Farming
Dairy crisis update
THE DEPUTY MINISTER FOR FARMING AND FOOD, Rebecca Evans, visited Dyffryn farm in Powys to meet owner Jonathon Wilkinson and Russell George AM
discuss some of the issues facing the sector.
Discussion covered a range of topics, including the current situation facing the dairy industry in Wales, restrictions on cattle movement and changes to the Basic Payment Scheme.
The Deputy Minister said: “It was really useful for me to speak with Jonathon and his colleagues about the issues affecting them and their businesses. It is important I continue to meet and speak face-to-face with farmers to hear their concerns.”
A recent reduction in milk prices and the prices paid to farmers has put further pressure on dairy farmers and the Deputy Minister was keen to explore how the Welsh Government can continue to help improve resilience in the sector.
“This is of course a difficult time for dairy farmers across the UK. Confidence on dairy farms had been building over the last year, with a better milk price and lower cost of production, leaving a margin on production. But we have seen further turbulence recently and a return to volatility in milk prices. By working together with the dairy sector and dairy industry as a whole, I remain convinced that we can ensure our vision of a modern, professional and profitable industry in Wales can be achieved. I am keen to explore how resilience can be increased in the Welsh dairy supply chain and am expecting to receive a report back to me on the Dairy Review in the coming weeks. We are also considering how we may increase processing capacity in Wales, but also a range of other measures relating to product development and marketing, which will be of benefit to our dairy farmers.”
In October the Deputy Minister announced that Andy Richardson, who sits on the Dairy Task Force, was to lead the review of the dairy sector in Wales. The review is to provide a strategic direction for the dairy sector across the whole supply chain, offering recommendations that Government and the industry can put in place to deliver resilience, economic growth and the creation of additional jobs within the Welsh industry.
The day after visiting Powys, Rebecca Evans met Sir Jim Paice MP for First Milk talks.
First Milk, one of the largest dairy farmer co-operatives in the UK, announced recently that they were to delay payments to producers by two weeks.
First Milk also decided to reverse the 1.1 pence per litre of the planned February milk price reductions for the manufacturing and liquid pools, increase members’ capital investment and increase members’ capital investment target from 5 to 7 pence per litre.
Following their announcement on January 8, the Deputy Minister said she would be seeking urgent talks with First Milk.
Following the meeting at First Milk’s Haverfordwest Creamery, Rebecca Evans said: “I have spoken to farmers who tell me how concerned they are about what the deferred payments mean for the cash flow of their farming businesses. I sought an urgent meeting with First Milk to better understand how the co-operative had found itself in this position, and to satisfy myself that the suite of actions taken by First Milk will be enough to put them on a sound footing. First Milk say that the actions they have taken have helped to raise enough capital to stem their own cash flow problems and put the business on a sound financial footing once again. Sir Jim assured me he had spoken with the banks in light of their decision and had found them to be sympathetic to the farmers’ situation.”
First Milk is a farmer-owned GB milk co-operative with around 1,600 members. It deals with smaller and more geographically remote farms. There are 400 Welsh dairy producers in the co-operative and the vast majority of milk produced in Wales goes to Haverfordwest Creamery to produce cheese and other milk products.
In December, the Deputy Minister announced a review of the dairy sector in Wales, which is being led by Andy Richardson. The review aims to set out a long-term strategic direction for the dairy industry, taking views from all in the Welsh supply chain and is due to report in the coming weeks.
Around 200 farmers attended a meeting in Llandisillio where they were addressed by Sir Jim Paice.
Sir Jim told farmers the business was secure. However, farmers reported that the co-operative’s decision was yet another setback after months of falling wholesale prices.
The Cambridgeshire MP said that he hoped farmers felt reassured following the meeting, adding: “We’ve had to rebuild cash in the business so that our cash flow is fine. First Milk is a perfectly solvent business and we have a long-term future, but we needed to recapitalise the business and that is what we’ve done.”
The decision affects around 400 Welsh farmers.
First Milk operates a number of milk production facilities in England, Scotland and Wales, including the Haverfordwest Creamery plant.
Farming
Farmers’ Union recognises lifelong success of leading business founders
THE Farmers’ Union of Wales (FUW) presented its ‘Lifetime Achievement Award’ to the founders of a leading North Wales business during a special dinner held at the Kinmel Hotel, Abergele, on Friday, November 8, 2024.
