UK – Major retailers recognise the difficulties of dairy farmers and are ready to accept an increase in the wholesale price of cheese following the upward movement in dairy markets this year.

That is the view of John Duncan, chief executive of UK dairy co-op First Milk. Negotiations are continuing with processors over milk prices supplied from October 1, and Duncan stressed that increased returns from the retail sector would be expected to be passed back to farmers.

He spoke to over 20 retailers and said: “All have recognised the market logic supporting an increase in the cheese price. This is desperately needed to trigger a meaningful improvement in farmgate milk prices, which remain below the majority of dairy farmers’ costs of production.”