FUW URGES SUPPORT FOR DAIRY INDUSTRY AFTER JOBS AND PRICE BOMBSHELL

The Farmers' Union of Wales today called for increased support for the dairy industry following the announcement of wide-scale restructuring plans by the Dairy Farmers of Britain (DFB) co-operative.

The union's milk and dairy produce committee chairman Eifion Huws expressed bitter disappointment after the co-operative announced the proposed closure of two dairies in Staffordshire and Hampshire and a 2p per litre (ppl) reduction in milk prices to farmers back-dated to November 1.

"This is devastating news for all members of DFB and many will feel extreme anger at those who have been spreading malicious rumours which may have contributed to this situation.

"For some members the big reduction in milk price could be the last straw and the possible loss of 640 jobs would strike a major blow for their families."

DFB also propose ro rationalise distribution depots at Portsmouth, Cheshunt, Leeds and Lincoln and reduce "corporate headcount" at its offices in Nantwich and Blaydon.

The move makes DFB the first company to drop its price below 25ppl following a long overdue period of relative buoyancy in the milk market.

"It is vitally important that processors and supermarkets stand by the industry at this difficult time and do not let DFB's difficulties trigger a downward spiral," Mr Huws added.

"I firmly believe the Government should take urgent action to prevent this happening in order to secure jobs in the farming and processing industries. They have given tens of billions of taxpayers' money to the banks in order to promote fluidity.

"This is not happening and DFB's proposed restructuring is the sort of outcome that results from their apparent inactivity."