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Farming

Market volatility hitting family farms

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REBECCA EVANS AM – Deputy Minister for Farms and Food, visited the Haverfordwest Creamery to better understand the challenges facing the dairy sector and the plans that farmer-owned First Milk have in place for the future.

Haverfordwest Creamery processes the milk from nearly 300 local dairy farmers, who are all co-owners of the factory and located within a radius of 50 miles.

After completing a factory tour, which included speaking with local employees and a local farmer representative, the Deputy Minister said:

“In the last 12 months we have witnessed volatility and low prices in dairy markets around the world, which has had a direct impact on family farms across Wales. We are working closely with the industry, through our Dairy Task Force, to increase the demand and add value for Welsh milk and milk products.

“I believe that well-invested farmer-owned facilities, such as this creamery in Haverfordwest, are vital to the long-term vision of an efficient and sustainable dairy sector in Wales. One which delivers benefits for the wider rural economy.”

First Milk’s site director at the creamery, Paul Rowe commented: “Haverfordwest Creamery creates approximately £70 million of economic activity per year in West Wales. It processes over 260 million litres of local milk and turns it into 28,000 tonnes of award-winning cheeses, with over 100 local people employed in our cheese making and distribution operations.

“Haverfordwest Creamery is one of the most efficient in the UK and a large proportion of the investments we have made, over the last few years, have only been possible with the support of the Welsh government.

“Dairy markets are very tough right now and dealing with this is our immediate priority. However over the longer-term we firmly believe that the Haverfordwest Creamery is well placed to take advantage of the growing global demand for dairy products. We will continue to work closely with the Welsh government in developing these opportunities for the benefit of our local farming members and owners.”

Addressing the annual DairyCo conference at the University of Aberystwyth the following day (Friday, March 6), Rebecca Evans, announced the completion of the Welsh Dairy Review.

In October, the Deputy Minister announced she was commissioning an independent review of the Welsh dairy sector. She asked Andy Richardson, a member of the Dairy Task Force for Wales, to lead the review, which was commissioned in response to difficulties faced by dairy farmers last autumn, as well as an opportunity to review the voluntary code which had been in operation for two years.

She recently received the final report from Mr Richardson, who categorised his recommendations under five key headings: Leadership, Market Focus, Efficiency, Knowledge and Skills and the Environment.

The Deputy Minister said: “One of the things that has particularly concerned me about the recent cut in the price of milk is the impact on confidence and the possible knock-on effect this could have on investment within the sector.

“Andy Richardson’s review suggests that the mood, both amongst farmers and processors, may be more positive than perhaps is being portrayed and that is good news – without continued investment the future will look very bleak.

“As the price paid for milk continues to fall, many farmers and processors in Wales continue to operate under extremely challenging conditions on a daily basis, as the industry faces a very difficult period, one fundamentally driven by an over-supply.

“I am however confident there is a secure and profitable future for dairy in Wales. As I have said many times before, we have the land, the animals, the labour and the infrastructure. Evident from Andy’s review is that we also have the commitment, the passion and the willingness to change and to adapt that will see us through our current difficulties.

“It is so important to me that we continue to support the sector by taking on board the views of those working within it, and help to grasp the opportunities that exist.

“Following discussions with farmers and processors across Wales, Andy has been able to provide a vision of the future for the whole of the dairy sector which sets the direction for a more sustainable industry in the future.

“I would like to thank Andy for his work, undertaken in such a short period of time. I expect to publish the report, alongside the Welsh Government’s formal response, in the form of an action plan once I have given it due consideration.”

The Dairy Review was intended to draw on the work already undertaken by the Dairy Task Force but looked wider, taking views from all parts of the supply chain. It also considered what support the RDP 2014 – 2020 may provide to dairy farmers and the milk processing sector in Wales.

Meanwhile at Carmarthenshire’s recent NFU-Cymru conference, NFU President Meurig Raymond assured union members that the NFU was doing it all it can to assist its milk producing members get through the current price volatility when he spoke at the recent Carmarthenshire NFU Cymru conference.

Mr Raymond explained helping farmers within the milk industry was the Union’s top priority at present. He said he has met with the leading banks to ask them to help farmers at this difficult time. He has met with Government to discuss tax concessions. They’ve given evidence to the Efra Committee asking for more powers to the Groceries Code Adjudicator. The NFU has spoken to milk buyers, particularly First Milk. Mr Raymond also told those present how he has personally had some very difficult meetings with the major retailers and has had some assurances that they will stock more British dairy products in the future.

Mr Raymond said, “We are grateful to shoppers for the positive messages we’ve received as dairy producers and pleased that so many consumers have come out and backed British dairy farmers at this time. We’ve been inundated on social media in particular by shoppers wanting to know where they should buy their dairy products to help us most. In response we have said that shoppers have to check the labels to make sure they are definitely buying British produce – not something that looks British. The Red Tractor mark is a good quick indicator. I would like to take this opportunity to thank the British public for all their support at this time.”

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Farming

Farmers’ Union recognises lifelong success of leading business founders

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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.

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Farming

Farmers fight back: Inheritance tax row at Welsh Labour conference

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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.

Farmers gather outside Venue Cymru as the Welsh Labour conference gets underway (Pic: Nigel Roberts/Herald)
Aberconwy MS Janet Finch-Saunders joined the farmer’s demonstration outside Welsh Labour’s conference in Llandudno (Image: Supplied)

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.”

Unite members wave flags (Image: Nigel Roberts/Herald)

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.

There were dozens of tractors in Llandudno, Conwy on Saturday (Image: AFP via Getty Images)

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.

Keir Starmer says that Labour is delivering for Wales, the farmers disagree (Image: PA)

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.

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Farming

Welsh Government could overturn Ceredigion cattle breeder’s house plans

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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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