Dairy voices must make themselves heard
NFU national milk board chairman, Gwyn Jones paid a flying visit to Leicestershire on Monday (25 July) to meet dairy farmers and discuss current issues. About 30 farmers met Gwyn at Pat and John Stanley's Spring Barrow Lodge, near Coalville and top of the agenda was, of course, milk pricing.
Gwyn is confident that UK producers are amongst the most competitive, efficient and well placed in the world, with a market of 60 million people on our doorstep. But, he said, the tit-for-tat approach to pricing that the NFU is so determined to move away from has returned. It is undermining the confidence of the industry and forcing efficient producers out of the industry.
Press headlines have been dominated by the decision by Arla foods to reduce prices by 0.35ppl from 1 June and the aftermath of this. We have seen further price cuts in the base price although there has been limited upwards movement reflecting improved returns from the cheese market - as a result of recent NFU lobbying.
"NFU lobbying activities at the end of last year lead to a 1.5ppl increase in the milk price, but I've not spoken to a single farmer whose seen this increase translated in to an increase in the farmgate milk price," said Gwyn. "Tesco is setting up an audit trail to explain how the extra payments get back to farmers, a point that they are finding difficult to prove."
Gwyn went on to say: "The NFU is working hard to secure a price increase for dairy farmers, but remember the NFU has no milk to sell and is not in a position to negotiate milk prices. We are a lobbying organisation and as such our job is to influence, inform and persuade."
The producers at the meeting all agreed that the present position is untenable. Dairy farmers have got to find a better way of doing business: every farmer should be getting a fair return from the market place. The Waitrose model, which pays farmers more, irrespective of the cost of collection, is a model to shout about. Producers, processors and retailers must work together to restructure this industry.
Producers voiced their frustration at the recent price cuts and discussed possible courses of action, including stepping up direct action and withholding milk. All were adamant that the NFU should continue to act as a voice for producers.
"We must all keep the pressure on the Government, supermarkets and processors," concluded Gwyn. "Phone, hassle and ensure your voice is heard!"
