The Welsh dairy industry must further consolidate its farmer supply base under the wing of co-operatives and strive to reduce its cost base by integrating haulage.
It will also have to become driven by marketing and branding instead of by production, with co-ops getting a bigger share of processing.
Those were the key themes of a major conference in Aberystwyth this week that sought to tackle the crisis precipitated by the farmgate price of milk persisting below the cost of production in Wales, and the likely exodus of up to 20% of farmers from milk production in coming years.
The industry is also uncertain about the details of impending CAP reform. Minister for environment, planning and countryside
Carwyn Jones stressed the government could not intervene to impose a higher payment to farmers. And John Cook, vice chairman of Dairy Farmers of Britain, said farmers had to face the fact that the market, not politicians, would decide the future size and structure of the industry. “The exodus of farmers will continue and will speed up with CAP reform,” he added.
First Milk chairman Roger Evans said growing demand in world markets offered hope. Co-ops could also look to enhancing milk powders for specific markets, and the sector would do well to balance milk supply through the year, avoiding the spring flush.
Safeway head of communications Kevin Hawkins said a higher farmgate price for milk was self-defeating as it encouraged farmers to produce more. Only a fraction of supermarket price rises for milk to help suppliers had been passed back to farmers, which indicated an induced increase by the multiples was not sustainable.
It will also have to become driven by marketing and branding instead of by production, with co-ops getting a bigger share of processing.
Those were the key themes of a major conference in Aberystwyth this week that sought to tackle the crisis precipitated by the farmgate price of milk persisting below the cost of production in Wales, and the likely exodus of up to 20% of farmers from milk production in coming years.
The industry is also uncertain about the details of impending CAP reform. Minister for environment, planning and countryside
Carwyn Jones stressed the government could not intervene to impose a higher payment to farmers. And John Cook, vice chairman of Dairy Farmers of Britain, said farmers had to face the fact that the market, not politicians, would decide the future size and structure of the industry. “The exodus of farmers will continue and will speed up with CAP reform,” he added.
First Milk chairman Roger Evans said growing demand in world markets offered hope. Co-ops could also look to enhancing milk powders for specific markets, and the sector would do well to balance milk supply through the year, avoiding the spring flush.
Safeway head of communications Kevin Hawkins said a higher farmgate price for milk was self-defeating as it encouraged farmers to produce more. Only a fraction of supermarket price rises for milk to help suppliers had been passed back to farmers, which indicated an induced increase by the multiples was not sustainable.
No comments yet