Dairy Crest and First Milk cave in to the producers’ pressure

THE dominoes in the battle over milk prices continued to fall in favour of the dairy farmers yesterday, with both Dairy Crest and First Milk announcing they would not be going ahead with price cuts on 1 August.

Dairy Crest, which has been subject to intensive protest gatherings at various depots, including one at Hunstanton, Norfolk, where farmers disrupted vehicles going to and from the premises, said it would put any planned reduction aside for two months to allow more time to find a long-term solution.

Two of Dairy Crest’s main customers have agreed to pay a supplement to support farmers and that will be fed through Dairy Crest to the suppliers.

In addition, Dairy Crest confirmed it would make up any shortfall.

Mike Sheldon, of Dairy Crest, described his company’s shift as a “bold move.”

“We remain committed to paying fair milk prices, a commitment fully demonstrated by today’s decision.”

The much bolder move was made earlier by First Milk as the farmer owned co-op still had to negotiate with its customers over the change in policy.

First Milk’s chief executive, Kate Allum commented: “While we have still to complete discussions with our liquid processor customers, we have a responsibility to our farmers to show leadership in this situation and remove any uncertainty.

“On that basis, we have decided to immediately withdraw the planned August price cuts that were put in place as a result of moves by our liquid customers.

“Dairy farmers have spoken with one voice over the last few weeks, and they’ve made it clear that they reject the existing model where they are price takers and favour working together to gain an equal seat at the negotiating table.

“It is therefore critical that the whole dairy supply chain now looks to develop better structures and relationships for the short, medium and long term.”

NFU Scotland welcomed what it described as “the positive leadership” shown by First Milk and said that dairy farmer ire would now focus on the UK’s largest liquid milk dairies.

Mueller Wiseman’s Bellshill, Lanarkshire, depot was being targeted last night by angry farmers. An Arla spokeswoman said an announcement would be made on its position “shortly.”

An NFU spokesman pointed out it was these companies that sparked the current round of milk cuts, and producers would be looking for them to follow First Milk’s lead.

Yesterday also saw union president Nigel Miller and chief executive Scott Walker join farmers outside the Farmfoods and Iceland’s stores in Forfar to enlist consumer support for the campaign.

Within less than two hours, had the group had gathered 180 signatures of support. Very few shoppers or passers-by refused to sign, which was encouraging for the producers.

Less so was the heavily discounted price at which milk was being offered within the stores. Farmfoods was offering two litre packs of “Wiseman The One” brand at 85p (42.5p per litre).

Its own label, also in a two-litre pack, was for sale at the same price.