January 29, 2009
Wiseman Dairies to cut milk payment
Scotland-based Robert Wiseman Dairies has announced it would be cutting milk payments to farmers by 2.2p per litre.
Wiseman's decision follows other dairy companies such as Arla and First Milk, who have cut milk payment to farmers by 2p and 1.25p, respectively. The price cut also indicates the ailing state of the dairy industry, which is struggling to cope with the current worldwide economic crisis.
Dairy producers are disappointed by the price cuts, said George Jamieson, Milk Policy Manager for the NFU.
Jamieson noted that of the main local buyers, Lactlis and Milk Link have managed to hold prices despite the pressure on milk commodity prices.
Jamieson further said that this indicates the margins of processors and retailers are being protected at the expense of producers.
Member of Parliament (MP) Russell Brown has backed the call of other MPs for the Scottish government to hold a summit over the price cuts.
It's astonishing that the price cuts are imposed at a time when milk production is at a 40-year low, and it's vital that milk retailers, producers and politicians get together to discuss action to address the concerns over falling prices in the current market, said Brown.
