MANY dairy producers in Wales are facing a milk price cut and these cuts will impact on those farmers paid on a basket pricing mechanism, in particular.

While NFU Cymru recognises that this may not be the case for all processors, with a number of dairy companies choosing to hold their prices for January, news of price cuts will be of concern to dairy farmers across Wales.

Chairman of NFU Cymru’s milk board Gareth Richards said: “What is extremely concerning and irresponsible at the moment is the unsubstantiated sentiment from various industry commentators, who have been talking the market - if we are not careful - into a new market crash.

"Welsh dairy farmers have been through huge swings in dairy price volatility and we now, it seems, have commentators urging milk buyers to drop prices.

“NFU Cymru is continuing to call for better dairy market signals as milk price cuts, as recognised by the commentators themselves, don’t work, partly because the impact is too late and too slow in achieving its ultimate aim.

"We are therefore repeating our call on government, both at a UK and Welsh level, to ensure that market data is collected, audited and published to give dairy farmers the right signals as to what’s happening in the market – both on price discovery and demand.

"This is already done in other parts of the world, and should be the starting point for dairy risk management mechanisms in Wales and the UK."

Mr Richards added: “It’s telling that on milk volume notifications, Defra and AHDB Dairy are in disagreement on recent milk production, with Defra’s monthly volumes well below the daily delivery figures collected by AHDB.

"The discrepancy has meant that Defra have not published recent UK milk volume figures and the data for August and September is being investigated and subject to change.

“Up to date, accurate figures on price volume and demand are essential moving forward.

"Farmers having to base their future milk production plans on inaccurate or incomplete data or industry commentators, as there is no alternative, is extremely concerning and damaging to the industry and we urge government to step up to ensure better transparency in the dairy markets.”