Pembrokeshire dairy farmers are making big efficiency gains and those savings must not be snatched away further up the food chain.

That was the message from Gwyn Jones, chairman of the NFU Milk Board, when he met Pembrokeshire milk producers at Pelcomb Farm, Pelcomb Bridge, on Friday.

Mr Jones referred to the Milk Development Council report which highlighted efficiency gains of between three pence per litre (ppl) and 4ppl achieved by farmers.

"It is imperative that when we make efficiency gains that that benefit isn't taken away from us. As a union we are working to prevent this happening,'' said Mr Jones.

His hosts, three generations of the Smith family, are a case in point. They are using a paddock grazing system to target high yields, currently averaging 9,300 litres, and they aim to produce that volume as efficiently as possible.

They have installed a 24/48 parlour with the intention of doubling their 250 head dairy herd by rearing their own replacements.

They think they can make further savings and cut their workload by paying contract growers to produce their maize and grain forage needs.

Mike Smith was keen to hear the opportunities available to him and other dairy producers. "We want to continue in farming and expand and make a good living out of the job,'' he said.

There was some encouraging news. Mr Jones referred to recent moves into processing by milk co-operatives and the 0.5ppl price increase to ASDA's direct suppliers, announced on Thursday.

Alan Prichard, Pembrokeshire NFU county chairman, saw these as positive developments. "The three dairy co-operatives are getting involved further up the dairy chain. Their involvement bodes well for giving farmers more control. We want more than influence, we want control,'' he said.

John Phillips, NFU Milk Committee chairman in Pembrokeshire, expressed concern at the high level of dairy imports.

Gwyn Jones admitted that these were nearly double the level of exports. But what also worried him was the disparity in the value of these products.

"We import high value yogurt and cheese and export low value skimmed milk powder, there is no future in that.

"It will take time but we must tackle this issue by putting structures in place to export high value, high quality products in the future,'' he said.