Report on action plan for dairy industry welcomed

WALES - NFU Cymru is pleased that the Environment, Planning and Countryside (EPC) committee’s recommendations to the Minister on the Strategy for the Welsh dairy industry reflect a number of the Union’s recommendations given in both written and oral evidence to the Committee.
calendar icon 15 March 2007
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Representatives from NFU Cymru, including President Dai Davies and Head of Policy for NFU Cymru, Mary James last month gave evidence to the EPC committee on the Assembly Government’s Action Plan for the dairy industry, which aims to improve levels of understanding of market trends and consumer behaviour, improve the supply chain and improve the business performance of producers and processors.

Amongst the recommendations put forward by NFU Cymru was the need for the Action Plan to focus on the larger factors influencing the supply chain, such as retailer/buyer behaviour and the importance of a competition framework that would permit the consolidation of milk processing activities, as it is these issues that will determine whether the industry in Wales sinks or swims.

NFU Cymru also advocated a root and branch review of levy spending in the Welsh Dairy sector, calling for the activities of the Dairy Development Centre (DDC) to be developed and recommended that the Assembly looks to Bord Bia in Ireland as an example of the success of an integrated approach to production and marketing across the food spectrum.

Dai Davies, NFU Cymru President said, “I welcome the EPC committee’s report to the Minister which reflects much of the evidence NFU Cymru submitted.”

“The EPC Committee’s report acknowledges our suggestions that the Minister might wish to influence the OFT to consider the production side of the dairy industry as well as consumer issues and the Committee recommends that the Minister discuss with the OFT how it might extend its dealings with the dairy industry to consider the difficulties of milk producers.”

The EPC Committee also expressed interest in NFU Cymru’s proposal for a more integrated approach in terms of the activities of the Dairy Development Centre, the Milk Development Council and the Assembly’s dairy strategy group and has recommended that the Minister investigates the feasibility of configuring a future merged dairy management body.

Dai Davies, added, “I welcome the decision of the EPC Committee today to submit these findings to the Welsh Assembly Government as part of the consultation process, and hope that following the elections the new administration will see fit to investigate these matters further.”

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