Farming
Dairy crisis update

Rebecca Evans
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
Royal Welsh Show opens with Brecknock centre stage
Thousands gather at Llanelwedd as Welsh farming, rural heritage and the future of food take the spotlight
THE ROYAL WELSH SHOW has opened at Llanelwedd, with thousands of visitors arriving for four days celebrating Welsh agriculture, food, countryside traditions and rural life.
Major Andrew Butcher MBE, Senior Training Safety Officer at Sennybridge Defence Training Camp, officially declared the 2026 show open during Monday’s traditional ceremony.
He was joined by Royal Welsh Agricultural Society chair of council Nicola Davies, show president Gethin Havard and representatives from farming, government and rural organisations.

First Minister Rhun ap Iorwerth was among the senior political figures attending the opening day, underlining the show’s importance not only as a major visitor attraction, but as a focal point for debate about the future of agriculture and food production in Wales.
This year, Brecknock is taking centre stage as the society’s Feature County.
It is the fifth time the county has held the honour, following previous feature years in 1964, 1980, 1997 and 2012.
The opening ceremony recognised the efforts of Mr Havard and his family, county advisory committee chair Rob Powell, honorary secretary Shelley Hughes, ambassador Teleri Haf Thomas and the many volunteers involved in organising events and raising funds throughout the year.

Last month’s Grassland Event at Cwmbrynich, hosted by the Havard family, was among the highlights of Brecknock’s feature year.
A special tribute was also paid to the families of Epynt who were displaced from their homes in 1940 when the land was taken over for use as a military training area.
Addressing the crowd, Major Butcher said agriculture remained central to the Welsh economy, environment, food security and national identity.

