NFU meeting raises questions and protests

The National Farmers Union in the UK will back any plans to demonstrate peacefully outside processors and retailers involved in the latest round of cuts, the union says. The call comes after around 2,500 dairy farmers packed out Central Hall Westminster in London in a rally call, in the wake of price cuts by processors which NFU deputy president Meurig Raymond described as,  “Not only being cuts to the bone, but the latest round of price cuts will put farmers into a loss-making situation.” The summit was filled with dairy farmers not only from England and Wales, but delegates from Scotland and Northern Ireland as well.
Raymond further said, ”The price cuts must be rescinded by August 1, and if this doesn’t happen, then we will support and facilitate targeted demonstrations outside processors and retailers. We will also mobilise the public with a concerted consumer campaign to help them understand the crisis facing the dairy industry and we will be asking them for their support with this campaign.
“All this co-ordinated action will be designed to put pressure and bring shame on the retailers and processors who have caused this crisis in the British dairy industry.
“We are still hopeful of agreement on a voluntary code of best practice in contracts, to bring some balance to the relationship between farmers and processors, but before long we have to ramp up our lobbying of Parliament to introduce statutory powers.”

Agriculture Minister Jim Paice also attended, despite some booing and heckling when he asked farmers whether they had done everything they could to reduce costs. He noted that voluntary agreements are very close to being finalised between  processors and farmers, and says that the code of practice would “build up the trust again that’s been lost between the parties in the dairy supply chain. We are tantalisingly close, it’s down to a few words now. If we can get the code in place, it’s not the second best option, it’s the best option.” He also called on farmers in the UK to work on having more producer organisations, and said there will be money available for developing markets for producer groups from the government.

However, he warned the assembled that the government would not be fixing prices. “I know there are some here who would like me to fix prices like the old days of the Milk Marketing Board, but those days are not coming back.” Paice also issued a challenge to processors: “Why not grow demand rather than constantly battling over bottling? Where do they expect their dairy products to come from if you guys go out of business?”
In the last two weeks Robert Wiseman Dairies, owned by Müller Dairies, Arla Foods UK, the UK subsidiary of Arla Foods Amba and Dairy Crest, announced cuts to their milk prices paid to farmers as of August 1 of 1.7ppl, 2.0ppl and 1.65ppl respectively, following further significant cuts in recent months.

One farmer noted that there has been a perfect storm of bad weather conditions, low prices and rising farm inputs. “Farmers can’t and will not produce with these differences in price,” he stated. “We have to sort the problem out now.”