A Shropshire farmer lobbying for fairer deals on milk prices has received a letter from a government minister promising new measures to ensure large retailers do not “abuse” their power.

Dairy farmer Andrew Bebb, of Hanwood, near Shrewsbury, said his business was being threatened by powerful supermarkets gaining a stranglehold on milk prices and raised his concerns with his MP.

He met Shrewsbury MP Daniel Kawczynski, who penned a letter on his behalf to the Minister of State for Agriculture and Food, Jim Paice.

In his letter of response Mr Paice said the government was now introducing an “adjudicator” to deal with complaints between supermarkets and their suppliers.

And he vowed to “drive forward” the dairy supply chain forum to find solutions to the dairy industry’s problems.

In the letter, he said: “The government does not want to influence prices as we believe the market must drive both production and price levels.

“However, in a period where input costs are rising and forecast to rise further, it is important to ensure large retailers cannot abuse their power by transferring excessive risks or unexpected costs onto their suppliers.

“While the Grocery Supply Code of Practice (GSCOP) is a great improvement on the previous regime, the power that large grocery retailers can wield over their suppliers can still create pressures on small producers, which ultimately may impact on consumers.

“Therefore we are introducing a grocery code adjudicator to enforce the GSCOP by taking complaints between supermarkets and their suppliers.

“We believe the time is right to drive forward the work of the Dairy Supply Chain Forum, to help the dairy industry find shared solutions to common problems.

“The forum, which I chair, provides an opportunity for all links in the supply chain to meet to discuss the problems and challenges facing the industry and come up with collaborative solutions.

“Our goal is a dairy sector that is profitable, thriving, competitive, and one which produces for the market.”

By Sam Pinnington