UK Dairy Farmers Threaten to Disrupt Milk Supplies in Opposition to Price Cuts

An emergency National Farmers' Union meeting chaired by NFU president Peter Kendall and Farmers for Action chairman David Handley, was called after three major processors slashed their payments, meaning many farmers are losing money on every drop of milk they produce.

6 Jul 2012 --- Dairy farmers are threatening to disrupt Britain’s milk supplies during the Olympic Games in a protest against slashed prices for their produce.

An emergency National Farmers' Union meeting chaired by NFU president Peter Kendall and Farmers for Action chairman David Handley, was called after three major processors slashed their payments, meaning many farmers are losing money on every drop of milk they produce.

The latest round of price cuts, announced in the past week and to take effect from August 1, come from Robert Wiseman Dairies, Arla Foods UK and Dairy Crest.

Mr Kendall said: "The time for talk is clearly over and we must take action before the industry is on its knees."

Mr Handley, from Monmouth, said: "We cannot emphasize enough just how urgent this is. The whole industry is looking to us for action."

Implications for West Country farmers are considerable. More than 1,000 are members of the co-operative Milk Link, which last month voted almost unanimously to merge with Arla Foods Co-Op, the giant Danish-based processor. Others send their milk to the Dairy Crest cheese creamery at Davidstow, in North Cornwall, though the latest price cut is on Dairy Crest's fresh milk contracts. And many supply Robert Wiseman's new factory at Bridgwater.

NFU dairy board chairman Mansel Raymond, said: "All producer representatives must now stand together and fight to restore profitability."

In recent days three major dairy processors have announced further reductions to the amount they pay farmers for milk, leaving many losing money on each litre they sell.

The NFU has called for all milk price cuts imposed on farmers since April 1 to be restored by August 1.

The unions have also called on farmers to show their strength of feeling by turning out in force at a crisis summit in London on Wednesday, leaving retailers, MPs, processors and the public in no doubt about the scale of the problem. The summit will tackle the need for retailers working with processors to take responsibility for a sustainable supply chain which returns at least a cost of production for dairy farmers.

A joint statement said: “The catastrophic cuts will drive farmers out of the dairy industry and we are united in our demand for an immediate reversal of recent and planned cuts. There has been an unprecedented outcry of anger and frustration among farmers. We want to harness that strength of feeling and bring together farmers from across England, Scotland and Wales to express their feelings in London next week.

The three processors all attribute the price cuts to irresistible market pressures.