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

Basic Payment Scheme 2025 balance paid to 95% of Welsh farmers

Published

9 hours ago

December 14, 2025

Tom Sinclair

Final year of BPS as transition to Sustainable Farming Scheme begins

The WELSH Government says more than ninety-five per cent of farm businesses have now received their full or balance payment under the final year of the Basic Payment Scheme (BPS), ahead of the introduction of the new Sustainable Farming Scheme (SFS) in 2026.

Announcing the update on Friday (Dec 12), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, confirmed that over 15,400 Welsh farm businesses have been paid £68.7m. This comes on top of the £160m issued in BPS advance payments since 14 October.

Final round of BPS payments

The Basic Payment Scheme, which has been the backbone of farm support in Wales for a decade, provides direct income support to help farmers plan and manage their businesses. BPS 2025 marks the last year in which full BPS payments will be made before the scheme begins to be phased out.

The Cabinet Secretary said officials would “continue to process the outstanding BPS 2025 claims as soon as possible,” adding that all but the most complex cases should be completed by 30 June 2026.

Payments issued today represent the main balance due to farmers following earlier advances, giving many businesses the cash flow they need during the quieter winter period—traditionally a challenging time in the agricultural calendar.

Shift to Sustainable Farming Scheme in 2026

From 1 January 2026, the Welsh Government will begin rolling out the Sustainable Farming Scheme, a major reform to how agricultural support is delivered. The SFS will reward farmers for environmental outcomes such as habitat management, carbon reduction and biodiversity improvements, alongside continued food production.

The government has argued that the new scheme is essential to meeting Wales’ climate and nature targets while ensuring long-term resilience in the sector. However, the transition has been closely watched by farming unions, who have raised concerns about the administrative burden, income stability, and the speed at which BPS is being phased out.

Mr Irranca-Davies reaffirmed the government’s stance, saying: “This government is steadfastly committed to supporting Welsh farmers to sustainably produce quality food. This is demonstrated today in our payment of the BPS 2025 balance payments and will continue throughout the transition period.”

Sector reaction

Farming unions are expected to scrutinise the detail of today’s announcement, particularly around remaining unpaid cases. Last year, late payments led to frustration in parts of the sector, with unions calling for greater certainty as the industry faces rising input costs, supply chain pressures and continued market volatility.

The move to the SFS remains one of the most significant agricultural policy changes in Wales since devolution. Ministers insist the shift is designed to support both food production and environmental stewardship, while critics warn the transition must not undermine farm viability—especially for family-run livestock farms that dominate rural areas such as Pembrokeshire, Ceredigion and Carmarthenshire.

What happens next

Farmers still awaiting their BPS 2025 balance will continue to be processed “as soon as possible”, the Welsh Government said. Officials will also publish updated guidance on the Sustainable Farming Scheme ahead of its launch.

The coming year will therefore become a pivotal moment for Welsh agriculture, as the long-standing BPS framework—which provided over £200m annually to Welsh farmers—makes way for a new results-based model that will shape the industry for decades to come.

Community

Wolfscastle farm’s new shed sparked ‘noise nuisance’ claims

Published

1 week ago

December 5, 2025

Bruce Sinclair - Local Democracy Reporter

A PEMBROKESHIRE farmer “jumped the gun” in his enthusiasm to build a new cattle shed which includes ‘robot slurry scrapers’ that have been causing a noise nuisance for neighbours, county planners heard.

In a retrospective application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Aled Jenkins sought permission for a replacement cattle housing and silage clamp at Upper Ty Rhos, Wolfscastle.

An officer report said Upper Ty Rhos consists of a herd of 630 youngstock beef cattle, the applicant seeking permission for the replacement 100-metre-long cattle housing building.

It said the building benefits from a robotic scraping system to internally clean it to improve animal welfare and efficiency.

However, the slurry scraper system in operation has been found to constitute a statutory noise nuisance.

