Retailers respond to milking report

Food retailers have today voiced their support for the EFRA committee milk pricing report and backed calls for the Government to maintain its role as the driving force behind the Dairy Supply Chain Forum.

Kevin Hawkins, BRC Director General said: "The EFRA Committee are right - the structure of the supply chain is the key challenge facing Britain's dairy farmers. We welcome the Committee's call for Government to maintain its role as facilitator of the Dairy Supply Chain Forum and call for policy makers to focus on measures to facilitate change in the dairy industry.

"Food retailers have long supported the establishment of commercially oriented, farmer owned cooperatives and have provided financial backing for English Farming and Food Partnerships, which was set up to help farmers achieve this. However, we do not believe that many - if any - dairy farmers who currently supply the major dairies will decide to join a cooperative if this continues to entail a reduction in their supply terms.

"It is unfortunate that confusion still surrounds the objectives of the OFT Supermarket Code of Practice. The Code was never designed to influence market prices for agricultural produce including milk - nor should it. The Code of Practice exists to bring more stability and predictability to the relationship between the big four supermarkets and their direct suppliers.

"Food retailers will continue to work with their partners in the food chain to build a sustainable British dairy industry from which they are able to source supplies of the highest quality. We want to see an increased availability of British milk and increased innovation in the sector."