Lifeline for dairy farmers (From Western Telegraph)

Lifeline for dairy farmers

A share of a £51 million European compensation package could save many Pembrokeshire milk producers from financial ruin.

The strength of sterling has flooded the market with cheap imports and local dairy producers have seen the milk price slump to a low of 13 pence per litre, half what they were getting five years ago.

Poor world commodity prices, competition in the supply chain and over-supply have also combined to drive down producer prices.

Concerned dairy farmers gathered in Haverfordwest on Thursday to urge the countys two MPs, Jackie Lawrence and Nick Ainger, to put pressure on the Government to claim the £51 million agrimonetary compensation. The money is available from Europe to compensate milk producers for the strong £ but the Government has just seven days left to claim it. For the average 80-cow herd in Pembrokeshire, it would mean an additional 0.36ppl or £1,700 a year.

As Dylan Morgan, the NFU policy adviser responsible for Pembrokeshire, Ceredigion and Carmarthenshire, pointed out, it could make the difference between survival or bankruptcy for local producers.

Last year the average dairy farm income in this part of the world was £5,300. The agrimonetary compensation would equate to a quarter of that figure, he says.

The Haverfordwest Cheese partnership between First Milk and Dairy Crest is now seen as vital to Pembrokeshire producers. Remote areas without processing facilities could become casualties in an over-supply situation, suggests Dylan Morgan.

It is a worrying situation when the talk is of milk being dumped, he says. If we didnt have processing plants in this area, the milk companies might consider the cost of transport to be prohibitive.

The message at Thursdays meeting was co-operation between individual milk-buying groups - First Milk, Dansco and Dairy Crest in Pembrokeshire - to create a united bargaining power against the retailing giants.

There is also strong support among the farming industry for the dualling of the A40 into Pembrokeshire to improve the links with their buyers and suppliers.