THE GOVERNMENT is failing dairy producers by not applying more pressure on supermarkets to account for the differential between shop and farm gate prices, claims Shadow Secretary of State for Food, Rural Affairs and Transport, Tim Yeo.

Speaking at the Dairy Event, which opened on Wednesday (Sept 22), Stonleigh Park Warks, Mr Yeo said: “The balance of power remains tilted too far towards the supermarkets and the government should apply more pressure such as using the National Audit Office to act as an external auditor of milk price deals to provide more transparency.”

It should also facilitate more vertical integration to help producers gain a fairer share of the profits for liquid milk and processed milk products.