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01/08/2007
Major gear shift in milk price now essential says NFU
Following today's announcement that Asda is to raise First Milk's cheese price by £400/tonne, the NFU is calling on milk buyers and retailers to deliver an immediate and significant increase in raw milk prices to re-inject confidence into British dairy farming.
NFU President Peter Kendall said: "Conditions so far this summer have been disastrous for many dairy farmers, not just those who have been affected by floods, but everyone who has been forced to house cattle, use valuable stocks of silage and is now faced with a massive feed bill going into the winter. The weather has been totally demoralising and has nipped any recovery in confidence that should have occurred with rising dairy markets well in the bud.
"The industry has been muddling through these last few difficult weeks, but something has to give. Yesterday, First Milk announced that it has been forced to invoke force majeure clauses in its supply contracts as a result of the recent extreme weather and spiraling rises in farm production costs. The only way to avert a severe reduction in volumes is for the supply chain to deliver an immediate and significant price increase to dairy farmers. I welcome Asda's move as a significant first step, but this must be followed by other supermarkets and must extend into all other dairy categories.
"With commodity markets continuing to climb vertically there is no reason why the industry cannot pull together to inject the confidence and cash that dairy farmers need to see them through".
NFU President Peter Kendall said: "Conditions so far this summer have been disastrous for many dairy farmers, not just those who have been affected by floods, but everyone who has been forced to house cattle, use valuable stocks of silage and is now faced with a massive feed bill going into the winter. The weather has been totally demoralising and has nipped any recovery in confidence that should have occurred with rising dairy markets well in the bud.
"The industry has been muddling through these last few difficult weeks, but something has to give. Yesterday, First Milk announced that it has been forced to invoke force majeure clauses in its supply contracts as a result of the recent extreme weather and spiraling rises in farm production costs. The only way to avert a severe reduction in volumes is for the supply chain to deliver an immediate and significant price increase to dairy farmers. I welcome Asda's move as a significant first step, but this must be followed by other supermarkets and must extend into all other dairy categories.
"With commodity markets continuing to climb vertically there is no reason why the industry cannot pull together to inject the confidence and cash that dairy farmers need to see them through".
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