The Welsh share of the EU direct aid package is £3.2m from a UK allocation of £26.2m. Payments will be based on how much milk they produced in 2014-15, with an average payment being put at £1,800 per farm.
“This has clearly been a period of significant financial difficulty for our dairy farmers and I am pleased to deliver this additional support from the EU,” Deputy Minister for Farming and Food, Rebecca Evans, said over the weekend.
“We hope to make the payment quickly and I hope it will offer some help with cash flow.
“This support is in recognition of the important role the dairy sector plays within the agriculture industry and its importance to the Welsh economy.
“We are determined to work with all parts of the industry to deliver on the vision we share of a modern, professional, sustainable and profitable agriculture industry in Wales.
“We have been working with our counterparts across the UK to secure this boost for our farmers and are also working with the Commission to look at ways of bringing greater fairness and transparency to the supply chain.
“I would also like to see further action taken at EU level to help open new markets for our producers and consider how we increase exports from Wales and from Europe.
“I believe we need to kick-start a significant programme of work across the EU to support all of our farmers, including the red meat sector, to help the entire industry move forward.”
Last year, the Deputy Minister commissioned a review of the dairy sector in Wales which provides a strategic direction for the dairy sector across the whole supply chain, offering recommendations that Welsh Government and the industry can put in place to deliver resilience, economic growth and the creation of additional jobs within the Welsh industry.
Work is currently underway to implement the recommendations of the review.
NFU Cymru said the Welsh Government’s allocation of the EU farming support package would provide a welcome cash boost but is looking for more action to make a long-term difference for many Welsh dairy farmers struggling to keep their businesses afloat.
Aled Jones, the union’s milk board chairman, said: “Official figures show that average UK milk prices have fallen by 25 per cent in the last year, but that hides the variance within the sector.
“Many hundreds of our members who supply First Milk have seen their milk price halved in the same period. Given the serious cash flow crisis on Welsh dairy farms it is important now that this money is distributed as quickly as possible.
“We see the allocation of the EU farming support package as being far from the end of the story,” he added.
“While it will provide some short-term relief it does not alter the fact that farmgate milk price remains well below the cost of production, with farmers losing significant money on every litre of milk they produce.
“We will continue to urge the government, processors and retailers to work with farmers for more fair and transparent contracts, stronger producer groups and the development of a futures market.”
Source: FG Insights