£5m plan a positive step for Shropshire dairy farms
Dairy farmers in Shropshire have today welcomed £5 million Government plans to form co-operatives to give the industry more power when selling its milk to big companies.
Farmers said it was a 'positive step' towards increases in price they get paid for milk. Under the plans, farmers would be able to join forces to form producer organisations, rather than negotiating with major processors on an individual basis.
Producer organisations, which are widespread in Europe, could cover up to a third of UK production and negotiate on behalf of all their members.
The proposals, which have been published for consultation by the Department for Environment Food and Rural Affairs, follow a difficult year for dairy farmers who in the summer fought against moves by the major processors to further cut the price they pay for milk.
This sparked a series of summer blockades at Müller and Robert Wiseman Dairies in Market Drayton.
An industry agreement on a voluntary code of practice on contracts between farmers and processors has since been agreed.
Andrew Bebb, who farms in Hanwood, near Shrewsbury and is a member of the campaign group Farmers For Action, said: "It's a positive step in the right direction.
"We can't go through another year like we just have. Something has got to give.
"We have had some minor gains in the prices but they are still not enough.
"Costs are still escalating and we can't cover the cost of production."
Farming Minister David Heath announced that farmers in the sector will also be able to apply for a share of £5m from a fund to set up producer groups and co-operatives and invest in new technology to boost their businesses.
