Significant Decline in Dairy Prices Sparks Concern Among Welsh Farmers
Recent reports have highlighted a significant fall in dairy prices, causing widespread concern among farming communities in Wales. The Farmers' Union of Wales (FUW) reports that milk prices have drastically dropped over the autumn season, with processors indicating further reductions into the new year. This trend has left many farmers facing potential financial losses, as production costs remain higher than current milk prices.
The average milk prices are expected to range between 30 to 35 pence per litre, while production costs are estimated at 39 to 44 pence per litre, according to a report from Kite Consulting. This disparity implies substantial financial challenges for dairy farms, with potential losses mounting to thousands of pounds each month.
Gerwyn Williams, Chair of the FUW Animal Health & Dairy Committee, expressed the urgency of the situation, stating that the severe price drop is unprecedented. He emphasized the need for immediate intervention to ensure the viability of family farms, which are at serious risk due to the current economic pressures.
The FUW has urged the Welsh government to collaborate with the industry to provide stability and develop a plan for long-term resilience. Dai Miles, FUW Deputy President, noted the broader implications for rural communities, emphasizing that the dairy sector underpins thousands of jobs and is integral to the economic and social fabric of these areas.
In response, NFU Cymru has written to milk processors, calling for fair dealing and transparency in the supply chain. Jonathan Wilkinson, NFU Cymru Dairy Board Chair, highlighted the importance of maintaining open communication with suppliers to navigate the challenging period.
Paul Tompkins, NFU Dairy Board Chair, noted that this situation is testing the new contract regulations and the role of the Adjudicator in ensuring compliance. He encouraged farmers to engage with buyers and utilize the new regulations to understand how milk prices are determined.
