Calls grow for minimum milk price

13 March 2000



Calls grow for minimum milk price

By FWi staff

CALLS are growing for the introduction of a minimum milk price in a bid to help dairy producers survive the worst slump the sector has seen for decades.

Farmers suffering from the lowest milk prices since the 1970s would be helped if a minimum price for milk was established, believe industry experts.

Solicitors are examining the possibility of drawing up contracts guaranteeing a minimum price for farmers selling milk, said dairy consultant Paul Johnson

Milk prices paid to producers have slumped to about 15p per litre – the lowest in real terms since the 1970s, claims the National Farmers Union.

NFU president Ben Gill has described the current prices paid to farmers as “laughable”, adding to fears that hundreds of farmers could quit the industry.

Somerset farmer Derek Mead said last week that the retail price of milk should be increased by 12ppl, which should be passed directly back to producers.

But any formal agreement along those lines could fall foul of the Competition Commission because it could be alleged to be anti-competitive.