New data has shown that the projected income of Welsh dairy farmers is set to decrease by 40% for this financial year.

Published today by the Welsh Government, a report entitled ‘farming facts and figures’ reveals that farm incomes are forecasted to fall considerably in 2015-16.

The average income of farmers is set to fall by 16.9% - £29,500 to £24,500 – whereas the picture is doubly bleak for dairy farmers, whose income is set to drop from £70,400 to £42,000.

The report also reveals that there are 40 fewer dairy cow holdings in Wales compared to last year, with just 3,054 holdings now in operation – this has decreased by 1,336 in the last 10 years.

Although the number of farms have decreased, herd sizes have increased, which means farmers’ workloads have become more burdensome.

The dairy industry in Wales currently operates at a £1.2bn trade deficit.

Responding to the report, Welsh Conservative Deputy Leader and Shadow Spokesperson for Rural Affairs, Paul Davies AM, said:

“The magnitude of the anticipated loss in dairy farmers’ income for this year is deeply concerning.

“This is down to the dairy market’s continuing lack of equity towards farmers, who still don’t receive a fair return for their product.

“For too many years wholesale milk prices have plummeted and it’s high time the Welsh Labour Government stopped just looking into the situation and actually did something about it.

“Unless the Welsh Government takes urgent steps to ensure the long-term sustainability of dairy farming in Wales, we risk seeing this vital economic artery disappear from our rural landscape forever.

“Given the referendum result, we must now all work together to re-shape domestic agricultural policy to the benefit of dairy farmers.”