Muller UK & Ireland Group has confirmed that its milk price for April 2015 will remain unchanged.
The company is offering 24.15ppl from March 5, a leading ‘clean’ standard litre price in comparison to other major milk buyers, with contracts for farmers compliant with the spirit and intent of the Voluntary Code.
Managing Director of Mu¨ller Wiseman Dairies Carl Ravenhall said: “We are encouraged by recent signs of improvement in global commodity markets and very much hope that this establishes a trend. On the supply side, production of farm-gate milk will peak over the next period and we hope that this will be at a level which supports, rather than undermines stability and progress.”
It's a difficult time for milk producers, however the long term trend for consumption of dairy products 'remains positive' and prices will correct themselves, according to Andrew Slade, the Welsh government Director for Agriculture, Food and Marine's message to NFU members.
He said the UK's dairy farmers can afford to step back from the current downturn in prices and look to the future as international demand for dairy products is strong.
"We have got to get better at adding value to our milk, however, and less dependent on the half of what we produce that goes into the liquid market," Slade said.
"There are inevitably some limits to the value you can add to liquid milk in comparison with other dairy products.”
As regards the Common Agricultural Policy (CAP), Mr Slade believes that Welsh farmers are over-reliant on CAP subsidies, particularly Wales’ extensive livestock sectors. Mr Slade said, “In an era when there are questions about the UK’s continued membership of the European Union, and we know that the CAP budget is coming down, reliance on EU subsidies should be a matter of concern for every farmer in Wales.”
“The question of course is how do we get Welsh agriculture into a position to withstand cuts to spending on CAP in the future?” Mr Slade continued. “Some of the best farmers in the world are in Wales but unfortunately there remains a big gap between the best performing and the rest. Ministers are clear that we have to use the investment opportunities of the next Rural Development Programme (RDP) and work together to help narrow that gap in performance more effectively than we have done to date, as well as to develop new markets for the goods and services farming provides. The pressures on public finances are already severe, and these will only increase in future.”
Mr Slade concluded, “Our new Rural Development Programme is currently with the European Commission and we expect to have formal approval of it later this year. I believe it is the most ambitious RDP in our history in Wales. It is a more integrated programme which tries to cut out as much red tape as possible, and has a greater focus on measurable outcomes.”
Wyn Evans, Ceredigion NFU Cymru Chairman, thanked Andrew Slade for braving the weather to travel to talk to local farmers and for his honest and frank presentation about the future of the CAP and the RDP. He also thanked HSBC bank for their generous sponsorship of the event.
