Last week's Royal Welsh Show was, as usual, one of the highlights of my summer calendar. I always enjoy catching up with farmers in what is the biggest event of its kind in Europe. This year, I was delighted to welcome a top official from the European Commission to Builth Wells. He took the opportunity to announce a £7 million scheme for promoting Welsh lamb. This is fantastic news for Welsh farmers and the Welsh economy.
After a busy term in which the European Parliament adopted its position on the Common Agricultural Policy's reform and adopted a law on country of origin labelling for fresh meat, we are now on recess until the end of August. Just before the summer break began, the Parliament's Agriculture Committee voted on new laws on the dairy industry. After the milk crisis of 2009, after prices and farmers' incomes had fallen dramatically in 2008 - the industry remains in trouble, with six or seven dairy producers leaving the sector each month in Wales.
The main problem is that farmers have not been getting the price they deserve for the milk they produce for far too long. While the EU average is 30 pence per litre, Welsh farmers get 26 pence per litre for their milk on average. Italian dairy farmers receive 35 pence per litre. The market here in Wales currently favours the large supermarkets who can often dictate the price and the terms. A solution is urgently needed, especially considering that milk quotas are set to be abolished in 2015.
I visited Ty Tanglwyst near Bridgend last month, and heard from farmer John Lougher about the difficulties facing the Welsh dairy industry. John told me that the relationship between farmers and those that buy the milk must be improved. He believed that the dairy proposals are an opportunity to make the milk supply chain fairer.
The proposal from the European Commission was for a new law to introduce voluntary contracts. But from the beginning of the discussions, I have been campaigning for the contracts to be made compulsory. I submitted an amendment to the report and was glad to see mandatory contracts adopted in the committee vote. It was also passed that the contract must be set in advance, be in writing and include a fixed price, volume and duration. Organisations would be allowed to negotiate contracts on behalf of its members. The full Parliament will now vote on the package in October and I hope that the good result achieved in the Agriculture Committee will be maintained.
Additionally to these proposals, there must be a stronger pressure on the supermarkets to play their part in addressing the growing crisis in the Welsh milk industry, by paying a fair price for the product. Plaid Cymru has welcomed the creation of a Supermarket Ombudsman by the Westminster government, but this role must have real powers to intervene, for example with unfair milk prices. We have long campaigned for such an ombudsman and hope now that progress can be made to help our farmers and rural communities.
Ty Tanglwyst farm has diversified and now runs a milk round catering for local shops. I would like to see the Welsh government offering support to others across the country who may wish to expand into other services.
I see my purpose as an MEP to get the best deal for all our communities in Wales. Hopefully, we are now moving forward in getting fairness for our dairy farmers.
Diwedd/Ends
