Welsh dairy production is worth almost £850 million to the Welsh economy and accounts for almost half (47%) of the total output of Welsh agricultural production. The Welsh dairy sector also generates significant employment, estimated at more than 5,300 people directly employed on Welsh dairy farms. In addition, with around 50% of milk produced in Wales being processed in Wales, the sector supports a further 1,250 jobs in the wider dairy manufacturing sector.
At their recent board meeting, dairy farmers from across Wales considered Welsh Government’s ‘Sustainable Farming Scheme – Keeping Farmers Farming’ consultation. This sets out how the Basic Payment Scheme is to be fully phased out by 2029 and replaced by the Sustainable Farming Scheme from 2025, with farmers who wish to participate receiving a Universal Baseline Payment in return for delivering 17 Universal Actions and two scheme rules. The rules include the requirement to have at least 10% tree cover and 10% of the farm managed as habitat. A time limited stability payment which reduces to zero by 2030 is also proposed.
"If the modelling undertaken became a reality on Welsh farms, then it could see Wales producing over 368m litres less milk. To put this into context, that is equivalent to taking over 648 million pints of milk off the shelves around the world."
NFU Cymru Dairy Board Chair, Jonathan Wilkinson
Demand for dairy
NFU Cymru Dairy Board Chairman Jonathan Wilkinson said: “The growing global population is driving demand for dairy products upwards and our ability to produce climate friendly and nutritious milk in Wales means we are perfectly placed to supply consumers around the world. However, according to Welsh Government commissioned research on the Potential economic effects of the Sustainable Farming Scheme Phase 4 Universal Actions Modelling Results undertaken by a consortium led by ADAS the proposals for the Sustainable Farming Scheme could restrict Welsh dairy farmers from accessing this opportunity. If the modelling undertaken became a reality on Welsh farms, then it could see Wales producing over 368m litres less milk. To put this into context, that is equivalent to taking over 648 million pints of milk off the shelves around the world.
Low carbon footprint
“Our milk produced in Wales has one of the lowest carbon footprints in the world. In fact, the carbon footprint of UK milk production is only 40% of the global average. The modelling published by Welsh Government suggests that these proposals could see more than 45,000 less dairy cows in Wales. Not only will this put thousands of livelihoods across the whole supply chain at risk but, by destocking our farms, we become less productive to the detriment of not only our net zero ambitions but also the consumers we are depriving of our healthy, nutritious milk.
Concluding Mr Wilkinson said: “The Welsh Government Rural Affairs Minister has committed that she wants future agricultural policy in Wales to work for all farmers and this must include dairy farmers. I urge the Minister to listen to the views expressed to her by the Welsh dairy industry and to change her proposals to safeguard the continued production of quality, nutritious and climate friendly milk in Wales for generations to come.”
