Unions seek answers on price cut

Farming unions have arranged a meeting with milk processor Müller over its recent announcement of a 1.5p a litre price cut for its non-aligned suppliers from next month.

NFU Scotland (NFUS) and NFU England and Wales say they plan to meet the dairy giant next week to discuss the matter.

NFUS vice-president Gary Mitchell, who runs a dairy farm near Stranraer, said: “Such a large drop in price from Britain’s largest producer of branded and private label fresh milk, butter, yoghurt, desserts and dairy ingredients needs to be properly explained.

“Why have Müller been the first to cut and cut so savagely when they have lucrative contracts that should provide milk price certainty for their dairy farmers?”

He said the price cut announcement was out of line with prices being offered by European neighbours, leaving the UK dairy market “out of sync with the rest of Europe”.

He said farming unions were now demanding full price transparency between farmers, processors and retailers.

“We have written to Grocery Code Adjudicator Christine Tacon and Secretary of State for Environment, Food and Rural Affairs, Michael Gove, asking them to do what is necessary to bring some badly needed price transparency to this market,” added Mr Mitchell.

A spokesman for Müller said: “We are surprised at the NFUS’ criticism of the company for providing advance notice of a price change from January.

“Our understanding is that their preference is for processors to provide adequate notice of a change. We are doing just that, through compliance with the Voluntary Code.”