Record profits announced by supermarkets for 2010 are being made of the expense of Welsh producers, says Montgomeryshire AM Mick Bates, who is concerned over the future of the dairy industry in Wales.
New figures released by DairyCo revealed dairy farmers in Wales and England received an average 23.8p per litre for their milk during 2009/2010 compared to 25.8p the previous year. But the retailers’ share of the price went up from 18.8p to 22.4p.
Commenting, Mr Bates said:
“It is appalling that while supermarkets are announcing record profits year on year, our Welsh dairy industry is in decline as farmers simply do not receive a fair price for their produce.
“The number of dairy farms has decreased from 2,727 in 2006 to 2,094 last year, which is deeply worrying. We have excellent quality produce here in Wales, but this is undervalued by the major retailers who are paying a lower farmgate price for milk this year than last.
“There is no longer an honest connection between cost price and sale price and Welsh dairy farmers are paying the price for these vast supermarket profits. It is time for retailers to play fair and pay a decent price for Welsh produce, to ensure a viable and sustainable agricultural industry in Wales.
“I hope that the Minister will do all she can to encourage the supermarkets to up the price they pay to farmers. Another great move is to ensure that Welsh schoolchildren are drinking Welsh school milk, which is locally sourced and produced rather than being imported from across the border.”
