Farming News - First Milk price cut notice 'totally unacceptable'

First Milk price cut notice 'totally unacceptable'


First Milk has announced a milk price cut of 0.5ppl for members; the cooperative has sparked outrage amongst farmers, who have asked for support and understanding as they bear the brunt of the current dairy crisis, by giving its members just half a day’s notice before the price cut took effect.
 
Suppliers were told the news late last Friday (31st July) that their price for 1st August was being reduced.
 
Commenting on the cut, NFU dairy board vice chairman Michael Oakes said, “Two years ago First Milk signed up to the Voluntary Code of Conduct on contracts in which they agreed to give at least 30 days’ notice of a price cut. In June they announced that they would no longer be giving this notice – but announcing a price cut the evening before it comes into force is totally unacceptable.
              
“What we need now, in such a period of market uncertainty, is trust, transparency and good communication from milk buyers to farmers – this is what the Voluntary Code was trying to achieve. We understand the difficulties facing First Milk and other milk buyers, but our dairy farmers deserve and expect support and honesty during this market downturn, so I would urge all milk buyers to increase communication with their suppliers.”
 
The controversial move coincides with action within Britain’s livestock and dairy sectors to find a way out of the crisis. Faced with falling returns, farmers across Europe have mounted protests; in Britain farmers have taken to A-roads in rolling roadblocks, whilst others have held demonstrations outside retailers' depots. Farmers in Scotland and Young Farmers groups in England have organised publicity stunts in supermarkets in protest against the prices paid to dairy farmers.

Britain’s farming unions announced plans for an urgent summit to discuss the situation yesterday. Unions from all over the UK will meet in London on 10th August.

Yesterday, NFU president Meurig Raymond said, “The plight of many farmers has become desperately serious and with no sign that things will improve, we really need urgent action from retailers, the food service sector and processors to show commitment to British dairy farmers. I also want to see Government agencies doing more to support the public procurement of British food.”