October 14, 2009
EU milk war pressures British farmers
Protests against low milk prices by European dairy farmers are threatening producers in the UK.
A fresh wave of milk demonstrations is expected after EU ministers failed to come up with any new measures to support the dairy market.
Governments within individual member states were now under immense pressure, said National Farming Union (NFU) Dairy Board chairman Gwyn Jones.
In some countries, governments might be forced to grant their farmers' national aid, he told delegates at Woodland Grange, Warwickshire, on Tuesday (13 October).
But national aid in other European countries would not favour British dairy farmers, Jones added.
The NFU executive said the union was opposed to any return of supply chain management.
Retail contracts had helped to hold up UK milk prices. But processors were continuing to import significant amounts of cheap Irish cheese, penalising efficient UK grassland farmers in the process.
Selling cheese at GBP400 (US$637.45)/tonne below the cost of production was unsustainable, said Jones. But there were hopeful developments, such as Sainsbury's dedicated cheese line with Milk Link.
Meanwhile, Jones will give evidence to the House of Commons EFRA Committee inquiry into the collapse of Dairy Farmers of Britain on Wednesday (14 Oct).
More former DFoB suppliers were being offered contracts as the milk market recovered, he told delegates. But the NFU remains concerned about the cherry-picking by some companies of larger dairy farmers.
Jones also voiced dismay that some companies were continuing to pay farmers below the cost of production for milk.
US$1 = GBP0.62 (Oct 14)
