Milk price cuts will lead to action

DAIRY FARMERS are worried that milk prices will be cut as a consequence of last week‘s (w/e Aug 27) reshuffle between the major supermarkets and dairy processors.

Arla Foods has already cut its milk price by 0.4p/l, and some farmers see this as the beginning of a new round of price cuts from the dairy companies.

Both Farmers for Action and the NFU are keeping a very close eye on the situation.

They appear to agree that something has to be done if the dairy companies announce cuts in the prices to the primary producers.

“We will give it a week to let the dust settle,” FFA chairman David Handley told FARMERS WEEKLY.

“But if any of the processors start talking about further price cuts, we will take action, and this time the FFA even has the backing of the NFU.” 

Mr Handley said that any direct action would be aimed at the retailers.

“It‘s the retailers who are responsible for this new situation, so we will target them,” Mr Handley said.

Gwyn Jones, the NFU‘s dairy board chairman, said: “There is no excuse for any further price cuts. We now expect stability right through to next year.”

Mr Jones added that he would be seeking assurances from the dairy companies on prices in the coming days