THE dairy industry has been hit with another devastating blow, this time from the biggest co-operative in the UK, Arla with it announcing a cut to the price it pays its UK members by 1.18ppl taking it to 23.81ppl.

It comes just a few days after a similar 1ppl cut by First Milk.

Following NFU Cymru’s Milk Board meeting in Llanelwedd this week, board chairman Aled Jones said, “This is yet another body blow to dairy farmers whose businesses have been in utter turmoil for the past 12 months and has led to 450 producers quitting dairy farming since this time last year across England and Wales. The recent series of cuts once again highlight the need for short-term solutions to address the problems happening now.

“Global factors do mean that the dairy sector continues to face very difficult and challenging times. The farm-gate milk price is down hugely on where it was a year ago, well below the cost of production. We do have influence over some aspects that can help in the short term and earlier this year, we welcomed the Welsh Dairy Review carried out by Andy Richardson and now look for all his recommendations to be implemented without delay.

“In particular our own Government here in Wales can ensure that the next round of European Structural Funds are used to encourage and facilitate improved primary milk production, dairy processing, product marketing and innovation in Wales. Welsh Government can also act to ensure that its own public procurement service includes Welsh dairy products to supply Welsh schools, hospitals and the wider public sector.

“We also urgently need milk-buyers to be more transparent in pricing. Although there are a few clear formulas employed by milk processors, these are few and far between. We need all processors to improve transparency in pricing and must stop idly following one another to the bottom; this is a dire situation and we need to see the dairy industry pull through this period of volatility. Government has a role here too in insisting that processors provide up-to-date market and production data so that the whole supply chain can better understand what’s happening and how to manage risk in the future.”