Milk price rise too slow

ARLA FOODS UK has announced it will not be increasing milk prices for April and Robert Wiseman Dairies is only likely to pay an extra 0.1p/litre.

Farming organisations had been hoping that the two processors would add to their March increases to more closely reflect the extra 1.5p/litre being charged to customers by many retailers.

The hike was aimed at covering farmers’ increased costs, but so far Arla has only increased its payments by 0.75p/litre and Wiseman by 0.91p/litre.

Both companies insisted they were passing back all they had received from the market, but Tom Hind, NFU chief dairy adviser said people were beginning to have their doubts.

“I am appalled. This is a kick in the teeth for all the lobbying we’ve done.”

NFU dairy board chairman Gwyn Jones said he could see serious trouble ahead. “One way or other pressure will be made to bear.”

David Handley of Farmers for Action said his members were on the verge of taking direct action.

Jonathan Ovens, chairman of direct supply group Arla Foods Milk Partnership, said he had not ruled out an increase for May milk and that there would definitely not be a decrease.

A Wiseman spokesman said it hoped to maintain prices.