Members of the Dairy Coalition today renewed their challenge to milk buyers to urgently reverse the price cuts implemented in May and June.

In a joint statement from the coalition NFU, NFUS, NFU Cymru, FFA, RABDF, WUF and TFA, NFU dairy board chairman Mansel Raymond said there were positive signs in the strengthening of global and domestic dairy markets, as a result of global supply tightening.

“There are some signs of improvement in the global market that would justify price increases” he said. “What’s more, it’s clear from recent media reporting of drought in the US that farmers’ costs are rising significantly. The prices cuts made in May and June are still hurting; farmers need to see that money back into their businesses now.

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“Looking to the medium term, milk buyers all have the opportunity to identify new ways of doing business with dairy farmers and their customers. We are working with all parties to agree the voluntary code, as laid down in the heads of terms during the Royal Welsh Show. Long term relationships, based on transparent and determinable pricing mechanisms, are vitally important to the future development of the British dairy industry.

“I firmly believe that dairy farmers also have the opportunity bring about change in the supply chain. The Coalition is calling on farmers to add their contact details to a database, to allow us to discuss and potentially build producer organisations. This will help to give farmers more strength and power to negotiate in what is a very tough and competitive marketplace.”

Information on producer organisations will be available for farmers at the dairy event from Coalition members and there will be the opportunity to sign up to a database provided at the event on September 4 and 5.

• Members of the Dairy Coalition are: NFU, NFUS, NFU Cymru, FFA, RABDF, WUF and TFA.
• The latest ‘Global dairy Trade’ auction showed a 7.8% increase on the previous auction,
• DairyCo reports that global milk supplies are tightening as a result of adverse weather conditions in key exporting regions, such as the US.
• Since the start of the year intensive dairy rations have increased in price by a typical £21/tonne (DairyCo, based on midpoint of range date)
• Farmers experienced the wettest April-June on record, which will undoubtedly have had an impact of conserved forage quantity and quality., leading to higher feed costs this autumn/winter.
• The estimated cream income to a liquid processor decreased by 0.12ppl (2.0%) to 5.83ppl in July; 3.17ppl (35.2%) lower than the 9.00ppl achieved in July 2011. Source DairyCo

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