| Livestock
FUW launches report into post-quota dairy sector
A report on the current state of the Welsh dairy sector has been launched by the Farmers’ Union of Wales in order to
identify the main issues affecting the sector and those mechanisms which might mitigate some current problems.
he FUW’s Milk and Dairy
Produce Committee Chairman,
Rhydian Owen, said: “ The
Welsh dairy industry continues
to reel under months of
continuing low prices and poor
profitability and almost half of dairy farmers in
Britain have stated an intention to quit the
sector.
“The FUW is extremely concerned that any
sign of a price recovery may still be some way
into the future due to a continuing global
supply and demand imbalance.
T
“The FUW Policy Department continues to
work with the Union’s Milk and Dairy
Produce Committee to fight for the
prosperity of Welsh dairy farmers”
“We have now sent a synopsis of the main
issues contributing to the current dairy sector
crisis to local MPs, MEPs and will be
distributing this information further to the newly
elected Welsh Assembly members.”
The report highlights that a year after milk
quotas have been abolished, and in the
absence of any observable or predicted
changes to current global supply and demand
46 | Farming Monthly | May 2016
dynamics, it is imperative that the milk market is
managed in a manner which stabilises prices.
“The market has to be managed in a way
that ensures a fair standard of living, protects
producers from the effects of unfair practises
and strengthens their position in the supply
chain.
“Furthermore, the on-going 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,” added Mr Owen.
The report further concludes that measures
which enhance the sustainability and viability of
the Welsh dairy sector will therefore be
essential to ensure future competitiveness and
innovation.
FUW Senior Policy Officer Dr Hazel Wright
said: “The FUW Policy Department continues to
work with the Union’s Milk and Dairy Produce
Committee to fight for the prosperity of Welsh
dairy farmers.
”In order to preserve the future of Welsh and
British dairy farmers, it will be crucial to ensure
that resilience does not merely focus on
producing milk at lower prices, but instead
recognises the need to intervene in a way
which mitigates the wealth of issues which
remain out of the control of the primary
producer.”
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