Dairy funding gets backing from union
THE Welsh Government has announced a funding package for Welsh dairy farmers hardest hit by the exceptional market conditions as a result of Covid-19.
NFU Cymru has welcomed the announcement, which follows considerable NFU Cymru lobbying and a union-backed campaign that saw hundreds of Welsh dairy farmers write to their local politicians to ask for urgent help to protect the dairy sector.
While the details of the scheme are not yet known, Minister for Environment, Energy and Rural Affairs Lesley Griffiths MS has confirmed that eligible dairy farmers who have lost more than 25% of their income in April and subsequently May will be entitled to up to £10,000 to cover 70% of their lost income.
NFU Cymru deputy president Aled Jones said: “The overnight loss of the food service market as a result of Covid-19 has affected many Welsh dairy farmers. It is causing severe financial hardship to producers supplying processors who have been most impacted by the closure of cafes, restaurants, pubs and hospitality venues.
“We are pleased that Welsh Government has recognised the impact this is having on many dairy farming businesses and has now come forward with a hardship package for those impacted most by the current market conditions.
“The package of support will help address some of the most immediate cashflow problems faced by dairy farmers, some of whom have been forced to dispose of milk because their processors have been unable to collect it and many more having received massive price cuts and significant delays to payments.
“We thank the Minister for her efforts in securing this funding at a time when we recognise the public purse is under significant pressure in dealing with the impacts of coronavirus across the whole economy and society in general.”
NFU Dairy Board chair Abi Reader said: “NFU Cymru, working closely with representatives across the Welsh dairy industry, has worked tirelessly to put the case forward to our government for the sector to be supported.
“We have been providing evidence of the impact that the sudden loss of markets has had on dairy farming businesses and case studies that have highlighted some of the difficulties that farming families currently face.
“Whilst we await further information of the detail of the scheme, the announcement will be a comfort to our dairy farmers who are currently facing the biggest losses as a result of Covid-19.
“We sincerely hope that this support, alongside the announcement of the AHDB/Dairy UK promotional campaign backed by government across the UK, alongside the opening of Private Storage Aid by the EU and changes to competition law announced by the UK Government last month, will help to provide some short-term stability to the Welsh dairy sector.”
In the coming days NFU Cymru will be having further discussions with the Welsh Government both directly and through the Dairy Focus Group to discuss the details of the package and to seek to ensure that the application process and subsequent payment can be made as promptly as possible.