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
Top biosecurity tips from a Welsh farmer on protecting cattle from TB

A DAIRY farmer managing a chronic bovine TB breakdown has eliminated a major disease threat to his herd by no longer buying in cattle.
Michael Williams is one of 15 farmers involved in the Pembrokeshire TB pilot, a Welsh Government initiative which aims to develop additional measures for bovine TB control, over and above the statutory actions currently being used.
Sharing his progress with other farmers at a recent Farming Connect event, Mr Williams said there is much that every farmer can do to protect their herds from TB.
He has introduced multiple biosecurity measures, including running a closed herd.
He milks 150 cows on a robot milking system at Fagwrfran East, Puncheston, and had sourced cattle from livestock markets but this came with the risk of importing TB.
“We had already stopped buying in cattle before becoming part of this project but we have since become a truly closed herd, we don’t even buy a stock bull,’’ Mr Williams explained.
Cameras were installed to establish if badgers were coming into contact with cattle in the yard and housing and with food and water sources.
None were detected but there were obvious physical signs of activity in fields and on cow tracks.
One and a half miles of badger-proof fencing has since been erected along a hedge with a high number of setts and latrines, to separate these from the stock.
Mr Williams has introduced other measures too:
Creating a remote fallen stock area
The fallen stock collection point had been situated on a part of the farm which compelled a vehicle to cross the yard to collect carcasses.
This facility is now located in a contained area of a building that sits closest to the road and can be completely sealed off from wildlife.
Erecting electric fencing along the maize clamp
Although the farm has no feed bins vulnerable to wildlife, its open maize clamp is a potential risk at feeding out.
Mr Williams erected a simple deterrent, filling two redundant 20-litre dairy chemical drums with sand, placing these at each end of the clamp face and running polywire from one to the other, hooked up to a solar-powered energiser.
“This cost about £20, took ten minutes of my time and prevents badgers from interfering with the feed,’’ he said.
Restricting visitor numbers
Unplanned visits by sales representatives and others are now discouraged.
Visits are by appointment only and a sign has been placed at the farm entrance advising of this policy.
Vehicles coming onto the farm must be clean.
Draining unused water troughs
In-field drinking water troughs that are not used in the winter when the herd and youngstock are housed are drained and remain empty until turnout.
Water troughs in use are cleaned weekly.
Reducing reliance on farm contractors
Investment has been made in slurry application equipment to remove the need for hiring contractors for this job.
Keeping cattle accommodation walkways clean
The frequency that feed passages in the cattle housing are cleaned has increased to minimise the period that slurry pools in these locations.
Adopting the highest level of hygiene at calving
Matting similar to cubicle bed mattresses has been laid in a dedicated calving pen to allow the floor to be thoroughly pressure washed and disinfected between calvings.
Providing footwear disinfection points
Containers of disinfectant solution are positioned around the yard to allow footwear to be disinfected in between contact with different classes of stock
Increasing intervals between slurry application and silage harvesting
Although Mr Williams operates a multi-cut silage system, he has increased cutting intervals from four weeks to five and applies slurry to the aftermath at the very earliest opportunity, the day after the grass has been collected from the field.
Other measures
In addition to rolling out biosecurity measures, Mr Williams has been culling animals which have been identified as at high risk of contracting or spreading TB, flagged up on a ‘risk rating’ list through an app developed for the Pembrokeshire TB pilot.
Any cow in the two highest risk categories – in this case red or amber – is sold as barren.
“Being more proactive with culling, choosing when an animal leaves the farm rather than being in a forced situation as a result of a TB test, is a better option in many ways,’’ said Mr Williams.
If an animal falls into a ‘yellow’ band, the lowest of the three risk categories, but is nonetheless a risk, she is bred to a terminal sire to ensure that no female replacements enter the herd.
In 2024, 35 of Mr Williams’ cows exited the herd based on risk rating results.
“There is short term pain in getting on top of the residual disease but I am confident that we will reap the rewards a few years down the line,’’ he maintains.
“If we can get down to two or three per cent risk rating, we will be in the realms of being on top of the disease rather than the disease being on top of the herd.’’
He believes this system is working.
“In December 2024 the risk rating was 7% compared to 11% in January 2024 so this is a start, we think culling is working.’’
Mr Williams also emphasised the importance of making time to discuss biosecurity and disease risks with the farm vet.
“Don’t do this while the vet is TB testing or on the farm for another reason, set aside a dedicated time to have a proper discussion,’’ he advised.
He credits his vet, Rhiannon Lewis, of Gwaun Vets, with supporting him through this process. “We have worked together on this,’’ he said.
PANEL
The Farming Connect event was hosted by Rhys Lougher at Ty Tanglwyst, a dairy farm near Pyle.
Mr Lougher’s 120-cow herd of pedigree Holsteins has been free of TB for many years.
He too has high levels of biosecurity and benefits from his farm being largely remote from cattle on other holdings and protected by hard boundaries including roads and limestone quarries.
Only sexed semen is used for breeding and no cattle have been bought in for 40 years.
Mr Lougher has his own slurry tanker and muck spreader to avoid use of contractors.
“A big part of our business is selling high health status, freshly calved, pedigree Holstein heifers to other dairy farms, the wish to continue to do this is our main driver for wanting to keep TB out of our farm,’’ he said.
Farming
Ceredigion farmer’s plea to build bungalow on his own land

