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Bates fights for future of Welsh dairy industry

February 25, 2009 12:00 AM

Liberal Democrat Shadow Minister for Rural Affairs, Mick Bates AM, has urged the Minister in the chamber to give more support for the Welsh dairy industry following the latest round of farmgate milk price cuts, which has seen Arla Foods cut its milk price to farmers by 2p per litre (ppl), First Milk by 1.25ppl, Dairy Crest by 1.75ppl and Wiseman by 2.2ppl.

Commenting, Mick stated:

"Since New Year the farm gate price paid to dairy producers has plunged with Arla, First Milk, Wiseman and Dairy Crest all cutting the price they pay to farmers. Poor labelling of imported produce in supermarkets is undermining our local produce and at this difficult economic time when farmers are struggling to cover their production costs this is having a devastating impact on the industry.

"Too much money is being lost between the farm and the price consumers pay at the supermarket. Recent low returns in the dairy sector have been leading to 3 dairy farmers a week leaving the industry in Wales.

"Processors and supermarkets alike must pay a fair price to farmers. It is crucial that the Minister meets with supermarkets and large retailers to ensure that farmers receive a fair price for their produce to bring stability back to the industry.

"All produce in supermarkets must be properly labelled, to encourage consumers to purchase Welsh dairy products and secure a sustainable Welsh dairy industry for the future.

"The Welsh Government must increase support to maximise the use of renewable energy on farms, in particular anaerobic digestion, which offers huge potential for generating sustainable heat and power, which will reduce production costs and provide an opportunity for farmers to increase the viability of their businesses."

Ends/Diwedd

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