The government and consumers are being urged to support Welsh dairy farming, as recent statistics indicate a growing trend of farmers leaving the industry.
At the Welsh Dairy Show held on October 22, NFU Cymru emphasised that the sector is in urgent need of a 'confidence boost.'
Data from AHDB reveals that over the past five years, 17% of dairy farmers in Wales have opted to exit the business.
Several factors contribute to this trend, including ongoing market volatility, uncertainty regarding future policies, and escalating costs.
MORE NEWS | ADM's regenerative programme opens for UK farmers
MORE NEWS | NFU warns of Agricultural Property Relief cuts
The cumulative expenses associated with meeting environmental regulations and the challenges posed by bovine TB have also been cited as significant issues.
NFU Cymru cautioned that these challenges have been 'felt acutely' by dairy producers across the nation.
The union’s dairy board chairman Jonathan Wilkinson stated: “Dairy farmers are struggling to find the confidence to make the decisions necessary to drive their businesses forward.
"Farmers are being asked to make significant capital investment in their farm to comply with environmental legislation and at the same time, are continuing to battle the devastating impacts of bovine TB.
"This is against the backdrop of uncertainty as dairy farmers in Wales continue to question if the proposed SFS scheme will be an attractive and viable option for the sector.
"In addition, high interest rates and rising input costs lie heavily on farm balance sheets, restricting cash flow and limiting the ability of farmers to make the necessary investment."
In this context of uncertainty, over 280 dairy farms in Wales have ceased operations in the past five years, according to the data.
This comes despite the fact that the sector contributes more than £850m to the Welsh economy, representing nearly half (47%) of the gross output of Welsh agricultural production.
Wilkinson remarked: To ensure the next generation of Welsh dairy farmers have a prosperous future, the sector must have the confidence to invest in the here and now,"
"To ensure the next generation of Welsh dairy farmers have a prosperous future, the sector must have the confidence to invest in the here and now," Mr. Wilkinson remarked.
"We also urge our government to address the challenges we face and to listen to the dairy industry to safeguard the continued production of quality, nutritious and climate friendly milk."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here