The government and consumers are being encouraged to back Welsh dairy farming as figures show a rising number of farmers choosing to exit the sector.
At the Welsh Dairy Show held today (22 October), NFU Cymru said the sector was in dire need of a 'confidence boost'.
Figures from AHDB show that over the last five years, 17% of dairy farmers in Wales have chosen to exit the industry.
There are numerous reasons for this, including continued market volatility, uncertainty about future policy and rising costs.
The combined cost of complying with environmental regulation and the pressures of bovine TB have also been highlighted as factors.
NFU Cymru warned that these impacts had been 'felt acutely' by the nation's dairy producers.
The union's dairy board chairman, Jonathan Wilkinson said: “Dairy farmers are struggling to find the confidence to make the decisions necessary to drive their businesses forward.
"Farmers are being asked to make significant capital investment in their farm to comply with environmental legislation and at the same time, are continuing to battle the devastating impacts of bovine TB.
"This is against the backdrop of uncertainty as dairy farmers in Wales continue to question if the proposed SFS scheme will be an attractive and viable option for the sector.
"In addition, high interest rates and rising input costs lie heavily on farm balance sheets, restricting cash flow and limiting the ability of farmers to make the necessary investment."
Against this backdrop of uncertainty, over 280 dairy farms in Wales have turned off their milking parlours over the last five years, according to figures.
This is despite the sector being worth over £850m to the Welsh economy, accounting for almost half (47%) of the gross output of Welsh agricultural production.
"To ensure the next generation of Welsh dairy farmers have a prosperous future, the sector must have the confidence to invest in the here and now," Mr Wilkinson said.
"This is why we are encouraging consumers to back our Welsh dairy farmers by looking for the Welsh flag when they are shopping or enjoying dairy products out of the home.
"We also urge our government to address the challenges we face and to listen to the dairy industry to safeguard the continued production of quality, nutritious and climate friendly milk."
