Market indications all point to the fact that farm gate prices for milk should be rising, according to Mansel Raymond, Chairman of NFU Cymru's Milk Board, which is why NFU Cymru has expressed its bitter disappointment with Dansco for dropping their milk price by 0.45pence per litre.
Mr Raymond said, "The sums just don't add up. The commodity market is strengthening, sterling is weakening against the Euro and there is low milk production. This should equal a rise in farm gate prices but instead they are dropping.
"I am bitterly disappointed that this has happened without any justification. This will add to the intolerable burden on the milk supplier," added Mr Raymond, a dairy farmer from Pembrokeshire.
"With CAP Reform and the onset of the Single Farm Payment dairy farmers across Wales are having to take some tough decisions about their future within the industry and whether they can produce milk profitably with the current returns from the market place. This news will further undermine confidence and make producers question the commitment of buyers to the milk industry in Wales."
