Milk producers prepare to take direct action against dairies

Dairy farmer in the region are gearing themselves up to take direct action against milk price cuts and the NFU has promised to support them.

The move follows a crisis meeting in Staffordshire on Wednesday when more than 600 angry farmers gathered at just hours notice to voice their protest at the devastating price cuts announced by Robert Wiseman Dairies, Arla Foods UK and Dairy Crest.

Mansel Raymond, NFU national dairy board chairman, told producers the NFU would try to organise emergency meetings with the milk companies but would be prepared to support farmers taking action if talks failed.

"What's happened has been a disgrace and no-one is taking responsibility. We need to try and sort this out the way it should be sorted out. If this fails then we will go to the last resort."

He said he wanted to get a message of 'common sense' across to the dairy firms. "Do they want us to close our dairies?" he said.

Meanwhile NFU president John Kendall has met with Farmers for action chairman David Handley to formulate an action plan.

"We must take action before the dairy industry is on its knees," Mr Kendall said. "Dairy farmers are already quitting in record numbers and this new round of cuts, many due to come into force on August 1, is likely to be the final straw for many."

The huge attendance of the meeting in Staffordshire Show Ground organised at such short notice was aided by modern communications like texting which got the message out to farmers across the country . ASDA apparently was astounded that 600 farmers turned out

The meeting was initiated by Uttoxeter NFU branch chairman David Brookes a third generation family farmer with 160 cows. He said the meeting was vital as farmers were at a tipping point and farmers were prepared to take action. There would be flying pickets outside the meetings being planned between the NFU and milk buyers next week.

Farmers are desperate to get the public on board and there were also talks of taking a milking cow into Downing Street to show politicians how strongly they feel.

The impact of the price cuts will be felt across the whole of the industry. One tractor dealer in Staffordshire apparently has had eight people cancel tractors following the Wiseman announcement.

Another farmer at the meeting said the blame lay with the middlemen selling four pints of milk for 99p. "That why the supermarkets feel unable to commit to a higher price for their milk," he said.

Mansel Raymond said the supply chain was 'totally dysfunctional'.

"They all blame deterioration in commodity markets and cream prices – but none of them is taking responsibility for this dire situation.

"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.

"It is the aggressive and deflationary nature of price negotiations between retailers and processors that is really hurting.

"Some farmers receive a cost of production linked to their milk price but for those who aren't sheltered by such deals the pressure on price is once again unbearable.

"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.

"We need action and we need it now.

"Firstly, processors need to take responsibility and own up to the fact that they have been selling milk so cheaply in the first place and become too reliant on the price of secondary products for income. Second, government needs to sort out the mess that is dairy contracts. This has been promised; now is the time for delivery.

"I am calling for urgent meetings with all retailers and major food companies that buy liquid milk.

"This erosion of prices is crippling our dairy industry at a time when it should be thriving. It must stop; the very survival of our industry is at stake."