The ‘Dairy Godmother’ this morning delivered free pints of milk to 300 homes around Edinburgh this morning as part of a campaign by NFU Scotland. The unconventional delivery was intended to highlight the plight of Scottish dairy farmers and thank consumers for their support.

Accompanied by the union’s president, Nigel Miller and East Lothian dairy farmer Simon McCreery, at whose farm the milk was produced, the Dairy Godmother’s final drop-off point was Bute House, official residence of Scotland’s First Minister. There, the small NFUS delegation met with First Minister Alex Salmond to discuss the current dairy crisis and possible long-term solutions. 

Nigel Miller said after the meeting, “The response from those who woke up to the pleasant surprise of having an unexpected pint of fresh milk on their doorstep totally reinforced our view that Scottish consumers truly value having Scottish milk and dairy products available. 

“The scale of the price cuts currently being imposed on producers by processors has rightly invoked anger and frustration amongst Scottish dairy farmers because they threaten to undermine any confidence that farmers have to continue milking cows in the future.”

Farmers are calling for the reversal of price cuts inflicted since May, which they say have brought farm-gate milk prices below the cost of production and threatened the future viability of the sector. After protest actions were carried out yesterday farmers have demanded price cuts be rescinded by 1st August, when the latest round of cuts were due to take effect.

The NFUS president said farmers are also working on a “robust code of practice for the dairy sector, to be put in place so that contractual arrangements between dairy farmers and milk buyers are balanced and not open to the kind of abuse seen in recent weeks.” 

In Scotland, farmers have benefited from government support during the milk crisis; following last week’s Dairy Summit in London, Scottish Rural Affairs Secretary Richard Lochhead unveiled a plan of action and called for further meetings to resolve the crisis. Conservative Farming Minister Jim Paice has been less proactive.

The farming minister today declared, “Government cannot and should not set prices but I will do everything in my power to get all levels of the supply chain to make the real changes needed to guarantee the industry's long-term future. Farmers and processors need to work together through an industry code of practice on contracts, and retailers have to help shift the focus away from short-term practices which are completely unsustainable.”

At the dairy summit, the minister incurred the wrath of 2,500 assembled farmers by suggesting they chased processed dairy product or lucrative export markets and that they increase their efficiency.

Today, First Minister Alex Salmond said, “These further price cuts clearly demonstrate that the milk supply chain is not operating fairly and the ongoing instability in the market is not serving the long term interests of the wider industry and may well prove to be the final straw for many of our hard pressed dairymen.  Our farmers are frustrated and angry and I well understand why feelings are running high.
 

“This is clearly an utterly unsustainable situation which is why I’m pushing for urgent action.  I hope this week’s ministerial dairy summit will move us closer to a long-term solution that will ensure our dairy sector can flourish.”

NFUS will discuss developments in the dairy sector at an open meeting, being held at Lanark Market on 30th July.

Following continued pressure from the farming community, including a 'name and shame' campaign being coordinated by the NFU, the Cooperative supermarket announced a second increase to the premium it pays farmer suppliers, bringing the total they receive up to 29 pence per litre, effective immediately. The price of milk production in the UK is currently estimated to be in excess of 30ppl.

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