This call comes as figures from AHDB show that over the last five years, 17% of dairy farmers in Wales have chosen to exit the industry. The combined cost of complying with environmental regulation, continued market volatility coupled with rising costs, pressures of bovine TB and uncertainty about the Sustainable Farming Scheme (SFS) are all weighing heavily on the sector, with the impact being acutely felt by producers.
Over the last five years, 17% of dairy farmers in Wales have chosen to exit the industry.
NFU Cymru Dairy Board Chairman Jonathan Wilkinson said: “The Welsh dairy sector provides climate friendly quality and nutritious milk 365 days of the year to consumers in Wales and further afield. The sector is a hive of economic activity and is worth over £850 million to the Welsh economy, accounting for almost half (47%) of the gross output of Welsh agricultural production. Our sector also generates significant employment and more than 5,300 people are directly employed on Welsh dairy farms. The sector also supports significant employment beyond the farmgate, both in milk processing and in the allied industries, all of which helps to support the prosperity of our rural communities in Wales.
Lack of confidence
“However, despite the market showing some signs of improvement, dairy farmers across Wales are struggling to find the confidence to make the decisions necessary to drive their businesses forward. Farmers are being asked to make significant capital investment in their farm to comply with environmental legislation and at the same time, are continuing to battle the devastating impacts of bovine TB which continues to threaten farmers livelihoods. This is against the backdrop of uncertainty as dairy farmers in Wales continue to question if the proposed SFS scheme will be an attractive and viable option for the sector. In addition, high interest rates and rising input costs lie heavily on farm balance sheets, restricting cash flow and limiting the ability of farmers to make the necessary investment.
“Against this backdrop of uncertainty, it is not surprising that over 280 dairy farms in Wales have turned off their milking parlours over the last five years. We know the demand for dairy products around the world continues to grow and the sector offers a wealth of opportunities, but to ensure the next generation of Welsh dairy farmers have a prosperous future, the sector must have the confidence to invest in the here and now. This is why we are encouraging consumers to back our Welsh dairy farmers by looking for the Welsh flag when they are shopping or enjoying dairy products out of the home. We also urge our government to work with NFU Cymru to address the challenges we face and to listen to the Welsh dairy industry to safeguard the continued production of quality, nutritious and climate friendly milk in Wales.”