Union warns of multiple threats for dairy sector as farm gate prices fall

NFU Cymru is highlighting the multitude of challenging factors causing significant uncertainty for dairy farming businesses in Wales at the annual Welsh Dairy Show.

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The union says the cumulative impact of the varied difficulties facing Welsh dairy farming businesses has led to forecasts of a challenging short-term future for many in the sector.

Among the issues putting pressure on the dairy sector are the impacts of a long, dry summer; multiple animal disease threats; the continued financial fears caused by the UK Government's proposed changes to inheritance tax; the costs and stocking pressures of complying with Welsh Government's water quality regulations; and the transition beginning on the 1st January from the Basic Payment Scheme (BPS) to the Sustainable Farming Scheme (SFS), all against the backdrop of a volatile market and recent farm gate milk price drops.