Leaders make milk price warning

FARM LEADERS have warned that attempts by some people in the dairy industry to talk down milk prices must come to an end.

The National Farmers Union, NFU Scotland and Farmers For Action have issued a joint statement which said the dairy industry must hold firm on pricing.

Farmers will not accept a price reduction based on anticipating market conditions which cannot be accurately predicted, said the statement.
The people negotiating prices should maintain their resolve and use the full arsenal of market information at their disposal to negotiate fair prices through the summer.
NFU dairy board chairman Gwyn Jones said: “Looking at the market, there seems to be no reason whatsoever for a price cut at this time. 

“Commodity markets are strong, supply is down for the time of year, and the weather has not been brilliant.”
Mr Jones said cuts to intervention prices would not occur until July and intervention had been a very small part of the overall dairy market this year.

Mature cheddar prices had also risen to over £2,400/tonne, butter prices were stable and there was no exceptional pressure on cream prices.

The statement said the three organisations wanted to deliver a culture change in the dairy industry so there was fairness, trust, transparency and dynamism.  
The language has to change. Farmers are simply not prepared to put up with the politics of mistrust that seems to pervade this industry any longer, said Mr Jones.

“Farmers want a clear signal from the rest of the supply chain that their milk supply is valued. If not, then there is absolutely no certainty of milk supply in future.”