The need for better market data on dairy prices and volumes have "never clearer" as many farmers face price cuts as they go into 2018.
Many dairy producers are facing a milk price cut, and these cuts will impact on those farmers paid on a basket pricing mechanism in particular, according to NFU Cymru.
While the farming union states that it recognises that this may not be the case for all processors, with a number of dairy companies choosing to hold their prices for January, news of price cuts will be of concern to dairy farmers across the UK.
First Milk has held its milk price for January despite downward pressure in market which has seen others reduce their price.
That contrasts with the decision of dairy giant Muller, which has slashed its milk price to its farmers by a hefty 1.5p per litre, sparking fury in its producers.
Arla’s price for UK farmer owners will reduce by 1.3p per litre, taking it to 31ppl pence from 1 January 2018.
Meadow Foods will also be decreasing its 'A' milk price by 1.25 pence per litre to 29.75ppl from January 2018.
'New market crash'
Gareth Richards, Chairman of NFU Cymru’s Milk Board, explained talks of a new market crash is "extremely concerning".
“What is extremely concerning and irresponsible at the moment is the unsubstantiated sentiment from various industry commentators, who have been talking the market - if we are not careful - into a new market crash,” Mr Richards explained.
“Dairy farmers have been through huge swings in dairy price volatility and we now, it seems, have commentators urging milk buyers to drop prices.”
NFU Cymru is continuing to call for better dairy market signals. It said milk price cuts "don’t work" partly because the impact is "too late and too slow in achieving its ultimate aim".
The union has urged government to ensure that market data is collected, audited and published to give dairy farmers the right signals as to what’s happening in the market – both on price discovery and demand.
Such a system is already done in other parts of the world. NFU Cymru said this should be the starting point for dairy risk management mechanisms in the UK.
'Discrepancy'
Mr Richards continued: “It’s telling that on milk volume notifications Defra and AHDB Dairy are in disagreement on recent milk production with Defra’s monthly volumes well below the daily delivery figures collected by AHDB.
“The discrepancy has meant that Defra have not published recent UK milk volume figures and the data for August and September is being investigated and subject to change.
He said up to date, accurate figures on price volume and demand are essential moving forward.
“Farmers having to base their future milk production plans on inaccurate or incomplete data or industry commentators, as there is no alternative, is extremely concerning and damaging to the industry and we urge government to step up to ensure better transparency in the dairy markets.”
