Protests warning as milk price war looms
Campaigners calling for fairer milk prices have warned further protests are imminent after negotiations with dairy companies failed.
Members of Farmers For Action(FFA) say they have been told by the companies they won't be increasing the price of milk this month.
Farmers gave companies until Sunday to respond to calls for increased prices after warning some could struggle to survive through the winter unless changes were made.
David Handley, FFA chairman, said: "We have been told there is no money. It has also been indicated by some that they will not be paying us any more in October either. Protests will be imminent.
"The global market is currently high but farmers are not seeing the benefits of this."
Paul Rowbottom, a Shropshire representative for FFA, added: "We have tried talking to them and have been to meetings. Unfortunately there seems to be no other option than to go protesting.
"It is down to farmers now to support the protests." Müller Wiseman, Shropshire's largest dairy, has been paying a standard rate of 31.5 pence per litre(ppl), with an extra penny as a production incentive, or offers a formula based contract for up to 33.27ppl.
The company announced this week that dairy farmers who have opted to sell their milk through the Müller Wiseman Formula Price contract are to receive 34.55ppl from October 1.
The FFA has previously said the cost of production currently stands at 33.5ppl.
Martin Armstrong, supply chain planning director for Müller Wiseman Dairies, said: "The formula price will perform very well in a strengthening market for global dairy commodities, but equally could suffer a sharp correction if commodities decline in value in the way that they did in 2012.
"Dairy farmer members were given the option to opt in to this formula in line with their attitude to risk and many have chosen to hedge by committing a portion of their output to the formula whilst maintaining the rest of their supply through the Müller Wiseman Standard Price, which is less volatile and reflects competition in the fresh milk sector.
"The prices of both options are extremely competitive and benefit from an additional production incentive of up to 1ppl and it should be stressed that they are not then eroded by capital levies, membership retentions, transport or balancing charges."
A Müller Wiseman Dairies spokesman added: "We recognise the position that farmers are in.
"We are fully committed to managing the competitiveness of the Müller Wiseman proposition."
Members of a milk partnership board negotiating for higher milk prices for the farmers who supply Müller Wiseman have previously warned against any direct action.
