Milked dry
NFU calls meeting to highlight changes needed to save North West's dairy industry from disaster
There is growing concern that the North West's dairy industry is plunging into crisis as the price paid to farmers for their milk continues to be cut.
Cheshire's agricultural chaplain and Farm Crisis Network Coordinator, Keith Ineson, informed the NFU this week that he knew of a multitude of dairy farmers who had found themselves in severe financial difficulties because of the problems within the industry. The average price paid to farmers for a litre of milk back in July 2001 was 20.43p. In July 2006, it had dropped to just 17.17p. A fall of 3.26p.
With this in mind, the NFU has organised a meeting which will focus on the crisis currently facing the region's dairy farmers. The meeting will take place on Thursday 28 September at the Fourways Inn, Delamere starting at 7.30pm.
Recent cuts have again demonstrated that the way in which the dairy supply chain is operating, is to the detriment of dairy farmers.
NFU's North West Senior Policy Adviser, Adam Briggs, said: "Processors are quick to use the falling commodity prices as an excuse to reduce the farmgate milk price but when the commodity markets rise, the increasing value is never passed back to the dairy farmer.
"The way in which the supply chain operates is pushing many producers to the wall. It is up to everyone who wants to see dairy farming continuing on North West farms to take action."
During the meeting, Gwyn Jones, National NFU Dairy Chairman and Tom Hind, NFU Chief Dairy Adviser, will highlight the changes that need to take place, focusing on the supply chain's imbalance and the need for the introduction of fairer contracts.
The NFU has already produced its 'Vision' document which clearly sets out the key actions required in order to secure a profitable dairy industry. This document is available by contacting the NFU regional office on 01695 554900.
Mr Briggs added: "Despite the recent tit for tat price reductions the long term prospects for the British dairy industry are potentially positive. Both retailers and processors must recognise the need to change.
"However this will only be achieved if farmers play their part in bringing collective pressure to bear on the milk buyers, processors and retailers."
