First Milk, who are responsible for purchasing approximately 25% of the milk produced in Wales, this morning wrote to their members to inform them they are also increasing levy contributions and recouping extra capital from farmers at a time when they are already under huge financial pressure.

Rebecca Evans said;

"This is clearly disappointing news and a further blow for Welsh dairy farmers who are already suffering from recent cuts to milk prices. I have requested a meeting with First Milk to discuss this issue as a matter of urgency.

"I recently commissioned an independent review of the dairy industry in Wales which will report shortly with recommendations on how Welsh Government can work together with farmers to ensure a profitable and sustainable future for this important sector.

"The Welsh Government continues to explore how resilience can be increased in the Welsh dairy supply chain. We are also considering how we may increase processing capacity in Wales, but also a range of other measures relating to product development and marketing, which will be of benefit to our dairy farmers.

"I have also requested urgent input from my Dairy Task Force on this matter."

In November last year, the Deputy Minister appointed Andy Richardson to lead the dairy review which will draw on the work already undertaken by the Dairy Task Force and take views from all in the Welsh supply chain.

The review will consider what support the Rural Development Programme 2014 - 2020 may provide to dairy farmers and the milk processing sector and address the specific issues that relate to milk price volatility and consider whether there are mechanisms (legal and voluntary) that could give a more stable farm gate milk price.

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