Fair Play for Welsh Dairy Producers (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

Fair Play for Welsh Dairy Producers

October 1, 2008 12:00 AM
By Mick Bates in People and Planet

The Fair Trade movement has gained much momentum recently and rightly so. The brand is emerging everywhere from food labels to university canteens and the concept is simple. Give people a fair share in what they produce. However, all too often Fair Trade holds connotations of remote countries, countries in the economic "South."

There is an industry that exists here in Wales, the Welsh dairy industry, in need of equity like so many of those associated with Fair Trade. Many of us consume its products on a daily basis but while we complain about rising costs, we fail to consider the implication this has on producers.

The truth is that Welsh dairy farming is in trouble. Not only are production costs escalating, but producers' share in the profit of retailed dairy has fallen.

Just last year the average farmgate price of milk was 17.4ppl, while on farm costs totalled near 22ppl; a loss of 4.68p per litre sold. This year production costs have risen by 27%, which means a lower income for farmers and brings the industry near the brink of collapse.

Producers are suffering the consequences of this economic crisis, which is driving an average of three dairy farmers out of the industry each week. But the opportunity to improve the Welsh dairy industry is already here.

We need to see supermarkets promote Welsh produce by indicating on their receipts the percentage of locally sourced items. We should establish and promote new lines of produce that pay a fair price to the producer.

We should adopt the Fair Trade principle for our industries here in Wales, with an independent regulatory body to ensure a fair pricing structure. Our Welsh dairy industry can thrive once again, but we must ensure fair play for our Welsh producers if we are to safeguard this industry for the future.