NFU dairy board chairman Rob Harrison said: “It is encouraging that at last we have seen a positive move on milk prices after a series of negative cuts in recent weeks. Dairy Crest has bucked the downward trend and has shown some support for their farmers, with a small increase for the Davidstow contract, and I applaud them for that.
“Last month we saw cream income to the processor increase nine per cent, and for a business that has strong brands and a strong domestic market, Muller needs to be far better at explaining why they are dropping the price. This just smacks of a run to the bottom, which is deplorable behaviour for any business, especially when dairy farmers are fighting for survival.
“Yes, milk production is still up in the UK, but across Europe volumes are starting to ease, and estimates for European production increases for the year are up at 1.6 per cent, significantly less than last year. Global demand for dairy products is still increasing by a steady two per cent each year. Milk buyers need to be clear with their suppliers of the volumes required to satisfy current contracts, but also to do their utmost to seek new markets for any extra milk produced and attain the highest value for those products, not just pass the buck down the supply chain.”
