Shropshire farmers warn of further milk price protests
A farming organisation has warned of protests if the price of milk continues to fall and urged dairy farmers in Shropshire to address the supply and demand issue.
Hundreds of dairy farmers attending an emergency meeting in Shropshire last night voted for direct action following cuts to milk prices.
About 400 people attended the gathering, organised by campaign group Farmers For Action, at Market Drayton Agricultural Centre.
The meeting was called after Market Drayton-based dairy giant Muller Wiseman revealed its price for milk will drop by 1.8 pence per litre to 29 from October.
Should major supermarkets offer a better deal on milk prices to farmers? Vote in our poll and have your say in the comment box below.
The FFA said the meeting was held to inform and gauge reaction so they could plan a way forward.
At the meeting, chairman of FFA David Handley's central message to farmers was that the answer to the industry's problems was in their hands.
He said: "There are three things currently against us – supply and demand, the situation in Russia and the global downturn. The supply and demand issue is your fault.
"We are currently 11 per cent above the two worst years we have ever had for milk production. This is not where we should be."
The FFA fears it could see the industry face similar problems to two years ago when farmers faced bankruptcy and staged a series of protests.
In 2012 farmers, who were receiving about 26 to 28 pence per litre, took part in a series of protests outside Muller Wiseman calling for better milk prices.
The dairy firm has said the current reduction in price reflects a sustained decline in revenues generated from sales of butter and cream, products which are traded in global markets.
Mr Handley said: "If we don't do something now there will be further cuts and milk prices will be 3p lower by the end of 2014. It is on the books already.
"Do your maths and talk to the processors. When the milk prices were announced, we sent out an email asking if farmers wanted to protest. We have had 1,100 emails back saying yes and two saying no.
"Once we have been around the whole country talking to farmers we will meet and decide if protest is the right step or if we should carry on what we are doing now."
A Shropshire dairy farmer who attended the meeting and wished to remain anonymous said: "We are a small family farm and if the price continues to fall we will be out of the industry in a matter of months." James William, a farmer from Hereford, said: "FFA saved us in 2012 and unless farmers back them again many farmers will be bankrupt. David Handley and co are doing the job the NFU should be doing but will not."
Oliver Cartwright, NFU Shropshire spokesman, said the recent change in milk prices was disappointing.
Martin Armstrong, head of group milk supply for Muller UK & Ireland Group, said it believes the price it is offering will continue be one of the best available in the UK.
He said: "We will continue to invest heavily to add value to farm-gate milk, but we are not immune to the severity of the decline in the value of these globally traded commodities. Realisations from these products are now substantially lower and after a period of record milk prices, we have no option other than to reflect this in the farm gate milk price we offer. Despite the reduction, we believe that the price and proposition we offer non-aligned dairy farmers will continue to be one of the best available in the UK.
"Our standard price is 'clean' and not eroded by deductions for balancing, haulage, capital or membership levies."
