FDBusiness.com

The NFU (National Farmers Union) has strongly condemned the latest round of milk price cuts after three major dairy processors, who supply fresh liquid milk into the UK market place, issued notices for reductions. Robert Wiseman Dairies, Arla Foods UK and Dairy Crest have announced cuts to their milk prices paid to farmers of 1.7ppl, 2.0ppl and 1.65ppl respectively, following further significant cuts in recent months.

“This price slash comes at the expense of the average dairy farmer who is now making a significant loss for every litre they produce,” says NFU dairy board chairman Mansel Raymond. “Three processors will all cut their milk price on August 1; they all blame deterioration in commodity markets and cream prices – but none of them is taking responsibility for this dire situation.”

He continues: “For me, this just typifies everything that is wrong with this market place. It is time for liquid milk processors – and retailers and other major buyers – to take responsibility for this totally dysfunctional supply chain. It fails to address the one basic need of any business – the need to cover costs and make a profit.”

Mansel Raymond adds: “Until all retailers and processors commit to a fair and transparent supply chain, one that ensures a fair return for farmers, we will never break free from this vicious cycle of crisis after crisis in the dairy sector.”