8 February 2011

The long-term future of the British dairy industry is at risk due to supermarkets pushing down the price of milk, says the Lord Bishop of Wakefield.

Over the past seven years I have focused on the issue of supermarket milk prices, and I even joined the picket line at the Arla Dairy in Leeds in the depths of winter.

The key issue is that the usually highly competitive supermarket chains are here acting effectively as a cartel, driving down the price they pay dairy farmers for milk.

Milk acts as a loss leader and it is clear that most people would be prepared to pay more for milk to secure the future of the British dairy industry.

One of the most serious offenders here is Asda, now part of the Walmart empire; ironically, Asda began as a co-operative of Northern Dairy Farmers (Associated Dairies).

The government has agreed to appoint a grocery adjudicator to address these serious issues and my intention is to press home the urgency of making such an appointment.

The Lord Bishop of Wakefield has been a Bishop since 2003 and entered the House of Lords in 2009.