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
Agrisgôp helps Welsh farming families tackle succession challenges
A PROGRAMME designed to support farming families in planning for the future is helping to break down one of agriculture’s most sensitive issues – succession.
Farm inheritance and succession planning returned to the spotlight in 2024 following UK Government reforms to inheritance tax (IHT), prompting renewed concern across the industry.
In response, Agrisgôp leader Elaine Rees Jones brought together farming families in the Welshpool area to take part in a structured programme aimed at addressing the issue head-on.
Agrisgôp, a fully funded management development initiative, encourages farmers to work collaboratively, building confidence and business skills through action learning.
Two distinct groups emerged: one made up of parents seeking to plan the future of their farms, and another of younger family members exploring how to take on responsibility and transfer knowledge from the previous generation.
A key theme identified early on was the importance of communication between generations.
Elaine said: “The meetings have offered the opportunity to gain professional and peer advice, time away from the farm to assess situations, and a safe, confidential space for discussion.
“Group members have shared concerns and apprehensions while getting to grips with the scale of the challenge, and have begun to develop action plans.
“The honesty and openness shown has been incredibly humbling.”
For many participants, the programme has provided the confidence to begin formal discussions with professional advisers.
One farming couple, currently working through the process of passing assets to their two sons, said the experience had been invaluable.
“It has made us tackle things properly. We had already started looking at succession before the Rachel Reeves budget, so this wasn’t a knee-jerk reaction.
“It’s a complicated process with no easy answers, and every farm is different. But Agrisgôp has helped us go into meetings with solicitors and accountants informed, rather than just accepting advice blindly.”
Another participant described succession planning as “mind-blowing” before joining the group, adding that expert input had highlighted the importance of early preparation.
The programme included a recent panel session in Welshpool, where professionals returned to answer questions from participants, alongside one-to-one sessions to clarify individual plans.
Specialist advice was provided on legal, financial, and land valuation matters, with a clear message emerging on the importance of having a valid will in place.
Angharad Hird, of Lanyon Bowdler Solicitors, warned that failing to make a will can have serious consequences, highlighting a case where a young farmer died unexpectedly. Under intestacy rules, his estate was divided between his wife and children in a way that may not have reflected the family’s wishes.
Financial planning was also a major focus. From April 2027, unused pension funds will be included within estates for IHT purposes, potentially attracting tax of up to 40%.
Emma Hall, a chartered financial planner, said some clients are already restructuring their finances to mitigate future liabilities, including placing assets into trusts or converting pension funds into income-generating annuities.
Land and property valuation was another key consideration. Richard Corbett, of Roger Parry & Partners, stressed that valuations must reflect current market conditions at the time of assessment, while also taking into account factors such as shared ownership or rights of way.
Accountant Sion Roberts highlighted the importance of setting emotion aside when making decisions.
“There is no one-size-fits-all solution,” he said. “Each farm is different, so it’s vital to understand your priorities and get the right advice.”
The issue of care fees and asset transfers was also raised, with warnings about the risks of deliberately reducing assets to avoid future costs.
Alongside Agrisgôp, Farming Connect’s Succession Pathway offers structured support for families navigating the process. This includes business reviews, facilitated family meetings, bespoke planning, and access to specialist legal services.
Organisers say early planning is crucial to securing both family relationships and the long-term future of farm businesses.
Farmers interested in accessing support can contact Farming Connect on 03456 000 813 or visit their website for further information.
Business
Call to keep holiday pod at Pembrokeshire Narberth farm
A CALL to keep a holiday pod sited on a Pembrokeshire farm, as part of a wider holiday pod farm diversification over two areas which saw the larger part supported, has been submitted to county planners.
In an application to Pembrokeshire County Council, Bill Ridge of Vaynor Farm Ltd, Bethesda, through agent Gerald Blain Associates Limited, seeks retrospective permission to keep a self-catering pod at Broomley Farm, Sodston, Narberth, works having been completed in 2022.
The application is part of a wider scheme of holiday pods diversification encompassing two farms.
