that dairy farmers supplying supermarkets on a dedicated supply contract have received more favourable milk prices, such farmers represent only a small fraction of the Welsh dairy sector – around 4 percent of production - and are therefore unrepresentative of the industry as a whole.

“Failure to secure commitment by providing sustainable prices for dairy should be a major concern for all those within the supply chain.  Between January and September 2014, UK dairy imports of cheddar cheese, speciality cheese and butter were around 77,000, 271,000 and 42,000 tonnes respectively and the union is therefore urging the supermarkets to ensure that a concerted effort is made to source dairy products from within our own shores,” added Mr Davies.

FUW calls for greater government action to strengthen dairy sector

The Farmers’ Union of Wales has today welcomed the publication of the Environment, Food and Rural Affairs Committee (EFRA) dairy prices report and called on the UK government to correct those issues which have allowed supply chain imbalances to continue.

In its written evidence to the inquiry, the FUW called for an expansion of the Groceries Adjudicator’s power to cover all dairy producers and not just the small minority on retailer aligned contracts.

At present, retailer aligned contracts only account for about four percent of the milk produced in Wales and the union was therefore pleased to note the recommendation to include all dairy farmers in the remit of the Groceries Code Adjudicator.

The FUW agrees with the call on the government to activate the Adjudicator’s power to fine retailers before the election in May and has stated that it is essential that the Adjudicator can use this power properly and swiftly in order to bring retailers exhibiting unfair practises to account.

“The union has been mindful of the lack of progress on producer organisations in Wales and would seek more support from government to allow farmers the choice to join a producer organisation in order to increase their power in the supply chain,” said FUW milk and dairy produce committee chairman Dei Davies.

It has been a long-standing policy of the FUW to promote high quality Welsh produce and the union continues to state that a lack of transparency in labelling has misled consumers.

“Consumers must be able to make informed choices when purchasing milk and dairy products and we are pleased to see that the report calls for clearer regulation on the labelling of such produce.

“We are happy to see that the report calls on government to do more to promote dairy produce domestically and abroad and as such we would like to see the UK government lead by example with promotion beginning at home through greater local procurement in our hospitals and schools,” added Mr Davies.

Farmers have faced months of consecutive price drops due to an imbalance in global supply and demand.  Whilst recovery for the sector may be some way off, it is essential that lessons are learnt from the current crisis in order to offer dairy producers more protection against rapid cuts in milk prices.

“Market volatility is forcing dairy producers out of business at an unprecedented rate and it is the responsibility of the UK government to do everything possible to protect our dairy farmers from market forces which are beyond their control,” added Mr Davies.

FUW members voice milk price concerns

[caption id="attachment_4220" align="aligncenter" width="300"]from left to right – FUW senior policy officer Dr Hazel Wright with local AM Alun Ffred Jones and shadow minister for sustainable communities for Plaid Cymru, Llyr Huws Gruffydd AM from left to right – FUW senior policy officer Dr Hazel Wright with local AM Alun Ffred Jones and shadow minister for sustainable communities for Plaid Cymru, Llyr Huws Gruffydd AM[/caption]

Caernarfonshire members of the Farmers’ Union of Wales today (Monday January 19) discussed the current milk price crisis with local AM Alun Ffred Jones at FUW county branch vice chairman Tudur Parry’s farm at Pengelli Isaf, Bethel Road, Caernarfon.

Mr Parry farms 280 acres just outside Caernarfon, where he runs a herd of 125 currently milking Holstein Friesian cows, 40 replacement heifers are kept annually and around 80 stores are sold at livestock market. The family further keep a flock of 250 Suffolk X and Mule ewes, with all lambs sold on the hook.

The Welsh dairy industry continues to reel under months of continuing low prices and poor profitability and the union is extremely concerned that global dairy market price recovery may still be some way into the future due to a continuing global supply and demand imbalance.

Speaking after the visit, Mr Parry said: “The current low prices are unsustainable and the industry will see even more falls in producer numbers as even the most efficient producers struggle to survive in the current market.

“The decision by First Milk to postpone milk cheques by two weeks therefore comes at a time when many dairy producers are struggling following months and months of low prices and very poor profitability.  The delay in milk cheques raises more general concerns about how best to deal with the volatility of the global milk market and its impact on the viability of Welsh dairy farms.”

FUW Caernarfonshire county executive officer Gwynedd Watkin added: “Welsh dairy farmers are amongst the best in the world yet milk continues to be devalued by our supermarkets. This is an injustice to those dedicated to the production of such a valuable product and we are thankful that we had the opportunity today to discuss the matter with our local AM.”

FUW meetings to explore changes to CAP

Four meetings will be held in Carmarthenshire by the Farmers’ Union of Wales to explore and discuss the changes to the current common agricultural policy with its membership.

The union’s South Carmarthenshire sub branch will meet on January 21 at Upper Tumble Social Club, the North Carmarthenshire sub branch is to meet at the Forest Arms Brechfa on January 29, the East Carmarthenshire sub branch will meet at the Cottage Inn, Llandeilo on February 11 and the West Carmarthenshire sub branch is meeting on February 19 at Llanboidy Social Club.

“Attendance at these meetings, where members can present their views as the grass roots of the industry, is vitally important. Their contributions will assist the union to represent, fight and safeguard their interest more effectively in the future,” said FUW county executive officer David Waters.

For more details about the meetings contact Mr Waters on 01267 237 974.

FUW Ceredigion to celebrate local produce at breakfast functions

The Ceredigion branch of the Farmers’ Union of Wales is joining in the effort to highlight the importance of having a good breakfast by hosting two farmhouse breakfast functions next week.

“Building on the success of last year’s breakfast function at Trefere Fawr, we have this year organised two breakfasts to raise money for the president’s charities T? Gobaith and T? Hafan and to celebrate the fantastic food we produce not only here in Ceredigion but across Wales,” said FUW Ceredigion county executive officer Caryl Wyn-Jones.

FUW members Sian and Gareth Price will open their doors at 9am on Tuesday, January 27, at Tyn Rhyd, Devils Bridge, Aberystwyth to welcome the rural community for a hearty breakfast in their converted barn, which is also a new business venturing out as a wedding venue, conference and team building location and which also functions as holiday accommodation.

The second breakfast is being hosted by FUW members Arwel and Mary Davies of Pantswllt farm, Talgarreg at Talgarreg Memorial Hall on Wednesday, January 28, also starting at 9am.

“This is not only an opportunity to have a quality Welsh breakfast with items donated by local producers and suppliers such as Birchgrove Eggs, Bara Gwalia of Llanybydder, Owain’s the Butcher of Aberaeron, FUW member and local Llannon butcher Ben Evans and Costcutters Aberaeron, but a chance for farmers to come together to debate the forthcoming change to an area based CAP payment system and to talk to FUW staff about the new Basic Payment scheme,” added Miss Wyn-Jones.

“This is about much more than having a hearty breakfast. Through these functions we create opportunities for farmers across the county to debate current Welsh agricultural policy and it gives us a chance as a union to hear their concerns and ensure they are represented.

“We would like to ask those wishing to attend to contact Emma Davies at the Aberaeron FUW office on 01545 571 222 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.  to confirm their place by Thursday, January 22.  This year we only have 30 spaces per breakfast function and therefore we need to operate on a first come first serve basis,” added Miss Wyn-Jones.

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