Shropshire farming campaigner fears for future over low price of milk
A farming campaigner today said he remains fearful farmers will continue to turn their back on the milk industry unless prices significantly rise.
David Handley, chairman of Farmers For Action, has called on the Government to intervene in the dairy supply chain and make sure farmers are benefitting from money made at the top.
Mr Handley said average losses for dairy farms have been as much as £90,000 over the last two years.
He said: "All farmers are asking for is a price that reflects what it costs to produce the milk.We are using all sorts of different tools to improve efficiency and are benchmarking against the very best to see if we can all improve.
"The UK is a marvellous place to produce dairy. The people appreciate the product but it comes back to the Government again. Why are they continuing to let this happen year in year out? We start to get some stability and prices start to slip again."
"Somebody has to do something to investigate the market and it's good to hear the Government are looking at the grocery code adjudicator to see if they can give more powers for those further down the supply chain than just retailers to find out what is going on."
Last year more than 2,500 farmers and supporters, including many from Shropshire and Mid Wales, marched for their industry on the streets of London.
The protest, organised by FFA, saw the group present a letter of concern to David Cameron at Number 10 Downing Street.
Mr Handley added that the group has received a report from the dairy industry which states the average losses for dairy farms has been as much as £90,000 over the last two years.
He said this means farmers need at least two years getting between 34p per litre and 35ppl, whereas the price is now sliding towards 25ppl.
Dairy giant Muller, which is based in Market Drayton, has confirmed the milk price it will pay farmers for standard contracts will be unchanged in May.
The price announced by the firm was also held for April at a standard price of 26.69ppl.
The additional retailer supplement is estimated to be 0.3ppl, giving a paid price to dairy farmers of 27ppl.
Mr Handley said he is fearful of milk processors talking the price down, something he said happens frequently at this time of year.
He said: "If the price doesn't fall below 25p during summer and can start to pick up, we are in with a chance.
"If that doesn't happen and it does start to slide, I think there will be an awful lot of angry farmers but also a lot of farmers calling it day, who think there is no point in protesting or fighting.
"In Shropshire, Muller, which is the second biggest importer, is in a win-win situation either way, by increasing imports and by lower milk prices."
Mr Handley still believes the dairy industry has a future.
"I'm not trying to talk it down, I still think the industry is a fantastic industry with a fantastic future," he added.
