The NFU has called for action from the EU and British government in light of further cuts for dairy farmers.
 
On Wednesday, NFU dairy board chair Rob Harrison said the next few months will be extremely tough and called on the industry to stand together and on the government to act to ease farmers’ burden.
 
Harrison, who will step down at the end of the month, made his appeal in response to news of fresh price cuts, from First Milk, who announced a cut to members supplying their creamery pools, Muller, who announced a 1.35ppl cut to their suppliers, and Arla. The Danish cooperative has given its direct suppliers 12 months’ notice on their contract as they’re struggling to find a market for milk.
 
Mr Harrison said, “I won’t lie – it’s really difficult out there for many dairy farmers and I honestly don’t see the situation changing in the short-term. The market remains extremely tough and buyers are concerned with the impact of the forthcoming Spring Flush. But AHDB Dairy figures show daily deliveries are coming back in line with February 2015 levels.”
 
He continued, “We need more milk buyers to show responsibility in trying to match supply and demand – and this needs to be done alongside farmer suppliers. We desperately need help from the government and the EU who must both do more to ensure a sustainable future for the dairy sector and help make tools available for farmers to manage volatility.”
 
He outlined a wish list of demands from the EU and UK authorities. these include:
 
EU:

• The European Investment Bank (EIB) to speed up its work to refinance farm borrowings
• The European Institutions to take steps to alleviate the problems farmers are facing in the wake of the Russian ban
• The dairy intervention price thresholds to be reviewed.
• Fertiliser import tariffs to be removed to boost competition in the European fertiliser sector

 
Government:
 

• The RPA to speed up BPS payments and ensure that this is not a problem in future years.
• Improvements to the labelling of dairy products to ensure consumers are buying British
• Government agencies doing more to support the public procurement of British food

The dairy board chair’s calls coincided with the release of a report by the government’s EFRA Select Committee, which looked into falling farm gate prices and made recommendations, following an inquiry launched last September.

The EFRA Committee was highly critical of delays to farm payments, warning that delays to farm payments are “putting livelihoods at risk.”

The Committee’s recommendations included:

• Seeking assurances from retailers that farmers are not being forced to bear the brunt of supermarket price wars;
• Extending the Grocery Adjudicator’s remit to include both direct and indirect suppliers of supermarkets.
• Improving communications between Defra and its equivalent departments in devolved countries (and widening Defra’s scope to include all of the UK, not just England. The Committee expressed reservations about the government’s 25 year plan, set for publication in the spring);
• Farmers improving their strength through collective action and forming producer organisations;
• Industry and Defra collaborating to work on futures markets;
• Defra encouraging farmers, processors and retailers to agree more long-term contracts that provide predicable income levels  

 
NFU President Meurig Raymond said on Wednesday, “Pricing models, long term relationships, contracts, producer organisations and a greater emphasis on export opportunities for British agriculture are all tools which can be used by government and the supply chain. Using these tools will help the agri-food sector through this period of uncertainty and the whole supply chain better combat volatility.”