Farming

Dairy Crisis Update

Published

11 years ago

February 9, 2015

IN THE FACE of the current dairy crisis, the Farmers’ Union of Wales is once again calling on major UK supermarkets to commit to the procurement of Welsh dairy produce, and to ensure that the prices paid for dairy products are such that confidence in the long term future of the sector is revived.

Speaking after a recent FUW milk and dairy produce committee meeting, chairman Dai Davies said: “The FUW has written to the leading supermarkets in the UK to highlight that last year saw many months of consecutive downward milk pricing, which has caused major problems for the sector.

“Whilst some forecasts predict a decline in global milk supplies in the latter half of 2015, the Russian trade embargo, coupled with reduced demand in China and a weak economic environment, will likely delay price rises beyond any potential downturn in production.”

According to figures supplied by Defra, the average November UK farm-gate milk price was more than 16 percent lower than the same month in 2013 and is the lowest farm-gate price since September 2012.

“The falling dairy prices experienced by producers in Wales raises significant concerns within the dairy industry, and a lengthy delay in milk price recovery now seems certain due to a continuing supply and demand imbalance within the global marketplace.

“Factors such as low milk prices, poor profitability and long-term uncertainty in the sector have severely undermined confidence in the long term sustainability of this industry; the very nature of which requires a long term commitment and investment from producers,” added Mr Davies.

Whilst the Union recognises that dairy farmers supplying supermarkets on a dedicated supply contract have received more favourable milk prices, such farmers represent only a small fraction of the Welsh dairy sector – around 4 percent of production – and are therefore unrepresentative of the industry as a whole.

“Failure to secure commitment by providing sustainable prices for dairy should be a major concern for all those within the supply chain. Between January and September 2014, UK dairy imports of cheddar cheese, speciality cheese and butter were around 77,000, 271,000 and 42,000 tonnes respectively and the union is therefore urging the supermarkets to ensure that a concerted effort is made to source dairy products from within our own shores,” added Mr Davies.

However, Sir Jim Paice MP, head of dairy co-operative First Milk said that supermarkets were not wholly to blame for the crisis.

“It is tempting to blame the supermarkets for the current downturn in milk price we’re experiencing but I have to say, as Chairman of First Milk, the crisis that we’re seeing today in the milk industry is not really the supermarkets’ fault,” said Sir Jim Paice, when speaking to NFU Cymru members in Pembrokeshire recently.

Sir Jim continued, “I believe the fundamental problem with the dairy industry at the moment is that there is too much milk on the market. We have seen an approximate increase of 10% of milk produced in the UK alone this year. That has been exacerbated by two things, China dramatically reduced its purchase of milk powder and then Russia introduced its trade ban, which included dairy products. With a third of EU cheese exports going to Russia – that was the final straw and that’s why our milk prices are where they are.

“It has resulted in a very serious situation throughout the country at the moment, particularly here in south west Wales where milk is obviously a hugely important industry.” Sir Jim Paice informed Pembrokeshire NFU Cymru dairy farmer members who attended the meeting.

He used the meeting to assure those farmers that supply First Milk that the co-operative was here to stay and everybody is getting paid for the milk they have produced. He insisted that First Milk was in a very very strong position now, the strongest it has been for many years, and it should be strong enough to withstand the volatile next few months ahead.

John Davies, NFU Cymru Deputy President and Euryn Jones, Agriculture Manager for HSBC Bank, the conference’s sponsor, both agreed with Sir Jim that we were witnessing extremely volatile times at the moment in dairy, as well as other sectors of farming, and both agreed NFU Cymru and the bank were there to help assist members and customers any way they can to get them through the volatility. John Davies said, “What we all want is a fair price from the market place for what we produce.”

Sir Jim is currently the Conservative’s Member of Parliament for Cambridgeshire but he is due to stand down at the forthcoming General Election this spring. A Suffolk farmer, farm manager and training manager, Jim Paice was in the position of Minister of State at the Department for Environment, Food and Rural Affairs in 2010 when negotiations first started on the current CAP reforms.

Reflecting on his time as Minister he said that we’ve ended up with a Common Agricultural Policy (CAP) which is pretty similar to what was originally proposed. He explained, “I’m not saying that means the first proposals were right, what I’m saying is that it was very difficult for 28 very different countries to agree. Discussions were impossible when each Minister from each Member State was given just three minutes to give their views on the proposals. It ended up with each Minister giving set speeches – not a discussion!”

Simon Richards, NFU Cymru’s newly elected Chairman for Pembrokeshire, and a dairy farmer from Haverfordwest, thanked all the speakers at the County Conference, particularly Sir Jim Paice MP, for his insight into the current situation at First Milk and his time as Defra Minister. Mr Richards also thanked HSBC Bank for its generous sponsorship of the event.

Farming

Royal Welsh Show opens with Brecknock centre stage

Published

20 hours ago

July 21, 2026

Tom Sinclair

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

Published

3 days ago

July 19, 2026

Tom Sinclair

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

Published

6 days ago

July 16, 2026

Tom Sinclair

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.”