A CEREDIGION farmer’s call to convert a derelict building last occupied in the 1930s as a downsizing home on land he has farmed all his life has been put on hold while planners visit the site.
At the February meeting of Ceredigion County Council’s development management committee, members were recommended to refuse an application by Mr and Mrs I and A Evans, of Fronlwyd, Llangrannog to erect a dwelling, agricultural shed and associated works on the site of the nearby abandoned dwelling at Fronlwyd/Pen-yr-Allt, just over a mile from Llangrannog, which was last occupied in 1936.
It was recommended for refusal on grounds including it was “unjustified new housing in open countryside”.
Giving an impassioned plea to be allowed to build the bungalow, Mr Evans, who warned he was “not a big fan of public speaking,” said: “I have farmed the land all my life, I live in a five-bed house, just me and the wife, we’re getting older.
“We want to build a bungalow just so we can future-proof as we get older; I don’t want to leave the land I’ve farmed all my life, I like being out in the fresh air and listening to the birds and the animals.”

He said there was more of the ruined building present when he was a child, the building declining after “years of not being looked after”.
He told members he wanted the site to go back to “what I remember as a kid”, adding: “In the olden days they knew how to build houses, it’s in a little dip and only visible from one direction, it’s ideally situated.
“I would look after the land and me and my wife in our old age; I just want to satay there, that’s where I’ve lived all my life, and I want to stay there.”
A site inspection panel visit before any decision was made was proposed by Cllr Gareth Lloyd, with Cllr Maldwyn Lewis saying: “In my mind heritage is important for Ceredigion, the backbone of the fabric of the community.”
Members unanimously backed a site inspection panel viewing of the application, the application returning to a future meeting.
Farming
Farming funding fears as Welsh government warns of major cuts

A CHANGE in the UK government’s approach to funding for Welsh agriculture has sparked serious concerns, with First Minister Eluned Morgan warning that the shift could see Wales lose nearly £150m a year in farm support.

The Farmers’ Union of Wales (FUW) has cautioned that the funding formula change could amount to a cut of more than 40%, raising alarm across the industry. The UK government has decided to stop ring-fencing farm support, meaning future allocations will be absorbed into the general funding provided to the Welsh government.
Morgan, addressing MPs at Westminster’s Welsh Affairs Committee, said the move was “a huge concern” and argued that it fails to reflect the higher proportion of farmers in Wales compared to other parts of the UK.
Funding shake-up
The change, first announced in last October’s UK Budget, will see farm funding calculated under the Barnett formula, which determines the Welsh government’s overall budget. Under Barnett, Wales receives around 5% of spending increases in England for devolved matters like health and education, but agricultural leaders argue that this method does not take into account the unique demands of Welsh farming.
Morgan, leader of Welsh Labour, told the committee: “If you just do a Barnett consequential, you’re talking about a 5% [increase], whereas, actually, when it comes to agriculture we should be significantly higher than that.
“It is a huge concern that this has been changed.”
Political pressure mounts
Plaid Cymru’s Westminster agriculture spokesperson Ann Davies said the UK government had failed to provide clarity on how Wales’ higher proportion of farmers would be considered under the new system.
“The Labour first minister now expressing concerns only reinforces the urgency of this issue,” she said. “The UK government must guarantee that Welsh agriculture will not lose out in the future.”
A UK government spokesperson defended the changes, saying: “The Budget provided the Welsh government with a record £21bn settlement, and it receives over 20% more funding per person than equivalent UK government spending.
“It is for the Welsh government to allocate this across its devolved responsibilities, which include agriculture, to deliver on the priorities of people in Wales and support the Welsh rural economy.”
Wider economic worries
During the committee session, Morgan also raised concerns over potential new tariffs on steel imposed by former US President Donald Trump. The proposed 25% import tariff could threaten Welsh steel exports, with the first minister revealing she had already discussed the issue with Chancellor Rachel Reeves.
“I’m sure we are all very concerned to see what President Trump is suggesting in terms of steel tariffs, and we don’t know where that is going to end,” Morgan said.
The first minister is later due to attend a dinner at Windsor Castle hosted by the King, alongside UK Prime Minister Sir Keir Starmer and the first ministers of Scotland and Northern Ireland.
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