UK farming unions have issued a stark warning to milk processors, urging responsible conduct and full transparency as the dairy sector heads into what could be one of its most testing periods in years.
Falling milk prices, rising production costs, global dairy market pressures and increasing volatility have created mounting strain across the industry, prompting the unions to issue a joint open letter calling for steadier supply chain behaviour.
In the letter, the chairs of each union’s dairy boards stress that processors must uphold fair dealing regulations, maintain open dialogue with farmer suppliers and ensure decisions are properly explained. They also encourage farmers to engage proactively with their milk buyers to make sure production aligns with market needs.
Together, the organisations say processors must show fairness, clarity and leadership if the sector is to withstand the downturn. They warn that without responsible conduct, the market could face further destabilisation, damaging confidence and deepening financial pressure on producers already working to tight margins.
Across the UK, union representatives voiced similar concerns about the months ahead. NFU Cymru Dairy Board Chair Jonathan Wilkinson said Welsh farmers were facing “a difficult winter” and stressed that it was “of the upmost importance that the dairy supply chain functions in a fair and transparent way”.
Building on this, NFU Dairy Board Chair Paul Tompkins said the sector in England was now encountering the first real test of the new contract regulations, which introduce an Adjudicator to oversee compliance.
He noted that farmers are now entitled to request an explanation of how their milk price is calculated, ensuring that any changes adhere to the terms of their contract, adding that it was essential for farmers to engage with their buyers and with the new regulatory framework as the market tightens.
In Northern Ireland, Ulster Farmers’ Union Dairy Chairman Cyril Orr warned that producers were entering a period of “significant market uncertainty and pressure on farm gate prices”.
He said trust between farmers and processors would be crucial and called for “greater openness, transparency and genuine collaboration within milk pools” to safeguard the sector’s long-term sustainability.
In Scotland, NFU Scotland Milk Committee Chair Bruce Mackie highlighted the speed of the downturn, warning that milk prices were “tumbling at an alarming rate” while production costs continued to rise.
He said the industry faced “a very difficult few months” and emphasised that transparency, consistent communication and fair play between buyers and suppliers would be vital for maintaining resilience across the supply chain.
With farmers confronting tightening margins, heightened global competition and deepening uncertainty, union leaders say processor behaviour in the months ahead will be decisive in determining whether the UK dairy sector can endure the downturn and safeguard its long-term viability.