He said: “In a rapidly changing world, the importance of agriculture has never been clearer. It is central to our economy, to our environment and to our food security. But beyond all that, it is central to our identity.
“The Royal Welsh Show stands as a powerful reminder of that truth. It showcases excellence, encourages innovation and strengthens the bonds between us.
“It brings town and country together, offering a space where understanding can grow and where traditions can be celebrated and shared.”
The show was officially opened to a fanfare performed by the Regimental Band of The Royal Welsh.
Farming policy takes the spotlight
Away from the competitions and entertainment, the political future of Welsh farming has already emerged as one of the central themes of this year’s show.
The Welsh Government used the event to confirm that £340 million a year will be provided for three years to March 2030 to support the Sustainable Farming Scheme.
The package includes £238 million annually for the scheme’s Universal Layer and £102 million for its Optional and Collaborative Layers.
Ministers say the multi-year agreement will end the uncertainty caused by annual funding decisions and allow farmers to plan investments with greater confidence.
A new national Farm to Fork plan is also being unveiled during the show, setting out proposals for the future of food production and the wider food industry in Wales.
New sheep village launched
Among the major additions to the showground this year is Cynefin, a new Welsh Sheep Village created by the Royal Welsh Agricultural Society and the National Sheep Association.
The area was opened by Margaret Dalton OBE and Alun Evans CBE, both longstanding champions of the Welsh and UK sheep industry.
The dedicated village celebrates the people, breeds, products and traditions that have shaped sheep farming in Wales, while showcasing innovation and best practice across the sector.
Visitors can take part in educational displays, live demonstrations, discussions and interactive activities designed to improve understanding of the role sheep farming plays in the Welsh landscape, rural economy and national heritage.
Brecknock’s native breeds are also being showcased, including the Beulah Speckled Face, Brecknock Hill Cheviot, Epynt Hardy Speckled Face and Talybont Welsh Mountain.
The name Cynefin reflects the close relationship between the land, livestock, farming families and the communities shaped by the sheep industry.
The popular Horticulture Village has also returned with a packed programme of expert talks, demonstrations and practical activities.
BBC Gardeners’ World presenter Adam Frost joined the opening day as special guest judge for the Micro Show Garden Competition before taking part in a question-and-answer session with visitors.
Main Ring entertainment
The Main Ring programme began with the Royal Welsh debut of the Shetland Pony Grand National, alongside the return of the Paul Hannam Quad Bike Stunt Show, Hawkeye Falconry and displays by the RAF Falcons.
A special performance was also given by Britain’s Got Talent winners the Hawkstone Farmers’ Choir, whose members waved to the crowds from the Main Ring.
The choir has used its growing public profile to raise awareness of loneliness and mental health pressures within farming communities.
Wales YFC also marked its 90th anniversary with a colourful display celebrating the organisation’s contribution to rural life and generations of young farmers.
The Royal Welsh Show continues until Thursday, July 23, with livestock and equine competitions, forestry, horticulture, countryside sports, shopping, Welsh food and drink and a full programme of Main Ring entertainment.
Picture caption: Royal Welsh Agricultural Society president Gethin Havard with Major Andrew Butcher MBE following the opening ceremony.
Picture caption: Members of the Hawkstone Farmers’ Choir wave to the crowds from the Main Ring.
Pictures: RWAS
Farming
Welsh farmers promised £1bn funding package under three-year deal
Welsh Government guarantees £340m annually for Sustainable Farming Scheme as minister pledges greater certainty and less bureaucracy
WELSH farmers will receive more than £1 billion in agricultural funding over the remainder of the Senedd term, under a new multi-year commitment announced by the Welsh Government.
Cabinet Minister for Rural Resilience and Sustainability, Llyr Gruffydd, unveiled the package at the Royal Welsh Show, in his first major announcement since taking responsibility for the rural affairs portfolio.
The Government has guaranteed £340 million a year for three years, taking funding for the Sustainable Farming Scheme through to March 2030.
Of that annual total, £238 million will support the scheme’s Universal Layer, while £102 million will fund Optional and Collaborative actions.
The Welsh Government said the agreement would end the uncertainty caused by annual funding settlements and allow farming businesses to make longer-term investment and planning decisions.
The commitment was promised during the first 100 days of the new Plaid Cymru Government.
Mr Gruffydd said: “Giving farmers only 12 months’ line of sight to funding is not sufficient.
“We know how hard it is to plan and make business decisions without knowing what funding is coming.
“Farmers told us loud and clear they need certainty and stability, and that is exactly what we are delivering.”
Red tape changes announced
The minister also announced initial measures intended to reduce bureaucracy for family farms, following early feedback from an independent review led by former NFU Cymru president John Davies.
The requirements of the Animal Health Improvement Cycle, known as AHIC, will be simplified under the Universal Layer of the Sustainable Farming Scheme.
The Welsh Government will work with farm assurance schemes to align their requirements from 2027.
Farmers participating in an aligned assurance scheme would then complete one form following a single veterinary visit, rather than carrying out separate processes for farm assurance and Sustainable Farming Scheme compliance.
Because 2026 is being treated as a transition year, membership of farm assurance schemes that have committed to aligning their requirements by 2027 will be accepted as satisfying the AHIC requirement this year.
Mr Gruffydd said the relationship between farmers and their vets would remain central to improving animal health and farm performance.
New grants opening
Applications for organic conversion support are expected to open at the end of July.
A new Production and Efficiency capital grant category will also provide support towards livestock-handling facilities, precision soil and crop-management equipment, and other investments designed to reduce waste and improve productivity.
Further Optional Actions will be introduced over the coming months.
The Small Woodland Creation Grant and Woodland Creation Grant application windows will open on Monday, July 20.
A further window for the Integrated Natural Resources Scheme, which forms part of the Collaborative Layer, is also expected to open later this year.
Mr Gruffydd said: “The family farm sits at the heart of rural Wales, its economy and its communities.
“I am committed to working to ensure farming in Wales thrives for generations to come.
“My message to farmers from day one has been: you have a minister on your side.
“Someone who is in tune with the agricultural sector, who knows that the family farm is the foundation of our rural economy and our rural communities, and who will work every day to make sure farming in Wales thrives for generations to come.”
Farming
Paul Davies calls for stronger action to eradicate bovine TB in Wales
Ceredigion Penfro MS says disease is placing severe emotional and financial pressure on farming families
Paul Davies MS has urged the Welsh Government to use every available measure to tackle bovine tuberculosis and work towards eradicating the disease in Wales.
The Ceredigion Penfro Senedd Member raised the issue during a Senedd debate, warning that bovine TB continues to have a devastating impact on farmers, their families and rural communities.
Mr Davies called for a science-led and comprehensive strategy that addresses every potential source and route of infection.

He said farmers across west Wales needed clear leadership from the new Welsh Government and greater confidence that ministers were prepared to take effective action.
Mr Davies said: “Bovine TB continues to have a huge impact on farmers, their families and rural communities across Wales.
“It places enormous emotional and financial pressure on farming businesses and remains one of the most significant challenges facing our agricultural industry.
“Farmers and the wider rural community are looking to the new Welsh Government to provide leadership by introducing a holistic approach that addresses all routes of transmission.
“The Welsh Government must do everything it can to eradicate this appalling disease.
“I will continue to raise this issue on behalf of farmers in west Wales and press the Welsh Government to use every lever available to tackle bovine TB.”
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