28 April 2011

2 minute read

Europe

In a bid to break the current stranglehold that large players have over the price a farmer receives for his milk, NFU Scotland is proposing a new, transparent and market-related pricing formula, to be incorporated into all producer contracts. Dairy farmers from around Scotland, including farmers from Dumfries and Galloway, have developed the proposal.

If the formula had been in place this month, dairy farmers would have received 32p per litre for their milk instead of an average price in the UK of less than 27p.

The Union hopes the formula can break the cycle of market failure in the dairy supply chain and allow all producers, irrespective of who they supply their milk to, to move forward with improved confidence and greater certainty.

The Dumfries and Galloway meetings – taking place in Dumfries and Stranraer on Tuesday, May 3rd - mark the start of a widespread discussion to be held with producers, milk processors and supermarkets across the UK.

NFU Scotland’s Milk Committee Chairman, Kenneth Campbell from Castle Douglas said:

“There is huge frustration at farm level that the price we receive for our milk rarely reflects its true value and as a result we remain firmly anchored at the bottom of the European price league. To address this, we are looking to move the whole milk debate beyond the same rhetoric and action that has dominated the dairy industry for more than a decade.

“This proposal has been developed by a group of dairy farmers representing every major milk supply arrangement in Scotland, from supplying co-ops, to major processors, to direct supply arrangements with retailers. It has been developed by producers, for producers.

“There is an overwhelming appetite for change and we invite every single dairy farmer – regardless of whether they are a member of the Union or not – to come and hear what we have to say. The opportunity of securing a more sustainable dairy supply chain is within our grasp.”

TheCattleSite News Desk