Dairy farmers threaten new round of milk protests

Dairy farmers are threatening a new wave of protests after accusing processors and retailers of failing to offer a fair share of the recent uplift in milk prices.

UK milk production is almost 11% lower now than in the same period last year, leaving the majority of milk purchasers short of supplies and spot prices for milk surging to about 30p/litre.

However, most producers are still receiving an unsustainable milk price of about 20p/litre.

See also: EU could pay dairy farmers 12p/litre to cut production

Processors and retailers appear to be “holding back” on delivering fairer returns to dairy farmers, which was “unacceptable”, according to David Handley, chairman of dairy lobby group Farmers For Action (FFA).

“Unless we see urgent change we will have no option but to take our protests to the doors of those retailers and processors which are most to blame,” said Mr Handley.

The Tenant Farmers Association (TFA) agreed that dairy farmers, who had struggled with 24 months of unsustainable milk prices, below the cost of production, must be given fairer returns immediately.

‘On a knife-edge’

TFA national chairman Stephen Wyrill said: “I think there is a real chance of protests if the processors and retailers fail to see the light of day from a dairy farmer’s point of view.

“If milk prices don’t start to rise, it could be a desperate winter, with feed prices rising, late BPS payments and bills to be paid.

“Dairy farmers are on a knife-edge. The industry is being exploited.”

Mr Wyrill, who is a dairy farmer and county council farm tenant in North Yorkshire, currently supplies Wensleydale Creamery, which pays him 21p/litre for his milk.

He believes the government should give groceries code adjudicator Christine Tacon powers to report on the share of the retail price of milk received by each level of the supply chain.

“This price information would inform contractual negotiations between farmers, processors and retailers,” he said.

“The general public has held their corner on milk. But there is too much money being made out of milk by the processors and retailers. It’s about time they shared some of the pain.”

NFU Scotland

North of the border, NFU Scotland (NFUS) is contacting all milk purchasers, calling for them to immediately lift prices to producers on the back of a rapidly changing marketplace.

NFUS milk committee chairman Graeme Kilpatrick said: “There is every justification for all milk buyers to be increasing prices right now by several pennies a litre and not just the fractions of pennies we have seen to date.”