Dairy farmers in Monmouthshire will be boosted by the launch of a new inquiry into the industry’s future.
The Welsh Affairs Committee, chaired by Monmouth MP David Davies, is set to examine the state of the dairy industry in Wales and its long-term sustainability.
In particular, the committee is seeking evidence on the economic and social importance of the dairy industry to Wales, the challenges facing dairy farmers and recent milk price developments.
It will also look at how the industry can be more competitive within the UK and globally, along with the effort being made by the UK and Welsh governments to assist the industry and the potential impact of the EU Dairy Package and the UK Groceries Code Adjudicator Bill.
Mr Davies said: “I am very pleased that the committee has agreed to undertake this inquiry.
“Farming is an important part of the economy in Monmouthshire and there are a number of local dairy farmers, some of whom came to visit me at the height of this summer’s crisis caused by sudden price cuts.”
Dairy farming accounts for 17 per cent of UK agricultural production by value and is the single largest agricultural sector at £3.7 billion. Wales has around 1,900 dairy farmers – about 20 per cent of the total amount in England and Wales – yet the number of farmers has declined steadily and there are now 40 per cent fewer dairy farmers in Wales compared to 2002.
This summer, the industry suffered a major crisis caused by price cuts announced by retailers and processors. Although some cuts were later withdrawn, the long-term sustainability of the industry is uncertain as it is currently operating at a £1.2 billion trade deficit.
In July, farm leaders and dairy processors agreed the principles for a new voluntary code of practice on contractual relationships in the dairy sector, a move supported by both the UK and Welsh governments.
The UK Government is also providing £5 million-worth of new funding under the Rural Economy Grant scheme to assist dairy farmers.
The deadline for written submissions is Monday, 5th November 2012. Once the committee has gathered its evidence, it will meet with Welsh farming unions in Aberystwyth on 8th November.
Further information on how to make a submission is available at:
www.parliament.uk/business/committees/committees-a-z/commons-select/welsh-affairs-committee