Three dairy farmers a day quit the industry, Kendall tells NFU AGM

Milk price has been screwed down to the point where three dairy farmers a day are exiting the industry, NFU president Peter Kendall has warned.

Speaking at the NFU’s annual conference he warned that the dairy industry was in meltdown and action was needed by retailers now.

“I am becoming increasingly frustrated that large retailers are simplistically peddling ‘supply and demand’ economics as the cause of our crisis in the milk sector, he said.

“We are not manufacturing nuts and bolts; production cannot be turned on and off at the touch of a switch.

“I was in Norfolk last week where I was told of a local agent with 10 dairy herds for sale. This is being repeated around the UK.”

Justin King, chief executive of Sainsbury’s told the conference that the company could not buck the market and the price paid for milk must be based on the market place. “At Sainsbury’s we cannot prop up inefficient businesses.”

But he announced that his company would pay a premium to the 450 farmers in its dairy development group if they delivered additional benefits that were valued by farmers.

Mr King also called for farmers who felt that they were being mistreated by the large retailers to come forward and give evidence to the Competition Commission.

“I am happy to support the Competition Commission in its call for evidence because sooner or later we are going to have to conclude that the lack of evidence is evidence of a really malign force – which I simply don’t believe is the case – or in fact there is little evidence that supermarkets are doing little else than trying to do the right thing for consumers, which is what we are in business to do.”

DEFRA secretary David Miliband also called for more farmers to come forward if they had evidence about abuse of power about the retailers.

“If people have got complaints now is the time to out it. The Competition Commission has said very clearly that it respects confidentiality and I appeal for them come forward.”