The Farmers’ Union of Wales has warned of a desperate need for improved farmgate returns given low farm incomes and the uncertainty facing the industry over the coming years.

Speaking in response to falling cattle prices, FUW livestock, wool and marts committee chairman Dafydd Roberts, said: “Last year saw prices fall by 15 percent between January and July, and current prices have fallen to around five percent below what they were this time last year. If prices follow last year’s trend it will have a severe impact on the sector.”

Mr Roberts said all sectors in Wales were facing major challenges, highlighting a fall in farm business incomes of around 40 percent over the past five years, with a 20 to 25 percent fall over the past year alone.

“On top of this we now face a period of extreme uncertainty due to the changes to the payment regime and the likelihood of delayed payments over the next twelve months,” he added.

Mr Roberts said supermarkets and other key players in the supply chain needed to demonstrate awareness of the challenges facing agricultural and the risks of failing to ensure fair farmgate returns.

“Despite consumer support for British agriculture, poor profitability has hit cattle numbers in particular, with numbers down 20 percent in Wales compared with a decade ago.

“Action needs to be taken to show solid commitment to Welsh and British agriculture in order to protect supplies. Otherwise unacceptably low farm incomes and the financial uncertainties facing us over the next twelve months will have an impact on the supply chain as a whole, with a major knock-on effect for rural economies,” added Mr Roberts.