dairy farmers advised to unite in the marketplace

Dairy farmers will be urged to gain might in the marketplace by working together more effectively.

An NFU conference on the crisis in milk prices will take place at the South of England Showground, near Ardingly, in West Sussex on September 13, 2006. The debate will precede talks due to take place at the National Dairy Event at Stoneleigh in Warwickshire on September 20/21. Opening the discussions will be two speakers of national renown - NFU national dairy board chairman Gwyn Jones, himself a West Sussex farmer, and Farmers For Action Chairman David Handley.

Farmers from across the South will be asked to give their views on ways to improve relations in the supply chain so producers can gain a better price for their products. The NFU has already identified ways that milk producers can help themselves in its recent Vision For The Dairy Industry by:-

· Seeking better contractual arrangements, such as longer term contracts with customers (retailers and processors)

· Collaborating with one another to improve supply chain efficiency

· Working closely with customers to gain an insight into market dynamics

NFU SE policy adviser James Mulleneux said: "The UK has the potential to become the milking parlour of Europe. Our dairy producers are among the most efficient in the world. But the time has come for tough talking to make the supply chain work – raw milk prices must reflect the real returns available in particular end markets."

He explained: "Both retailers and processors must recognise the urgent need for change – too often reductions in commodity markets are used as an excuse for cutting farm gate milk prices."

The NFU last month endorsed a report by the Milk Development Council (MDC) which rejects the theory that a massive cut in production would be the best way forward for UK dairy farmers. The NFU has criticised a small number of commentators and dairy companies that advocate a significant reduction in raw milk supply.

Mr Mulleneux added: "The NFU is very much against a cut in commodity milk production. This would inevitably bring about further cuts in milk prices and a reduction in critical mass within the UK dairy industry, with the loss of between 20-40 per cent of milk producers."

The NFU believes the UK dairy industry has enormous potential in the global marketplace owing to the fact that its milk producers can produce milk at a competitive price.