Coronavirus: Over 2,000 letters sent to MPs urging dairy sector action

Some farmgate prices are now estimated to be in the region of 17-22ppl are a result of the coronavirus crisis
Some farmgate prices are now estimated to be in the region of 17-22ppl are a result of the coronavirus crisis

A huge groundswell of support for the British dairy sector has seen more than 2,230 letters written to nearly 400 MPs as part of a campaign calling for urgent help to save it.

The almost complete closure of food service and hospitality outlets as a result of the Covid-19 crisis has meant the loss of market for around eight million litres of milk per week.

Already, a quarter of all dairy farmers in England and Wales have been hit financially as a result, according to the NFU.

MPs are now being asked to call on government to intervene and address the unfolding crisis and protect dairy farming businesses from lasting damage.

NFU dairy board chairman Michael Oakes said the coronavirus pandemic has caused a 'totally unprecedented and extremely fast-moving situation'.

"I’m speaking to dairy farmers every day who’ve hit rock bottom, many significantly impacted by the huge disturbances in the market and now facing deferred payments, uncollected milk and changes to contracts," he said.

“It’s not just cash flow that’s affected. We have also seen a raft of price cuts to dairy farmers on the back of the market disturbances."

Some farmgate prices are now estimated to be in the region of 17-22ppl, something which Mr Oakes called 'clearly unsustainable'.

“Defra and government have to grasp the seriousness of the situation," he said, encouraging dairy farmers and the public to write and engage with their local MPs.

“Unprecedented times mean we need unprecedented measures to ensure the long-term sustainability of the iconic British dairy sector - the backbone of rural life.

"Hardworking dairy farmers and cows producing nutritious, delicious products for the nation, need our help now," Mr Oakes said.

NFU and dairy industry proposals to government include a targeted grant scheme for affected farmers that is similar to the Retail and Hospitality Grant Scheme.

Industry has called on government to engage with the EU Commission to introduce market support measures, such as Private Storage Aid.

A novel cow furloughing scheme run by government to help reduce production on a voluntary basis could also be introduced, farmers have also suggested.

It comes as government officials are reportedly considering a hardship fund for dairy farmers severely affected by the ongoing Covid-19 crisis.

The fund could take the form of a targeted time-limited payment for impacted farming businesses, a report by BBC News said on Wednesday (28 April).