Gareth and Falmai Roberts, founders of the popular yoghurt business Llaeth Y Llan, started their venture in 1985 from a converted cow shed at their farmhouse in Llannefydd, Denbighshire – with the first product trials carried out at the back of their airing cupboard!
Over the past three decades, the business has gone from strength to strength. In 1995, they moved to a modern dairy designed and built using a disused barn and other farm buildings. By 2015, with their brand stocked across Wales in four major retailers and dozens of independent shops, the old dairy had reached full capacity. A larger production facility was designed and built on the Roberts’ farm and was officially opened in 2017 by Lesley Griffiths MS, the then Welsh Government Cabinet Secretary for Environment and Rural Affairs.
The business combines traditional values with modern techniques, producing 14 different yoghurt flavours using Welsh milk sourced from the local area. The yoghurt is sold across Wales and England, with the business having already won the Food Producer of the Year award at the inaugural Wales Food and Drink Awards in 2022.
The FUW Lifetime Achievement Award was presented to Gareth and Falmai Roberts by FUW President Ian Rickman. The evening also featured entertainment from operatic baritone John Ieuan Jones.
Ian Rickman, President of the Farmers’ Union of Wales, said: “The Farmers’ Union of Wales was unanimous in recognising Gareth and Falmai’s incredibly successful business, and we were delighted to host this dinner to honour their achievements and present this award to them.
From producing their first yoghurt pot to their current success as one of Wales’ most renowned food producers, Llaeth Y Llan is an outstanding example of Welsh entrepreneurship, with local farming and food production at the heart of their success.
I congratulate them on this well-deserved achievement, and I have no doubt that their business will continue to grow from strength to strength.”
Proceeds from the dinner and the highly successful auction will be donated to the Dai Jones Memorial Appeal Fund, administered by the Royal Welsh Agricultural Society.
Farming
Farmers fight back: Inheritance tax row at Welsh Labour conference
THE Welsh Labour conference in Llandudno, Conwy, on Saturday (Nov 16) became the backdrop for a large and impassioned protest by farmers opposing the Labour government’s controversial inheritance tax changes. Hundreds of farmers descended on the venue with tractors and vehicles, voicing their frustration at what they describe as policies that will devastate rural communities and family farms.
The protest was a coordinated effort by Digon yw Digon (“Enough is Enough”), a group advocating for rural communities. Protesters carried signs reading “Labour War on Countryside” and “No Farmers No Food,” while tractors lined the promenade outside Venue Cymru.
Starmer’s absence deepens anger
Farmers had hoped to confront Prime Minister Keir Starmer directly and present their concerns. However, Starmer avoided the protesters, leaving the venue without meeting them. This decision was sharply contrasted by the actions of former Prime Minister Rishi Sunak, who earlier this year attended the Welsh Conservative Conference and took time to speak with farmers about their challenges.
One farmer remarked, “Starmer didn’t have the guts. He left without facing us.”
The farmers’ message
In lieu of a direct meeting, the farmers delivered a strongly worded letter addressed to Starmer, outlining their grievances:
“Dear Prime Minister,
Croeso i Gymru,
Today you can see the depth of feeling and concerns that you are creating as the PM of this country towards the rural areas and farming community.
The outcome of your Budget highlights the government’s incapacity to look at the position as a whole rather than a tick-box exercise to fulfill your selfless ambition.
The inheritance tax debacle highlights this case. This new tax represents a considerable challenge not only for farmers but also the broader agricultural sector. The £1 million threshold is alarmingly low, and many farmers will face impossible decisions to sell portions of their land to cover these costs. This will affect the smaller family farm the most.”
Why farmers are protesting
The changes announced in the Autumn Budget include:
- A new 20% inheritance tax on farms valued over £1 million.
- Modifications to Agricultural Property Relief (APR) and Business Property Relief (BPR), effective from April 2026.
Farmers fear these changes will force many family-run farms to sell land, leading to reduced food production and driving up food prices.
Becky Wall, a farmer at the protest, made an emotional appeal:
“Please support our farmers; they work hard over long hours to feed us. Without them, we have no food. These changes will also impact small businesses connected to farming, posing a serious threat to our economy and our bellies.”
