Dairy farmers protest against price cuts

Farmers are to meet at a dairy summit in central London, which will consider what actions are needed to bring about a sustainable dairy supply chain following a series of price cuts.

The warnings come after three of the UK’s major dairy suppliers – Robert Wiseman Dairies, Arla Foods UK and Dairy Crest – announced cuts to the prices they pay to farmers for their milk of between 1.65p and 2p per litre.

The dairy processors have blamed the deterioration in commodity markets and cream prices for their decision to further cut prices, which farmers argue are already rock bottom.

The cuts, which follow similar reductions in recent months, will leave some dairy farmers earning 4p per litre less than last year.

‘Significant loss’

The latest round of price cuts are another blow to dairy farmers who have been hit by a combination of high rainfall, which means they have to keep cattle more expensively indoors, and rapidly rising feed prices.

Summit organiser, the National Farmers Union has said that many dairy farmers are already making a “significant loss” for the milk they produce.

The NFU has insisted that there is a window of opportunity between now and 1 August to try and restore all milk price cuts imposed on farmers since 1 April.

This will provide an opportunity to talk about wholesale changes to the sector that ensure that dairy farmers are not paid a price below the cost of production for their milk secure the future of the industry.

The food minister Jim Paice is expected to join representatives from the dairy sector at the summit.

Half of the milk that British farmers produce ends up as liquid milk in bottles and cartons. Some of that is sold in supermarkets, while the rest is sold by convenience stores, door-to-door or used in catering, schools and prisons.

Government procurement

The British Retail Consortium has argued that dairy processors, manufacturers and the public sector should be held accountable in the same way retailers are, with the government setting an example over its own procurement.

The body, which represents major retailers, said contracts between retailers and their dairy processors are overseen by the Groceries Supply Code of Practice and argued that retailers choose to go further, ensuring the price paid to farmers in their supply chains supports their businesses.

British Retail Consortium food director, Andrew Opie said: “Supermarkets are the best payers in the milk market. The pressure should be on other big buyers of milk – food manufacturers and the public sector – to show the same strong support for the industry that retailers do.

“The truth is, the farmers in the best position are often those in supermarket supply chains.”