DEEPENING difficulties in the milk sector have seen Plaid Cymru calling for action from the Welsh Government.

Plaid Cymru's involvement comes after meetings with farming union representatives highlighted how a supermarket price war and a Russian trade embargo has seen global milk prices plummet.

Previously, AM Rhodri Glyn Thomas told a National Assembly debate how the number of dairy farmers in Wales had fallen by 51.3 percent since 1999.

The dairy sector is of major importance to the Welsh economy, contributing around ten percent of the UK’s total milk figure.

This week Mr Thomas and Carmarthenshire East and Dinefwr MP Jonathan Edwards have called for greater support for the industry as the milk crisis grows.

Plaid Cymru has suggested:

•The establishment of a dairy equivalent to Hybu Cig Cymru/Meat Promotion Wales to promote and market Welsh milk.

•Use Rural Development Programme funding to develop supply chains to minimise industry volatility.

•Enhancing procurement policies to better support the Welsh dairy sector.

•Encourage local production of more added value produce.

Mr Edwards met FUW representatives to discuss the crisis.

“Without any doubt we have an emerging milk crisis on our hands,” said Mr Edwards.

“Global prices are dropping with the Russian trade embargo making things considerably worse and in the domestic UK market supermarkets are in the midst of a price war which ultimately hits producers.

“Additionally, the end of milk quotas next year along with the push for increased milk production in Ireland will all impact prices here.

“Through our Shadow Agriculture Minister, Llyr Huws Griffiths is advocating a number of ways in which the Welsh Government can support the industry.

“The promotion and marketing of Welsh milk – along the lines of Meat Promotion Wales - and encouraging greater local procurement are crucial.

“Sourcing local milk and dairy products will benefit everyone.

“Additionally we must ensure supermarkets also play their part and not use the price drop to increase their margins.

“Supermarkets made a promise to support the farming industry during the horse meat scandal.

“This is an opportunity to show they are true to their word.

“This is not a short-term problem.

“The industry needs and deserves our full support.”

Mr Thomas said the crisis would be the first real test of the new team responsible for agriculture in Wales.

He said that there was a "need to strike a balance" between protecting farmers and allowing processors to respond to market conditions.

"The fact that 12 EU countries now provide for compulsory contracts suggests it should be considered again,” he said.

“This is the first test of the new team of Welsh Ministers responsible for agriculture.

“The dairy industry in Carmarthenshire and throughout Wales needs firm and swift action from the Welsh government.”