Farmers 'paying for' UK deflation, says NFU leader on Shropshire visit
Farmers are having to pay for Britain's deflation in lower prices for their products, an NFU leader said during a visit to Shropshire.
Meurig Raymond spoke at the Oswestry NFU annual meeting as he also visited farms and businesses in the area.
He said the industry was still in crisis, but said that one positive from the year had been the overwhelming support of the public with shoppers more than ever looking to buy British.
This year has seen desperate dairy farmers buy up milk from some supermarkets and give it away to shoppers, to show just what low prices they get for their produce.
Part of the problem is that farmers are on a variety of contracts for their milk, meaning that some are making a loss while others are managing to make money.
Mr Raymond, who farms in south-west Wales, said: "Prices for milk have stabilised but at a very low level.
"There are still dairy farmers that are being paid less for the milk than it costs to produce, and that is simply not sustainable.
"There are farmers who are being paid up to 32p a litre for their milk – but others getting just 15p.
"The Government has just announced that we are enjoying a period of deflation.
"But that is at the expense of British farmers as the cost of food is one of the main items used in calculating inflation or deflation."
Mr Raymond said lamb prices had also been down this season.
He said that the NFU is now urging the English and Welsh Governments to ensure that the 'Cap' payments – benefits handed out to farmers as part of the Common Agricultural Policy – are made as soon as possible after December 1.
One good piece of news this year, Mr Raymond said, was the support from shoppers.
"Consumers have given huge support to British farmers this year. We were delighted with the response to the Morrisons' Milk for Farmers brand and the volumes sold in support of farmers.
"Shoppers are also looking for the Red Tractor to ensure that they buy British produce – consumers want to buy from British farmers.
"I was at the Lord Mayor's parade in London recently and it was humbling to see the response by the crowds as the tractor there in support of British agricultural passed them by."
During a visit to the Oswestry branch of the NFU's headquarters, Mr Raymond was presented with a book chronicling the history of the branch, one of the oldest in the UK.
He also visited individual farms including Abertanat Farm, where the Eyres family has diversified by using its milk to produce Shropshire Cheese.
"Adding value to milk can be very important," he said.
"British is only 53 per cent self sufficient in dairy products so the more we can make our own cheeses, yoghurts and butter the better. It is not for everyone but it is an option to ensure a better return for your milk."
