Calls for support as Mona Dairy faces collapse
30th May 2024
Mona Dairy, in Anglesey, has advised its milk suppliers that an alternative company will be processing milk for an interim period, after it failed to secure stakeholder funding.
The Farmers’ Union of Wales (FUW) has urged the Welsh government to help facilitate a positive outcome for Mona Dairy as it faces an uncertain future.
Mona Dairy’s facility is powered by renewable energy and has the potential to produce 30,000 tonnes of continental cheese a year.
It was the first in the UK to utilise electric lorries for milk collections.
In a statement, the business said it had failed to source sufficient short-term funding from its key stakeholders to keep functioning in its current form.
New ownership a possibility
‘We remain hopeful that we can secure a new outcome in the coming days and Mona Dairy will be able to continue its journey, even if that means it is under new ownership,’ the statement continued.
The processor said its main priority is to ‘secure a safe home for our 31 farmers’ and for its loyal, dedicated staff.
Staff will be kept on as long as possible as the business works through its options.
An established dairy processing company will act as interim milk buyer and take milk in the short-term.
Farmers will be paid for any milk supplied under this interim arrangement by that milk buyer.
Hard hitting loss
Brian Walters, FUW milk and dairy produce committee chair, FUW said:
“Undoubtedly, this loss will be hard hitting for both the local economy and the 31 producers that currently supply milk to Mona Dairy.”
Commenting on the challenges facing dairy farmers he added:
“Dairy farmers throughout Wales are facing an unprecedented period of uncertainty, having dealt with the difficulties of a long wet winter alongside the continuing turmoil of changes to future agricultural support and red tape.
“Compliance with the Control of Agricultural Pollution regulations and the ever tightening noose of bovine TB infections continue to bring great difficulties and extortionate costs to the sector.”
Support needed
After a weak spring flush and an improving dairy commodities market, FUW hopes that other milk processors will be able to support milk producers currently supplying Mona Dairy.
“However, for a more permanent resolution, it is hoped that a new buyer could be sought to take advantage of these innovative facilities at the site on Ynys Môn.
Given the facility’s sustainability credentials, FUW called on the Welsh Government for support in facilitating a positive outcome.
FUW members affected by the news can contact their county offices for guidance and support during this challenging time, Mr Walters concluded.
Read more livestock news.
