Shropshire Star

Special report: Is it time for Shropshire farmers to get tough in milk price row?

Dairy farmers today said they fear the current milk crisis could continue into next year – as they called for similar concessions already won by militant protesters in France.

Published

Farmers in Shropshire fear prices could drop to well below 20 pence per litre in the coming months, which would prompt them to consider whether to quit the industry.

It comes after Arla revealed the price it will pay its UK members will by slashed by 0.80 pence per litre(ppl) to 23.01ppl from August 3.

Shropshire dairy farmers say direct action of some sort is almost certain to take place in the coming weeks as the milk crisis continues to grip the industry.

Richard Yates, who runs a farm at Middleton Scriven, near Bridgnorth, said British farmers would look at the action across the English Channel and think it is the only way to get people to take notice.

Mr Yates accused the Government of dithering over the crisis, and warned that many farms would not survive until Christmas.

He blamed the supermarkets for selling milk as a loss leader. "I think if there was some form of direct action against the supermarkets, I would support it," he said.

Last week a group of farmers staged a protest on the A50 in north Staffordshire, disrupting traffic by driving their tractors slowly along the busy dual carriageway. Mr Yates said while he could understand the frustrations of the farmers who took part in that protest, he was not convinced that was the most effective way of tackling the problem.

"The last thing we would want to do is alienate our consumers," he said.

"I would support some form of direct action, but we need to target it properly."

He said he believed that there would almost certainly be some sort of protest in the next few weeks. "There will be more farmers who will be taking some form of direct action because they have seen it working in France," said Mr Yates. "They have seen the French government cave in."

Rod McBean, who runs Brockhurst Farm at Aston, near Wem, said he thought direct action was inevitable. "I think it's going to happen," he said. "

Whether it is the right option or not remains to be seen, but some will argue that anything that puts this issue in the public eye is better than nothing."

He said he would support peaceful, lawful demonstrations.

Andrew Bebb, who runs an organic dairy farm at Hanwood, near Shrewsbury, said: "

I think there will be more sporadic action by small groups of farmers like we saw last week, but I don't think there will be anything organised."

The current cost of production for most farmers is about 30ppl, meaning many are losing cash on every litre they produce.

Rob Harrison, dairy board chairman at the National Farmers Union, said it was time for the government to intervene to help dairy farmers in the UK. He spoke as protests spread across Europe over low milk prices.

Farmers last week blocked all roads into Caen in lower Normandy and piled manure and tyres on the only road to the Mont St Michel, the medieval abbey-island on the Norman-Breton border. They also blocked the A84 motorway, one of the chief links between the Channel coast, Brittany and south western France.

The protests have already led to promises of help from the French government and Mr Harrison said it was time for concessions to be made here.

He said: "Dairy farmers across the UK are struggling right now and it's not getting any easier. The market outlook for the rest of this year and into 2016 is not positive so we're in for an extremely difficult autumn and winter.

"We know this isn't a UK problem alone – dairy farmers across the world are suffering from milk prices far below the cost of production – we've seen protests in France and milk being thrown away in Canada and the US.

"We desperately need the government's help to ensure a fully functioning and fair dairy supply chain.

"Now is the time for action. Just this week we've seen the French Government provide a list of support measures and financial backing to help their farmers through this difficult period.

"We also continue to meet with the major retailers, banks, food service companies and processors to urge for a fair, sustainable and transparent supply chain.

"There's so much more that can be done to promote high quality, traceable UK dairy products to help drive consumption."

Andy Holloway, who farms in Halfway House, near Shrewsbury, said the latest drop in the price of milk was very worrying.

He said the situation was now at a critical level, with farmers ready to leave the business as they struggle to make ends meet.

"The costs are still there for farmers but we seem to be the ones at the bottom of the pile," he said.

"If it was under 20ppl we would seriously wonder whether we could keep going.

"It is a difficult time for farmers. We are struggling. Over 12 months ago we were being paid over 30ppl when everything was rosy and everyone was making a bit of money.

"I think the biggest surprise is that nobody saw it coming and I have read it could continue into 2016."

Ash Amirahmadi, head of UK milk and member services at Arla, today defened the latest price cut, which he said was the result of market forces.

He said: "The downward price trend is continuing across markets globally, with the latest Global Dairy Trade auction down significantly by 10.7 per cent and this has put further considerable pressure on the markets.

"The situation is not helped by high milk production throughout the world, while demand from China and Russia, in particular, continues to be low."

Arla's announcement came a week after hundreds of farmers packed into a meeting in Market Drayton to ward off the threat to their livelihoods.

At the meeting campaigners pledged to keep protesting if milk prices keep falling.

Market Drayton-based Muller Wiseman announced earlier this month it is to cut the price it pays to farmers for their milk by 1p to 23.15 pence per litre (ppl) from Saturday.

Sorry, we are not accepting comments on this article.