Rural Wales under pressure
The letter also highlighted the cumulative challenges faced by Welsh farmers, including the draconian impact of Nitrate Vulnerable Zone (NVZ) regulations, increasing incidences of bovine tuberculosis (TB), and uncertainty surrounding the Sustainable Farming Scheme (SFS).
“This cumulative approach has created despair in the countryside,” the letter continued. “As food supplies decrease, it will become more expensive, and the poorest in society will suffer the most.”
Gareth Wyn Jones, a farmer and broadcaster, expressed the emotional toll on rural communities:
“They’re destroying an industry already on its knees mentally, emotionally, and physically. We need government support, not hindrance, to feed the nation. Enough is enough.”
A strike as a last resort
As frustration boils over, some farmers have announced plans to go on strike starting Sunday. While economically challenging, the strike reflects the growing anger in the countryside.
The protest in Llandudno is part of a larger movement, with a major demonstration planned for Westminster next Tuesday. The event has already drawn so much support that its location was moved from Trafalgar Square to accommodate the expected turnout.
Starmer defends budget
Inside the conference, Starmer defended the Budget, describing it as a tough but necessary measure to stabilise the economy:
“Make no mistake, I will defend our decisions in the Budget all day long. Tough decisions were necessary to protect the payslips of working people, fix the foundations of our economy, and invest in the future of Wales and Britain.”
Starmer also hailed Labour’s collaboration between Westminster and the Welsh government as a “gamechanger,” promising that communities in Wales would benefit from Labour-led governments pulling in the same direction.
Investments and promises
Despite the protests, the conference included announcements of major investments:
- A £160 million investment zone for Flintshire and Wrexham, described by Starmer as a turning point for the region’s economy.
- An additional £22 million to tackle NHS waiting lists in Wales, adding to the £28 million pledged earlier this year.
- A record £21 billion Budget allocation for Wales in 2025.
First Minister Eluned Morgan touted the “power in partnership” between the two Labour governments and emphasised their commitment to delivering for Welsh communities.
Farmers and rural advocates insist that their voices will not be ignored. The inheritance tax changes have become a flashpoint for broader frustrations with government policies affecting rural areas.
As the protest letter concluded: “Prime Minister, we ask that you revisit the whole approach to farming and rural communities as a matter of urgency. This is a last resort, but growing anger in the countryside has brought us here. The one thing Labour has achieved is uniting farmers, businesses, and rural communities against these policies.”
With protests expected to intensify in the coming days, the farming community’s fight for their livelihoods and the future of rural Wales continues.
Farming
Welsh Government could overturn Ceredigion cattle breeder’s house plans
A CEREDIGION councillor-backed scheme by one of the top breeders of Limousin cattle in the UK to build a home near Lampeter could be overturned following a call for it to be decided by Welsh Government, planners heard.
At the October meeting of Ceredigion County Council’s development management committee, the application, by Mr and Mrs Dylan Davies for a four-bedroom rural enterprise workers’ dwelling at Blaenffynnon, Llanwnnen, Lampeter, where they run a calving and cattle rearing business, was backed despite an officer recommendation for refusal.
One of the issues in the report for members was the financial test of whether the scheme was affordable, based on an estimate the building would cost some £292,000 to construct; at a 25-year mortgage amounting to £20,400 a year.
The size of the proposed building – which the applicants say include a need to entertain and occasionally accommodate clients – was also given as a reason for failing the TAN6 policy test, being larger than affordable housing guidance, at 202 square metres rather than a maximum of 136.
Members have previously heard the applicant breeds high-value show cattle for embryo transplanting at the well-established business, with one bull alone selling for £32,000 last year.
It had previously been recommended for refusal at the September meeting, but was deferred for a ‘cooling-off’ period to seek further details along with potential changes to the size of the scheme.
At the October meeting, members backed approval despite officers saying the size proposed could actually include a two-person bungalow in addition to the normal maximal ‘affordable’ size.
At the start of the November meeting, members heard a request for the scheme to be ‘called-in’ for Welsh Government final decision had been made, meaning Ceredigion planners’ approval could potentially be overturned if the ‘call-in’ is agreed.
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