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.

A CALL for a Pembrokeshire dairy farm to keep two “alternative” holiday pods sited without permission as a way of diversifying in an uncertain industry has been given the go-ahead.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Vaynor Farm Ltd sought retrospective permission 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.

It was before committee members as it was recommended for delegated conditional approval by senior officers despite being against the development plan.

Previous retrospective schemes, for two self-catering pods along with an application to retain a shepherd hut accommodation pod at another farm, a part of the Vaynor Farm farm enterprise, were refused in 2023 and 2025, the latter due to “an unjustified and harmful impact on the character and appearance of the open countryside”.

Detailing the current application, an officer report for members said the pods: Vaynor Farm Pod within the garden of The Cart House, and The Paddock Pod, on the edge of a small paddock, were constructed off-site and have been transported to their current locations, with external decking, hot tubs, a barbecue area and car parking provided for each pod.

It added: “A business plan has been submitted with the 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.

“However, officers consider that should planning permission be granted, a [planning obligation] will be necessary to ensure that the accommodation pods continue to support the farm business and are not separated from it at some future point in time.”

Delegated conditional approval limiting the use and occupation of the self-catering accommodation pods to short term holiday use only was moved by Cllr Brian Hall and unanimously backed by committee members.

AN AGRICULTURAL worker-only condition imposed when a Pembrokeshire bungalow was built more than 30 years ago has been removed following a request to county planners.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, Pamela Griffiths sought permission for the removal of a previously imposed agricultural worker-only condition for bungalow Maes Yr Awel, Eglwyswrw, near Crymych.

Members heard an application for a certificate of lawfulness allowing the applicant to stay at the bungalow, there having been a breach of that condition in excess of 10 years, had been granted earlier this year, the latest application seeking to remove the condition entirely.

An application for a certificate of lawfulness allows an applicant to stay at a development if they can provide proof of occupancy over a prolonged period.

A supporting statement for the earlier certificate of lawfulness said: “The dwelling was constructed in 1992 and has been occupied in breach of the occupancy restriction since February 2014, on the death of the applicant’s mother.”

It added: “The dwelling was substantially complete in 1992 and first occupied 28th January 1992. Mr EC and Mrs ME Griffiths were farmers and were the original occupiers of the property, together with their daughter, Ms P Griffiths, the applicant.

“There is no dispute that the condition was originally complied with by the applicants’ mother and father, but on the death of the applicants’ parents the applicant became the sole resident and has not been solely or mainly employed in agriculture at any time.”

A report for committee members said the removal of the condition was now recommended as the site benefitted from the lawfulness certificate and the agricultural condition remaining was “no longer considered reasonable”.

Approval was moved by Cllr Brian Hall and unanimously supported by committee members.