Call for milk co-operation

Published on 28/06/2012 00:00

Amidst rumours that major milk buyers in the UK might bring in another round of price cuts at the beginning of August, chairman of the English NFU dairy board Mansel Raymond, pictured below, yesterday demanded that milk buyers worked with, rather than against, dairy farmers.

Raymond, pointing out producers faced spiralling production costs, said: “Farm gate costs of production are currently over 30p per litre (ppl) and rising. Based on feed, fuel and fertiliser cost, we estimate that average farm cost of production have risen by 0.3ppl in the last 3 months.”

In comparison, after a spell in the doldrums, world milk product prices, a trigger for the 2ppl drop in price in June, have been rising recently.

“Milk buyers in the liquid sector operate distinct businesses with distinct markets and costs,” he said. “If rumours of a wave of cuts in the liquid sector are to be believed, farmers will reasonably be asking some serious questions about the process by which some milk buyers make pricing decisions.”

Raymond, referring to the voluntary code of conduct aimed at getting fairness through the milk supply chain, said there was another way forward; one where milk buyers and producers worked together and understood each other’s needs. Specifically the farmers’ need to make reasonable living and invest in the future of their business.

“For too long dairy processors have played fast and loose with farmers’ livelihoods, collectively failing to think long term,” he said. “Dairy farmers need a sustainable future – further price cuts will jeopardise this and be met with real anger.”

Meanwhile, producers have given resounding support for the link-up between Milk Link, the biggest UK milk producing co-op, and Arla, one of the big players in the world milk market.

Some 99.53 per cent of Milk Link members who voted endorsed the join up while Arla’s board also supported the link with a 90 per cent plus vote.

ANDREW ARBUCKLE