Emergency meeting highlights scale of crisis
The FUW convened an emergency meeting of its Animal Health & Dairy Committee last week after members reported widespread anxiety about milk prices. Farmers across Wales say they have seen drastic drops in payments this autumn, with processors now signalling further reductions into the new year.
Union officials said many producers had approached them confidentially, fearful of jeopardising contracts, but deeply concerned about projected milk payments that in some cases fall far below the cost of production.
Average milk prices are forecast at just 30–35 pence per litre, compared with production costs estimated at 39–44 pence per litre in a Kite Consulting report. That gap means the typical dairy farm could lose thousands of pounds each month if the trend continues.
Calls for government intervention
FUW leaders escalated their concerns directly to Deputy First Minister Huw Irranca‑Davies MS during a meeting in Cardiff on 3 December, stressing the need for government support to prevent long‑term damage to the Welsh dairy sector.
Gerwyn Williams, Chair of the FUW Animal Health & Dairy Committee, said:
“The speed and severity of this price drop are unprecedented. Farmers are facing an impossible situation where their input costs remain high while the value of their product plummets. The viability of many family farms is now at serious risk.”
He warned that if the situation extends into summer 2026, many businesses will be forced to shut:
“These modest sized family farms have invested heavily in infrastructure to comply with regulations and improve efficiencies, but reductions of this scale will severely impact their ability to make repayments as planned.”
Impact on rural communities
FUW Deputy President Dai Miles highlighted the wider consequences:
“Dairy farming underpins thousands of jobs in Wales and plays a vital role in the economic, social, and environmental fabric of our rural areas. When prices fall this sharply, it isn’t just farmers who suffer — local businesses, services, and entire communities feel the impact.”
He said the union has made it clear to government that immediate stability and a longer‑term resilience plan are essential.
The FUW says it will continue working with the Welsh Government, processors and supply‑chain partners to seek solutions and ensure dairy producers receive fair and sustainable prices.
