NFU Cymru has welcomed news that Welsh dairy farmers hardest hit by the effects of the Covid-19 outbreak will imminently have access to financial support from Welsh Government.
NFU Cymru commends Welsh Government’s recognition of the severity of the issues facing the Welsh dairy sector, but has expressed its concerns for those dairy farmers whose businesses may not meet the eligibility threshold for the scheme but have, nonetheless, been severely impacted as the Coronavirus crisis has unfolded.
NFU Cymru Dairy Board Chair Abi Reader said: “Today we received the important news that dairy farmers in Wales will shortly have access to this much-needed support from Welsh Government. This news comes on the back of the earlier announcement from the Minister for Environment, Energy and Rural Affairs, which NFU Cymru welcomed last month, and follows significant work from NFU Cymru in gathering substantial evidence of the depth of the crisis facing our sector. The scheme will shortly open for applications and the Minister has confirmed that once the necessary documentation has been submitted and validated that payments will be made within 10 days. Given the severe and immediate financial impact the overnight closure of the food service sector had on dairy farmers supplying processors to these markets, it is imperative that we make the application process as efficient as possible and I very much hope that validation and payment can be made without delay.
“It is vital that this support gets to those producers hardest hit by the loss of markets as a result of Covid- 19. When the Minister announced the scheme last month, she confirmed that the eligibility criteria would cover those dairy farmers who had lost 25% of their income in April and subsequently May. Welsh Government has subsequently amended the eligibility to a scheme based on a 25% reduction of milk price rather than income. While on the face of it this may not appear significant, it potentially has implications for farmers who have had to reduce the amount of milk they supply to their processor as a result of the exceptional market conditions.
“I am concerned that the revised criteria may not fit in with the actual events that have happened on farm this April and May. As the scheme is rolled out we will be monitoring the situation closely and feeding in our views directly to the Minister and to her officials through the Dairy Focus Group. I am sure we all want to make sure that those impacted most get the support they need at this time.
“The pandemic has caused massive supply chain disruption and it will be a long time before we see our cafes, restaurants, coffee houses and hospitality venues return to normality. It is important that the whole supply chain, AHDB and our governments across the UK continue to work together to support the industry at this difficult time and make sure we continue to stimulate demand for great tasting nutritious dairy products packed full of vitamins and minerals and a great source of calcium.”