February marks the start of ‘FebruDairy’ – a month-long campaign that offers an opportunity to celebrate our dairy sector, the families and communities behind it, and the high-quality produce that continues to come from our farms.

This year, however, the campaign comes at a particularly challenging time. Dairy farmers across Wales are facing heightened volatility and uncertainty, driven by a sharp fall in milk prices over recent months. While production costs remain high, the value of milk at the farm gate has dropped dramatically, leaving many producers in an increasingly untenable position.

To better understand the scale of the challenge, the Farmers’ Union of Wales recently launched a consultation with our Animal Health and Dairy Committee members to capture the real-world impacts of falling dairy prices. Initial responses paint a stark picture. On average, respondents report that the price they receive for their milk has fallen from around 42 pence per litre in September 2025 to around 34.4 pence per litre by December 2025 – a drop of over 7.6 pence per litre in just three months - with the trend continuing into 2026.

While the figures and realities will vary from farm to farm, it does paint a worrying picture. A previous Kite Consulting report estimated average dairy production costs at between 39 and 44 pence per litre. This means that many Welsh dairy farms are currently producing milk at a significant loss, with the typical business likely losing thousands of pounds each month simply to keep operating.

These are predominantly family-run farms that have invested heavily in new infrastructure in recent years – not only to improve efficiency and animal welfare, but also to comply with evolving regulatory requirements. Reductions in milk prices of this scale will severely impact the ability of these businesses to meet their financial commitments and make repayments as planned.

This situation is not sustainable. Over recent months, FUW has consistently raised these concerns with the Welsh Government, making it clear that without meaningful action to address market volatility and strengthen the position of dairy producers within the supply chain, many dairy farms in Wales may struggle to see out the coming months.

That is why FebruDairy matters more than ever. It is a chance to recognise the vital role dairy farmers play; not only as food producers, but as key employers and contributors to local economies. It is also an opportunity for consumers, retailers and policymakers alike to reflect on the true value of Welsh dairy produce and the people behind it.