Milk sector in a fury over contract row

Jim Paice did not endear himself to Scottish dairy farmers when he rejected any possibility of contracts forming a basis of providing long term stability for primary producers.

Under a shower of questioning from dairy farmers attending the annual meeting of NFU Scotland, Paice said there was no realistic possibility of milk processors signing up to contracts with prices that were out of line with the market.

He admitted that many primary producers in the dairy industry were finding it unprofitable but pointed out that overall production had not dropped significantly.

"There are spots of sunshine out there," he claimed.

Despite his rejection of the idea of contracts sorting out the supply chain, Paice did say he would continue to fight for more equality in the milk production chain.