Public sector support for Welsh milk falls

SUPPLIES of Welsh milk sold to the public sector have dropped by 22 per cent, according to latest research figures described by Mansel Raymond, NFU Cymru’s milk board chairman, as ‘alarming’.

Wynfford James, head of the Welsh Assembly Government’s food, fisheries and market development department, told NFU board members that the total spent on food and drink by the public sector in 2007 was £66.49 million.

Of this Welsh food and drink producers from a supply perspective could provide £30.3 million of that total spend - but at the moment were only able to access £14.7 million of the public sector market place.

He said his department had identified ‘substantial’ opportunities for producers of Welsh fruit and vegetables to supply the public sector but that there had also been a ‘significant’ drop in fresh Welsh milk supplies - down by 22 per cent since 2005.

Public sector procurement policies and structures are said to be to blame in the main with many bodies favouring a ‘consortium’ approach, making it difficult for smaller, Welsh-based suppliers to bid for and win contracts.

Responding to the Assembly’s tracking studies Mr Raymond said he was ‘very alarmed’ by the drop in Welsh milk being purchased by the public sector.

“The Welsh dairy industry is in decline and the sector needing the most support at the moment,” he said.

“Our industry is going through real tough times and while public procurement contracts are a small part in a much bigger picture every little helps so it is incumbent on the Assembly and other public bodies to do much better.”

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