UK dairy farmers call for fairer share of returns

MILK: Producers in EU and New Zealand ‘more valued’ while those here face further price cuts

Scottish and UK dairy farmers are lagging behind the returns currently being enjoyed by many EU and New Zealand producers, according to the latest analysis by levy body AHDB Dairy.

In the week farmer-owned First Milk followed other buyers in reducing the price they pay suppliers by 1p/litre, the farmers’ union has called on the supply chain to deliver fairer returns to producers.

While the price cuts are a consequence of weakening milk commodity prices, NFU Scotland says farmers cannot continue to be at the sharp end of this pressure.

Union vice-president Gary Mitchell said: “In New Zealand, the average milk price over the last year was ahead of the UK.

“In Europe in the past 12 months, the UK has lagged Northern European countries by between 2p and 6p per litre.

“While there will be many varied reasons for this, the result is that dairy farmers in Scotland and the UK have little confidence that the supply chain is fairly sharing returns from high-value dairy products with those milking the cows.

“This is a travesty as global dairy demand, both short and long term, remains strong.

“This week saw the positive sign of global auction prices for dairy commodities rising by more than 4%, largely due to weather issues impacting on production in New Zealand.

“It is a sharp reminder to all milk buyers and end users that they cannot take milk supply for granted.”

Mr Mitchell said solutions to the industry’s problems had to be based on increased trust and collaboration.

He added: “A case can be made that the relatively high milk prices in Northern European countries, New Zealand and Ireland are to an extent due to a supply chain which values the contribution of farmers.

“That is underpinned by wider collaboration, shared efficiencies, commitment to marketing and government support for trade, education and regulation.”

The latest Scottish Dairy Farming statistics, which were published last week, showed a further decline in the number of dairy farmers.

The supply of milk should not be taken for granted, says the NFUS.