Industry must take a fresh attitude to securing milk price increases
NFU Cymru's Milk Board has been scathing in its response to recent cuts in milk prices and reiterated its New Year message that the industry must take a fresh and positive attitude to securing milk price increases.
Chairman of NFU Cymru's Milk Board, Mansel Raymond of Pembrokeshire said, "I am hugely frustrated that retail prices and margins for milk and dairy products have increased while farm-gate milk prices are declining once again. With milk production heading for an all time low and on-farm costs soaring in the past year on the back of energy price hikes, these cuts just cannot be justified at this point in time. Whilst the dairy market remains strong, this just isn't being reflected in the prices paid to farmers."
He added, "My message in January was to encourage optimism and fairness urging retailers and processors to acknowledge their responsibility to take a fresh approach that secured positive deals to move farm-gate milk prices upwards. The dairy sector has a strong commodity which should be a guarantee of a fair return and profit to all those involved in the industry. However, the reality of the situation is that this is just not happening. The industry hasn't moved forward a single step in terms of positive price negotiations and the dairy farmer, the last one in the supply chain, is being squeezed out of the bargaining equation yet again.
"Farmers desperately need a positive message in the form of price rises to allow some security of returns and reinvest in their businesses with a degree of optimism and confidence. Farmers cannot continue to produce milk at a loss, and this is a situation that must change quickly."
On a more positive note, the NFU Cymru Milk Board was given details of a new co-operative venture to export calves to the continent. Anglo European Farmers Ltd, an industry based co-operative, has circulated its prospectus to dairy producers inviting them to contribute £3 per dairy cow to secure an initial 6-month charter of a ferry.
Mansel Raymond said: "This is certainly a venture that we support to secure a reasonable return for our bull calves. It appears to be well thought out, the infrastructure is in place as is the means of transportation and crucially reliable continental customers. A positive vote this week by the European Standing Committee for Food Chain & Animal Health will hopefully allow beef and live cattle exports to resume in April. The Anglo European Farmers Ltd venture does offer a viable and practical opportunity to transport calves to the continent."
The Board also had a long discussion with David Curry MP, the Chairman of Dairy UK with Mansel Raymond commenting: "I welcome the fact that David Curry attaches huge importance to the engagement of dairy farmers in the work of Dairy UK. In particular, I welcome his commitment to the need for the OFT to clarify as a matter of urgency its criteria for permitting consolidation in the British dairy industry and the need for Dairy UK, Food from Britain and other devolved partners to work together to develop a plan to raise the profile and identity of British dairy produce overseas."
