Milk strikes cannot achieve their objectives

The chairman of Dairy UK said today that disruptions to milk supplies over the Christmas period would not lead to higher milk prices for farmers.

David Curry said that everyone working within the dairy supply chain appreciated and sympathised with the frustration felt by many producers, the harsh reality is strikes by farmers could not lead to co-ordinated price increases.

Mr Curry said: "The incessant and rigorous scrutiny by the competition authorities means that co-ordinated price increases are not an option. They are illegal. We have all been reminded over the last few days how much scrutiny the dairy sector is under with the revelation of an OFT investigation.

"No matter how sympathetic we feel towards the position of farmers, we must face up to the fact that there is no legal way in which co-ordinated milk prices increases can be agreed. Milk pricing in the UK will ultimately be the product of market driven competition. Increases in industry income can only come from improving our competitive position in the market place.

The threatening of supplies over Christmas might also undermine consumer enthusiasm for dairy produce just when the liquid milk market is showing its first increases for years, partly thanks to the appearance of branded products. Branded cheeses are doing well and the public is showing a strong interest in innovated dairy produce. Delivering what the consumer wants not denying the consumer supply is the foreseeable way giving farmers a secure future.

"Dairy UK is to meet the OFT to discuss the implementation of competition policy in the UK. The sector needs to be able to restructure and consolidate in order to be able to compete with its European counterparts. We believe that the competition authorities should not try to thwart reasonable consolidation within the industry and it is time that their focus on the dairy sector is reviewed."