Dairy ... Milk
Milk Price

Scotland ... ‘No excuse’ for stall in milk prices says NFU as it calls for struggling dairy farmers to be paid 30ppl minimum

Burgess COMMENTARY

Peter Burgess

‘No excuse’ for stall in milk prices says NFU as it calls for struggling dairy farmers to be paid 30ppl minimum

MILK processors across the UK have no excuse for not paying dairy farmers a minimum of 30p per litre, NFU Scotland has warned.

With that failure in mind, the union has called for the formation of a dairy producer organisation in order that farmers can be legally represented in any future disputes they may have with their buyers.

Autumn 2014 was the last time the milk price rose to 30ppl in Scotland for non-aligned dairy farmers, but this now looks set to change, with the starting gun for a price rebound fired by one company, English-based family cheese company Barbers, which has committed to increase its milk price to above 30p by February.

The Lancashire-based Yew Tree Dairy at Skelmersdale, which processes Scottish milk, is also offering favourable fixed-term price options.

NFU Scotland has welcomed these initiatives, but is now calling for more commitment from the bigger milk processors in Scotland, and those who buy Scottish milk, who are failing to react to this rising market.

Union milk committee chairman Graeme Kilpatrick said: “Farmers have suffered serious losses and inevitably milk production is in serious decline, which will not be reversed quickly. Objective and informed market analysts are now confident that the value in dairy products will continue to rise into 2017.

“There is no excuse for the supply chain to continue to delay price increases to producers. The time lag has been long enough and it is unforgivable and grossly irresponsible to delay commitments to price increases any longer. NFU Scotland urges all processors to commit to price increases now and in the months ahead.”

The union urged the supply chain to reflect on the damage being done by the cycle of ‘boom and bust’.

“We need contracts and pricing models that are proactive, collaborative and agreed rather than imposed by processors with no thought to long-term efficiency and sustainability of supply,” said Mr Kilpatrick

“NFU Scotland strongly believes that farmers and processors must recognise the huge benefits which effective producer representation can deliver.

“This, we believe, needs to be a priority and there should be no half measures. We believe a registered Dairy Producer Organisation is necessary for farmers to be represented legally.”