Pembrokeshire dairy farmer Mansel Raymond says the £75 million acquisition of Associated Co-operative Creameries (ACC) by farmer-owned Dairy Farmers of Britain is a positive step towards getting farmers closer to their market.

Mr Raymond, chairman of NFU Cymru's Milk Board, last week addressed NFU members on a number of issues affecting the dairy industry, both nationally and on a local level.

He regarded the ACC takeover as a means of alleviating the loss and gain factor suffered by some dairy processors.

It was among a number of recent positive developments in the dairy industry, including the creation of Dairy UK, he said.

This organisation will offer a range of professional services to its members, promote supply chain solutions and seek to lobby EU, national and regional authorities on a range of regulatory issues affecting the whole of the dairy industry.

Mr Raymond was told of a number of concerns by farmers including the Government's failure to act upon independent scientific advice that beef from animals born after August 1996 should now be permitted to re-enter the food chain after a negative test for BSE.

As a result of NFU Cymru's opposition to the proposed removal of heifers and steers from the over-30-month scheme, DEFRA had agreed to a further meeting before submitting its proposal to reduce compensation payments for heifers and steers over 30 months to the EC, he added.