With production plummeting, commodity prices rising and spot prices for milk over 31p per litre, milk giant Müller has been slammed for holding milk prices static for September.
NFU Scotland yesterday said that after almost two years of unprecedented turmoil in the dairy sector, milk markets were eventually emerging from the downturn with some strong positive signals.
The union said that in stark contrast to this trend, the decision by Müller to hold its September milk price to its farmer suppliers who were not on a supermarket contract had caused anger, disappointment and frustration.
Milk committee chairman Graeme Kilpatrick, who had spoken to the company, said: “This decision to ignore market signals is a slap in the face for non-aligned producers who have endured two years of falling prices and were looking to their buyer for a confidence boost.
“Müller’s response to our enquiries shows that sadly, once again, we are into a blame game where processors claim they need to be competitive and cite other processors for not increasing their prices.”
He said this was a sad reflection that lessons of the past had not been learned and stated that milk prices which were quick to fall were proving to be too slow in responding when the market turns and producers were once again left carrying the can.
“NFU Scotland believes that must not happen this time around,” he said. “There is an unequivocal case for the whole dairy market to lift – from retail prices through wholesale commodity prices and all the way back to the farmgate.”