The Director General of the UK Statistics Authority, Ed Humpherson, has agreed with a complaint raised by a dairy industry analyst over milk price statistics used by Defra. A statistical inquiry by the Authority into the publication of milk price statistics which has concluded that Defra published misleading information earlier in the year.

In May, the environment department published a statistical notice reporting that the average farm gate milk price for February 2016 increased by 2.48p per litre. This was immediately called into question by dairy commentator Chris Walkland of Walkland Partnerships Ltd who tabled a formal complaint.

An explanation from the Defra statistical division suggested that the February price was affected by the payment of an annual bonus but this in itself could not have explained the increase quoted.

In response to the complaint, the UK Statistical Authority’s Ed Humpherson said “the presentation of the series including bonus payments was materially misleading”  and went as far as to say that the statistical notice should not have been published. He reached the same conclusion for publications produced in previous years. Defra has now agreed to engage with industry organisations to improve the quality of its statistics for future years.

On Wednesday, the Tenant Farmers Association (TFA) welcomed the ruling. TFA backed the initial complaint in the Spring, stating that it was simply impossible that the February milk price quoted by Defra was correct.

TFA North West Chairman and dairy farmer Robert Martin said “We were all amazed and confused with what Defra produced in its statistical notice but despite our protestations Defra appeared to be unrepentant.  These notices are used by dairy farmers not only in their negotiations with their processors but also in other types of negotiations like rent reviews.  When spurious information is issued this causes real problems.  I am pleased that this matter has been rectified and look forward to having further discussions with Defra to ensure that such problems do not re-occur”.