Top Welsh dairy offers incentives for farmers to go organic

A leading Welsh organic dairy is looking to increase its output by offering financial incentives for farmers to switch to organic milk production.

Launched in 2000 by four farmers, the Carmarthenshire-based Calon Wen Organic Milk Co-operative has grown to become one of the UK’s leading organic brands with a group turnover of approximately £12.5 million.

The company produces the popular Calon Wen branded milk, butter, and cheese, which are sold in shops and supermarkets chains across England and Wales.

Calon Wen is forecasting a minimum flat rate price for farmers of 50ppl for 2025/2026 with no seasonality deductions and is looking to recruit established organic producers and farmers considering converting to organic dairying.

The co-operative currently has 25 organic dairy farmer members spread throughout Wales, producing around 20 million litres of milk annually.

Regenerative

Managing Director Dai Miles, who is also a dairy framer, said, “We take a regenerative organic approach that focuses on soil health and the full farm ecosystem. Therefore, as we approach our 25th anniversary, we are very confident in the future of organic dairy farming and buoyed by consumer demand for organic dairy products.

“As a business, we have to plan for the future. Many of our members are now second-generation organic farmers, but others are looking to retire, and therefore, there is an opportunity for new recruits to the co-operative – whether established organic farmers or those looking to convert – to keep our loyal consumers well- serviced with Calon Wen’s organic milk and dairy products.

In addition to the financial and environmental benefits of organic production, Calon Wen says its membership expansion is also an opportunity for new entrants to farming to get a foothold in the industry.

Also, the company believes converting to organic production could solve many farmers concerns about complying with strict NVZ regulations.

Incentives

As part of its recruitment drive, Calon Wen is offering incentives to farmers including an in-conversion loan scheme for recruits, and also an incentive for members who successfully recruit a new farm.

Mr Miles added: “We understand some farmers may be concerned about the cost of converting to organic production – especially as there isn’t currently any government support available. Therefore, Calon Wen will offer them an interest-free loan of 2p per litre towards the cost of their last year of conversion, with the loan to be paid back during the first two years of production.

“Furthermore, Calon Wen is committed to supporting our members through the conversion process. We are offering our extensive agricultural expertise and in-depth knowledge of the organic sector to make the necessary changes as easy and seamless as possible for our farmers.”

Although it is a predominantly Welsh-focused business, Calon Wen recruits members on the English border and supplies processors and retailers in Wales and England.

The company’s primary target areas are in west and north Wales, but Calon Wen would also like to hear from potential members and groups of farmers in England.

Farmers who would like to know more about the benefits of converting to organic dairy production can find expert advice and information by visiting the Calon Wen at the forthcoming Royal Welsh Show (July 22-25 th ), in Llanelwedd.