A group of Island Dairy Farmers, concerned about milk price cuts, travelled to Westminster last week to attend the National Farmers’ Union Crisis Dairy Summit. After the summit some of the group met with Island MP, Andrew Turner, to discuss their challenges.
Milk prices paid to the farmers by dairy processors are set to be cut by around 2p per litre from 1st August, this follows a similar cut in the Spring. The National Farmers’ Union has calculated that this equates to a loss of income in the region of £40,000 per year for the average dairy farmer.
Andrew Turner said:
“In recent years the milk price to dairy farmers has become very volatile – and not linked to the price people pay for their ‘pinta’. Many dairy farmers have survived purely by trimming costs as far as possible and not re-investing in their businesses. It is not feasible for them to cut back any further without directly affecting the welfare of their animals. If something is not done soon some farmers will go out of business and that would be a huge loss to the Island.
“A number of measures are being put in place to address this issue. The Government is working with the industry to introduce a code of practice which would improve contractual terms and conditions, crucially that will include greater price transparency.
“Farmers simply want a fair price for their product and a fair contract with the milk processors. Currently milk buyers can chop and change prices or end contracts without notice. The planned introduction of a Grocery Code Adjudicator in this parliamentary session will also protect farmers from retailers passing on unexpected costs.
“The price of milk paid to producers should reflect the price the customer pays in the shops.”
