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Last Updated: Sunday, 23 July 2006, 08:17 GMT 09:17 UK
Dairy fears ahead of Royal Welsh
Cow
Dairy farmers are being 'squeezed,' according to NFU Cymru
Rising diesel prices are adding to dairy farmers' worries, a union leader warns ahead of the Royal Welsh Show.

Dai Davies, president of the National Farmers' Union (NFU) Cymru, said: "At a time when milk prices are plummeting, costs are shooting up".

With Wales' main agricultural event opening at Llanelwedd in Powys on Monday, he said "despair at low milk prices" was felt throughout the UK.

Other NFU concerns include TB in cattle and red tape over sheep tagging.

The NFU said contractors providing silage for feed were concerned that because of the recent hike in diesel prices, dairy farmers would have difficulty in meeting their charges.

Mr Davies said the dairy industry needed "profitability and long-term stability".

He added: "Talk of downsizing the industry will not resolve the problem and there is a real danger that we will lose critical mass."

A survey last year by NFU Cymru found that dairy farmers received 10p out of 35p per pint of milk.

The number of dairy farmers in Wales has fallen in 10 years from 5,363 to 3,658 in 2004, according to Welsh Assembly Government figures.

The Farmers' Union of Wales has also warned in recent months that dairy farmers could become an "endangered species" due to low prices and the "overwhelming power" of supermarkets.


SEE ALSO
TB 'puts dairy farming at risk'
11 Apr 06 |  England
Overnight milk protest called off
09 Sep 05 |  Scotland
Farmers protest over milk prices
01 Sep 05 |  Scotland
Wales leading new demand for milk
20 May 05 |  South West Wales

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