Back in December, Pembrokeshire County Council’s planning committee granted delegated retrospective permission to Vaynor Farm Ltd for the siting of two self-catering holiday accommodation pods at The Cart House, Vaynor Farm, Bethesda, near Narberth as part of a farm diversification enterprise.
A supporting statement accompanying the latest application says: “Vaynor farm is a 400-acre working dairy farm with a herd of 700 milking cows. The enterprise comprises of three self-catering pods. Two of the pods are situated at the Vaynor homestead and another at the opposite end of the holding at Broomley farm.
“The first unit was sited adjacent to Vaynor farm stead some four years ago and a further two added in subsequent years. The units have enjoyed successful occupancy rates over several years offering a unique secluded tourism offer on a working dairy farm, more detail of which is outlined within the supporting business plan.”
It says the Broomley farm application is a resubmission of a previously refused scheme, adding: “It should be noted that this application was originally part of [the application] which was recommended approval at planning committee in December 2025. This element however was separated due to its location on another part of Vaynor farm deeming it not possible to be considered under the same application.”
At the December meeting, an officer report said: “A business plan has been submitted with [that] application, which explains that due to uncertainties associated with dairy farming, the applicant has sought to diversify the farm enterprise to incorporate tourism accommodation.
“The application makes the case that the proposed development represents farm diversification. It is acknowledged that the development has resulted in the provision of an alternative type of holiday accommodation for which it has been demonstrated there is a demand, contributing to the diversity and quality of accommodation available within the county and supporting an existing farm business, with consequent economic and social benefits.
“Evidence has been provided that demonstrates the extent to which the pods have provided income which has been used to support the farm business.”
That application was conditionally approved; the latest part to be considered by planners at a later date.
Farming
Experts warn Senedd of ‘systemic failure’ to enforce animal welfare laws in Wales
Fewer than five per cent of farms inspected as prosecutions remain rare
LEGAL experts have warned that animal welfare laws in Wales are being routinely ignored due to a “critical failure” in enforcement, with thousands of farms going uninspected and breaches rarely leading to action.
The stark warning came during an event at the Senedd on Tuesday (Mar 25), organised by the Animal Law Foundation and sponsored by Carolyn Thomas MS.
The meeting brought together legal specialists, enforcement bodies and Members of the Senedd to examine what campaigners describe as a growing gap between legislation and real-world enforcement.
Figures presented at the event paint a troubling picture. Just 4.67 per cent of Wales’ 34,777 farms are inspected, with only one inspector responsible for every 657 farms. Even when concerns are raised, only around 65 per cent of complaints result in an inspection.
More strikingly, where breaches are identified, prosecutions are launched in fewer than one per cent of cases.
The Animal Law Foundation described this as part of a wider “Enforcement Problem” — a term used to describe situations where laws exist but are not effectively applied.
Edie Bowles, Executive Director of the foundation, said: “These figures point to a system that is simply not working. When inspections are rare, complaints do not trigger investigations, and breaches do not lead to enforcement action, the legal safeguards risk becoming little more than words on paper.”
She added that meaningful enforcement is essential not only to protect animals, but to maintain public confidence in the law.
Carolyn Thomas MS said ensuring existing laws are properly enforced “should not be a controversial ask,” but acknowledged it remains a significant challenge.
Calls for stronger oversight were echoed by representatives of Animal Licensing Wales, who highlighted the need for greater resources and capacity within enforcement bodies.
The findings are backed by recent undercover investigations, including footage from a Wrexham slaughterhouse and a farm at Tafarn Y Bugail, which allegedly showed serious mistreatment of animals.
Abigail Penny, Executive Director of Animal Equality UK, said: “What we uncovered was an extraordinary failure of the systems meant to protect animals. That such cruelty could persist, undetected and unchallenged, shows the urgent need for stronger oversight and meaningful sanctions.”
Animal welfare on farms in Wales is governed by the Animal Welfare Act 2006 and a range of additional regulations covering farming, transport and slaughter. Enforcement responsibility lies primarily with local authorities, while the Food Standards Agency oversees welfare in slaughterhouses.
Campaigners say that without urgent reform, those protections risk being undermined by a lack of inspections, limited resources, and a reluctance to take enforcement action.
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