Dairy industry 'needs champion'

Farmers are not being paid a fair price for their produce, the report said

The number of dairy farmers in Wales has dropped by a third in five years and there are warnings that more needs to be done to save the industry.

Farmers are also not getting a fair price for the milk they produce, says a committee which analysed the industry.

It has recommended that an independent champion to promote the Welsh dairy industry should be put in place, and urged for a UK ombudsman.

The assembly government said it would give its response on Monday.

The report, which was carried out by the assembly's rural development sub-committee, warned that unless steps were taken the dairy industry in Wales did not have a secure future.

We are seeing an alarming decline in our dairy industry for a variety of reasons Alun Davies AM

Farmers are not getting a fair deal over the price they are paid by retailers for milk compared to the price charged by retailers to consumers, the committee found.

It called on public bodies to increase the proportion of dairy products they procured locally in order to help safeguard milk producers.

The report also said that a UK ombudsman was needed to help protect the dairy farming industry in Wales.

Chair of the committee, Alun Davies AM, said: "We are seeing an alarming decline in our dairy industry for a variety of reasons but chief among them appears to be the disparity in payments to farmers for their produce compared to prices charged by retailers.

"We urge the Welsh government to put pressure on the UK government to establish a UK ombudsman to protect producers' interests.

Welsh cheese

"We also believe there is more the Welsh government can do itself through establishing a Welsh dairy champion and public procurement."

The committee also recommended that more needed to be done to attract people to the industry.

"What we would like to see is the Welsh government encouraging demand for quality Welsh dairy products," added Mr Davies.

"We heard evidence of the energy put into promoting Welsh beef and lamb and would like to see similar efforts being made for Welsh cheese."

The inquiry took evidence from farming unions, dairy producers, promoters and the minister for rural affairs for the assembly government, Elin Jones AM.

A spokesman for the assembly government said it would give its response to the report on Monday.

• The report will be formally presented at the Royal Welsh Agricultural Show winter fair in Llanelwedd, Powys, on Monday.