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
Special farming role for senior Pembrokeshire councillor
AN OFFICIAL special farming role for Pembrokeshire’s deputy leader is to be established following a call made to full council, the first time the council has had such a role for a senior member.
In a question to council leader Cllr Jon Harvey, heard at the December meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements asked: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.
“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.
“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”
Responding, Cllr Harvey said: “I full share your perspective; it’s true this council has never had a Cabinet member with this role; however I can reconsider, I regard all aspects of rural life as vitally important.”
He told members farming and rural affairs came under the portfolio of the deputy leader [Cllr Paul Miller], adding: “we’re all aware of the changing aspects of rural life at the moment, we do have a rural affairs champion in Cllr Steve Alderman, but I’ve had a conversation with the deputy leader and agreed to review this title to reflect the importance of the role and will happily make an announcement in the next few days.”
Cllr Clements responded: “These words say a lot, it shows this council recognises the importance of the most constant and probably most important business in the county.”
Farming
Call for Pembrokeshire to oppose farming inheritance tax withdrawn
A CALL on Pembrokeshire County Council to oppose government changes to inheritance tax affecting family farms has been withdrawn, but its proposer hopes his motion will return to a future meeting.
At the Budget, Chancellor Rachel Reeves announced farmers would have to pay inheritance tax on agricultural property and land worth more than £1 million at a rate of 20 per cent, with a £3m threshold for couples passing on their farms.
This compares to a 40 per cent rate on other estates.
A Notice of Motion by Councillor Aled Thomas, ‘relating to Protecting British Family Farms and Preserving Rural Communities’ was to be heard at the December 12 meeting of Pembrokeshire County Council’s full council meeting.
Cllr Thomas, who stood as a Conservative candidate for Ceredigion-Preseli in the 2024 general election, asked that: “Pembrokeshire County Council notes its concern to the proposed changes to inheritance tax announced by the Labour Government in the recent Autumn budget, which would scrap Agricultural Property Relief (APR).
“APR has been instrumental in allowing British family farms to remain intact across generations, supporting food security, sustaining rural communities, and aiding environmental stewardship. This tax is estimated to impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership.”
It called on the council to resolve to “oppose the Labour Government’s changes to inheritance tax affecting family farms,” to “advocate for the exemption of family farms to preserve the UK’s food security, rural communities, environmental initiatives,” and to “commit to maintaining its county council farms portfolio, particularly to encourage younger and new generations of farmers into the industry”.
It finished: “This council urges all councillors to stand with Britain’s family farms, to support our rural communities, and to protect the environment by formally rejecting this proposed ‘family farm tax’.”
At the December 12 meeting Presiding Member Cllr Simon Hancock informed members the notice had been withdrawn from the meeting.
Speaking after the announcement, Cllr Thomas, himself a farmer, said: “There was a dispute whether I should have been allowed to submit it as I am a farmer, so I took advice from the monitoring officer that I should withdraw it until I can get a dispensation from the standards committee to speak on the matter.”
He said he hoped to get the motion resubmitted to be heard at the next council meeting.
Farming
Welsh Lamb shines at the Winter Fair Taste Awards
THE ROYAL WELSH WINTER FAIR TASTE AWARDS, showcasing the finest native lamb breeds of Wales in a celebration of sustainability, flavour and culinary excellence, were hosted by the Royal Welsh Agricultural Society (RWAS).
The awards, held in collaboration with Cambrian Training Company, the Culinary Association of Wales and the National Culinary Team Wales, spotlighted the exceptional quality of Welsh Lamb and its unique characteristics.
The competition aimed to promote native Welsh Lamb breeds and emphasise their distinct flavours, encouraging chefs, businesses and consumers to consider Welsh Lamb a premium product.
The RWAS says the competition provides a vital platform to showcase the exceptional flavours of native Welsh Lamb breeds while promoting sustainable farming practices.
These lambs are grass-fed, raised in Wales and come with full traceability from farm to fork. The initiative aims to highlight the story behind the meat and the dedicated efforts of farmers in preserving these breeds.
Societies representing seven native Welsh Lamb breeds participated in the competition, held at the Cambrian Training Company building on the Royal Welsh Showground at Llanelwedd.
Each breed’s lamb was expertly cooked by chefs and presented to a distinguished panel of judges, including Dilwyn Evans, a vet featured on TV series ‘Clarkson’s Farm’, Steven Owen, Castell Howell development chef, Neil Fenn, Professor Rhian Goodfellow, OBE and Arwyn Watkins, OBE, executive chair of Cambrian Training Group.
The breeds showcased included Badger Face Welsh Mountain (Torddu and Torwen), Balwen Welsh Mountain, Black Welsh Mountain, Clun Forest, South Wales Mountain, Llanwenog and Pedigree Welsh Mountain.
Each lamb had been bred, born and reared in Wales, ensuring sustainable and traceable farming practices.
The awards highlighted the diversity among native Welsh Lamb breeds, from the Torddu and Torwen’s hardy nature to the Llanwenog’s docile temperament and premium meat quality.
Farmers and breed societies demonstrated the unique traits of their lambs, such as flavour, sustainability and adaptability to diverse farming environments.
Arthur Davies (South Wales Mountain) and I. T. Davies & Son (Clun Forest) were declared joint winners of the Royal Welsh Winter Fair Taste Awards. Both breeds impressed the judges with their remarkable flavour, tenderness and quality, showcasing the very best of Welsh Lamb.
The event emphasised the importance of promoting the culinary excellence of Welsh Lamb alongside its visual appeal in show rings.
Guest judge, Dilwyn Evans said: “It has been an absolute honour to judge the Royal Welsh Winter Fair Taste Awards and experience first-hand the superior taste of native Welsh Lamb.
“This exceptional meat not only embodies the rich heritage and dedication of Welsh farming but also highlights the importance of preserving these unique breeds and the sustainable practices behind them.”
The RWAS thanked the judges and Cambrian Training Group for their continued support, helping ensure the lambs were cooked to perfection for the competition.
With the awards, Wales has cemented its position as a leader in premium lamb production, bringing the exceptional flavours of its native breeds to the forefront of the culinary world.
Pictured top of page: Taste Test joint winners, Arthur Davies (South Wales Mountain) and I.T . Davies (Clun Forest) with the judges.
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