PEMBROKESHIRE dairy producers say the recent cuts in the retail price of liquid milk is putting huge pressure on the viability of their businesses.

This message was delivered to local MP Nick Ainger during a recent visit to Poyerston Farm, Milton.

The dairy unit, farmed by Philip and Sheila Lewis in partnership with their son and daughter-in-law, Roger and Sarah, milks 200 cows on a high input/high output system.

The family has sold off its beef enterprise and now hopes to expand the dairy unit to maximise efficiency.

Roger told Nick Ainger that spiralling fuel costs had been a financial burden on the business. "Farming in Pembrokeshire means that fuel costs will always have a significant effect on our profitability because of the distance we are from major centres of population, our main customer base," he said.

"The cost of inputs such as fertiliser has also increased significantly because of high energy costs. This, together with the high fuel price, will mean it will cost us a lot more this year to conserve fodder for the cows this winter."

This had not been helped by the budget announcement to increase duty on agricultural diesel, he added. "Yet, because of the downward pressure on retail price, our milk price was cut by .5ppl on April 1st," said Roger.

Letterston dairy farmer and chairman of the NFU Cymru Milk Board, Mansel Raymond, told the MP that after 18 months of relatively stable milk prices and market signals pointing to a price rise, the morale of Pembrokeshire farmers had been "hit for six" as a result of recent price cuts.

He said: "While we all want to see the consumer getting a fair deal for the food they buy, once again we as farmers are having to bear the costs of retail price wars.

"It is high time that the Office of Fair Trading looked at the whole supply chain and looked at fair trade for farmers as well."