Welsh Government launches dairy support package

Written by Rachel Martin

Welsh Rural Affairs Minister Lesley Griffiths has unveiled funding for Welsh dairy farmers hardest hit by the exceptional market conditions as a result of coronavirus (Covid-19).

The dairy sector has felt the immediate impact of the global pandemic with the closure of the foodservice and hospitality sectors.

The minister confirmed 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.

It comes after a similar funding package was made available in England.

The money aims to help ensure farmers can continue to operate without impacting animal welfare and the environment.

Further details on the scheme will be announced shortly.


It follows a series of announcements aimed at supporting the sector during these challenging times, including:

• A new consumer campaign, led by AHDB, to increase consumer demand for milk by 3%;
• The temporary relaxation of competition laws to enable greater collaboration so the sector, including dairy farmers and processors, can work closer to solve the differences between supply and demand; and
• Opening of the EU Public intervention and private storage aid for skimmed milk, butter and cheese.

Announcing the funding, Minister Griffiths said: The closure of the foodservice sector has had an immediate and significant impact on our dairy sector and market prices.

“The measures introduced so far will help provide some stability for the dairy sector, but I recognise there is a need to support those farms hardest hit by a situation which is primarily outside of their control.

“I am, therefore, pleased to confirm dairy farmers in Wales will be eligible for support helping them adapt to the exceptional market conditions and ensuring they can continue to operate without impacting animal welfare and the environment.

Further details of the scheme will be announced shortly, but I wanted to commit today to support this core group of dairy farmers with a payment to offset some of the financial impacts they have experienced.

“We will continue to work closely with the sector to help them address the issues they face at this difficult time. By working together we can ensure an optimistic future for the dairy sector and its supply chain in Wales.”

It follows considerable lobbying, with 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.

NFU Cymru deputy president Aled Jones said: “The overnight loss of the foodservice 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.

The package of support will help address some of the most immediate cash flow 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 who have 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.”

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