Time to give boost to milk prices
While welcoming recent rises in the price paid for milk by many of the major processors, NFU Scotland yesterday said that underlying improvement in the market justified further increases.
The union said that with world prices remaining strong, there should be further moves in line with the 60 per cent rise in commodity values and a 30 per cent improvement in milk prices.
The union’s milk policy manager, George Jamieson, said that indicators suggested a continuation of the strong market going forward into the winter, and urged milk buyers to acknowledge the underlying market dynamics.
“Processors should pay as much as they can, rather than as much as they can get away with if they are to inspire loyalty,” he said. “It cannot be stressed enough that the recent severe, extended period of very low prices has left serious and long-lasting damage to dairy farmers’ balance sheets and confidence, which has, and will, impact on future investment on farm, with longterm consequences on the competitiveness of the Scottish dairy sector.”
He said that while there were many examples of excellent working relationships and crystal clear contracts, there was still an “undeniable case” for more collaboration between farmers and the supply chain, more effective milk contracts, pricing models, volume management and risk mitigation.
He said that recent figures from the Scottish Dairy Cattle Association showed that another 33 dairy farms had left the industry over the past 12 months, with more losses likely.
“We have efficient and committed dairy producers who need a similar commitment from all stakeholders.” he said.