9 August 2012

2 minute read

Europe

Members of the Dairy Coalition, due to hold talks on Friday (August 10), are expected to publish their forward plan, which will focus on making sure that milk buyers take responsibility for the future of dairy farming.

NFU President Peter Kendall said: “It remains our aim to deliver a functioning market place where dairy farmers can have confidence they will receive a fair and sustainable milk price that at least covers their costs of production.

“The work of the coalition has only really just begun. We are determined to bring about real and lasting change. Just this week, two milk buyers have signalled intentions to deliver long term pricing models. We do not wish to dictate the exact details, but it is critical that milk pricing models deliver sustainable milk prices for farmers.”

Following discussions with Dairy Coalition representatives, supermarket group Iceland Foods has agreed to investigate the development of an improved milk procurement model that clearly recognises the price paid to farmers by its supplying processors.

Dairy processor Freshways has also committed to working with industry consultants in developing a milk pricing mechanism which reflects farmers’ costs to produce milk.

Farmers for Action chairman David Handley said: “Both these businesses will be judged on their actions. Iceland has stated it has not derived any benefit from this year’s price cuts by milk processors. We have told Iceland it has an opportunity to show leadership by making a sustainable farm gate milk price a procurement specification.

“Likewise, Freshways will be judged on its ability to pay their supplying farmers a fair price based on a fair contract.

“Milk buyers can’t go on shrugging their shoulders and refusing to take responsibility for the future of the dairy industry. We demand that buyers step up to the mark and do their bit to ensure a fair deal for farmers.”

TheCattleSite News Desk