15 July 2011
Dairy farmers in the West Country are now paid less for their milk than any others in the EU – and that is a scandal, according to regional leaders.
They are looking for better contracts and are hoping to enlist the support of MPs and MEPs in their campaign to improve prices.
English milk producers are, on average, now paid nearly 4p per litre less than their European neighbours, leading to calls for greater transparency in the food chain and better payments from the big retailers.
Payments in this country have been towards the lower end of the European league table for years, but they have now hit bottom of all 27 member states, at just 26.26p. The European average is 30.02p.
“The position the milk price now occupies in the EU league table is nothing short of scandalous,” said farmer Paul Griffith, chairman of the South West Dairy Sector Board. “The clear fact for all to see is that equitable transmission of price and margin in the supply chain is not happening. Farmers are anxious to invest to expand as we head to the end of milk quotas. There is simply no excuse for procrastination or failure to pass on price rises to farmers. There has never been a clearer signal that things have to change. We have identified the weaknesses in most existing milk contracts. Let’s work together to put things right so we can look forward to a future of growth and profitability.”
The situation was a disgrace, said Ian Johnson, National Farmers’ Union spokesman for the South West. Payments were now less than in both Greece, which was virtually a bankrupt nation, and Romania, which was virtually a Third World nation, he stressed. He said: “It’s just plain wrong. Volume production is finally turning a corner and average yields and efficiency are improving. Producers want to expand their businesses, but market signals tell them to do the opposite.”
The dairy industry urgently needed fair terms and conditions of trade and a code of practice – and was lobbying MPs and dairy processors to push for the introduction of fairer contracts, he said.
The support of MEPs, too, was sought, and South West MEP Giles Chichester, recently appointed vice president of the European Parliament, was being asked to help.
“Supporting our dairy farmers in finding a way forward would be an early way for him to show his resolve,” said Mr Johnson. “Unless we can find a way for our dairy farmers to get a fair return on their investment it’s difficult to see how they’ll be in a position to rise to the challenge of providing for an expanding population.”