“The introduction of the slurry scraper system has resulted in a new noise source to the locality that is having a significant detrimental impact upon local amenity. The nuisance noise is directly associated with the extended hours of operation of the slurry scraper system and the noise created by the two motors powering the system including the drive mechanism that moves the scraper through the building to remove slurry produced by the housed cattle.

“To further exacerbate the situation, the building has open voids to the eastern gable end, which is within close proximity to the neighbouring property resulting in the building being acoustically weak.

“An acoustic report has been submitted with mitigation methods provided including relocating motors and associated equipment into external enclosures, reduction of noise egress through openings by installing hit-and-miss louvres and/or PVC strip curtains and consideration of blocking the gap between roof pitches along the ridge of the building.”

Three letters of concern were received from members of the public raising concerns including visual and environmental impact, noise issues and a potential for the herd size to increase.

Speaking at the meeting, neighbour Dr Andrew Williams, who stressed he was not seeking to have the shed removed, raised concerns about the noise from the ‘robot scrapers,’ exacerbated by cattle being concentrated in the immediate area from the wider farm complex.

Agent Wyn Harries addressed concerns about the retrospective nature was a result of over-enthusiasm by his client who “jumped the gun”.

He said there was now a scheme that was “fully worked through,” dealing with noise and other issues.

Members backed approval, which includes noise mitigation to address the impact of the robot scrapers; one member, Cllr Tony Wilcox, abstaining on the grounds of the retrospective native of the building “the size of a football field”.

Farming

FUW urges government action as plunging dairy prices threaten family farms

Published

1 week ago

December 5, 2025

Tom Sinclair

THE FARMER’s UNION OF WALES has sounded the alarm over a sharp and sustained collapse in dairy prices, warning that the situation is placing intolerable pressure on family farms already grappling with regulatory change, rising costs and wider economic uncertainty.

The Union convened an emergency meeting of its Animal Health and Dairy Committee last week to assess the scale of the crisis. Representatives from across Wales reported widespread anxiety, with many members seeing milk prices fall dramatically through the autumn. Processors are now signalling further cuts in early 2026, while commodity markets offer little sign of stability heading into spring.

Farmers, fearful of jeopardising commercial relationships, have approached the FUW confidentially to express grave concern about projected milk payments for the coming months. Many say the offers being made will fall far below the cost of production.

Average milk prices are forecast at just 30–35 pence per litre, against estimated production costs of 39–44 pence per litre (Kite Consulting). On current trajectories, the FUW warns a typical Welsh dairy farm could lose thousands of pounds per month for as long as the downturn persists.

Following its committee meeting, the Union raised the matter directly with Deputy First Minister Huw Irranca-Davies MS during talks in Cardiff on Wednesday, December 3. Officials stressed the immediate threat facing family-run dairy farms and called for urgent consideration of government support to prevent long-term damage to the sector.

Gerwyn Williams, Chair of the FUW Animal Health and Dairy Committee, said the pace of the price crash was “unprecedented”.

“Farmers are facing an impossible situation where input costs remain high while the value of their product plummets. The viability of many family farms is now at serious risk. We need immediate assurances that this crisis is being treated with the urgency it deserves.

“Some can weather a short storm, but rumours that this could continue into summer 2026 will see businesses shut. These modest family farms have already invested heavily to meet regulatory requirements. Cuts on this scale will severely impact their ability to service repayments.”

FUW Deputy President Dai Miles warned that the consequences extend far beyond farm gates.

“Dairy farming underpins thousands of jobs in Wales and is central to the economic, social and environmental fabric of rural communities. When prices fall this sharply, it isn’t just farmers who suffer — local businesses, services and entire communities feel the impact.

“We have made it clear to the Deputy First Minister that government must work with the industry to provide immediate stability and a long-term resilience plan.”

The FUW says it will continue to work with the Welsh Government, processors and supply-chain partners to seek solutions and secure fair, sustainable prices for producers.