The price of milk in UK supermarkets has fallen to levels which are unsustainable for UK dairy farmers, with prices dropping from £1.39 to just 89p. See DEFRA’s Forecasts of Farm Business Income by type of farm in England – 2014/15.
The NFU suggests that this is leading farmers to leave the industry with around 60 having left in December alone. Milk in supermarkets in the UK can now be cheaper than water and the price can be below the cost of production. In response MPs have called for an EU-wide review of milk prices.
Paul Brannen, MEP (above with North East MEP Jude Kirton-Darling) for the North East and Labour’s European Parliament spokesperson on agriculture and rural development, said:
“It is simply not fair for a dairy farmer to be paid less for a litre of milk than it costs to produce. We must collectively and speedily inject fairness into the relationship between dairy farmers, processors, supermarkets and, importantly, customers . . .
“We also want the UK government to write to the banks encouraging them to be as supportive as possible of dairy farmers during this difficult period, including making loans available.
“And in the longer term we want to see farmers working together more, in order to increase their clout in the market and move themselves up the supply chain, by investing in food processing and the production and marketing of processed products such as cheese and yoghurt, as this is where the money can be made . . .
“We are calling on the British consumer to ask probing questions of their supermarket manager, as they have done in the past about fairly traded products from the developing world, to find out if a fair price has been paid to the farmer for the milk we buy.”
Paul adds: “We want to see more powers given to the Groceries Code Adjudicator, whose role it is to ensure there is fair play between British food processors and retailers, so she can take action across the supply chain”.