Following the blockading of an Arla Foods plant in Leicestershire last week, which protesting farmers said was aimed to serve as a “gentle reminder” that the dispute over milk prices and inequality in the dairy supply chain is not yet over, another demonstration has been staged at a Muller Dairies plant in Market Drayton, Shropshire.

Farmers for Action, the direct action group which has coordinated pickets outside processors and supermarket distribution hubs over the past month, organised the protest, which lasted from 19.30 on Friday (17th August) into the early hours of Saturday morning. Protesting farmers blocked of access to the plant with tractors and trailers for the duration of the demonstration.

Facilities in the area operated by Robert Wiseman Dairies, which is owned by Muller, were also targeted.

Those protesting in Shropshire said Friday’s action was another reminder that supermarkets and dairies have an obligation to ensure their suppliers are paid above cost of production. They said the dairy supply chain code of practice, the main body of which has been agreed upon, and reversal of cuts intended to come into force in August are not enough to ensure sustainable milk prices and that the supply chain needs a dramatic overhaul.

Farmers have said their situation is a desperate one, and that some of their counterparts in the dairy industry are “going to go bust [as] they’re getting paid about 25p per litre,” which is 5 pence below the estimated cost of production. The protestors are also seeking the reversal of price cuts introduced in May.

FFA has threatened further protests, including a 24-hour shutdown of a processing plant, if their calls are not heeded.  

Whilst dairy companies were initially silent on the subject of milk protests, a spokesperson for Muller said on Saturday that the company cannot raise prices, as milk prices are down across Europe, and described Friday’s action as “unlawful.” The spokesperson said, “We understand dairy farmers’ frustration and have no issue with peaceful protests. By contrast action which blocks roads is unlawful and serves no purpose but places an extra burden on staff.”

Paice urges action on voluntary code

In an effort to placate angry farmers, agriculture minister Jim Paice has called for the voluntary code of practice governing the sector to be implemented before the Livestock 2012 event, which will be held in Birmingham next month.  

Mr Paice said both sides, buyers and farmers, should strive to reach an agreement and that this will require compromise. He said that the code would be reviewed by ministers, but repeated that he would not legislate on the matter.

However, despite the existence of just such a voluntary code in the fresh produce sector, farming groups including the NFU have documented persistent inequitable practice in the groceries supply chain. This has led to moves towards the appointment of an ombudsperson to govern supply chain relationships, a process which retailers have resisted. Exactly how a voluntary code is expected to curtail exploitative practices without addressing the power relationships that exist in either supply chain remains to be seen.

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