July 19, 2011


Britain's milk price ranks lowest in Europe



Britain's lowest position on the EU's milk price league table is an embarrassment as it is plain wrong for British dairy farmers to be paid the least in Europe, according to NFU president Peter Kendall.


"They are receiving around GBX4/litre (US$0.06) below the EU average which is a disgrace. Something has to change", he said. "Volume production is finally turning a corner and, despite declining farmer numbers, average yields and efficiency are improving. UK producers want to expand their businesses, but market signals tell them to do the opposite."


He also added "The dairy industry urgently needs fair terms and conditions of trade and that is why the NFU is backing calls for a voluntary 'code of practice'. As part of our campaign we have been lobbying MPs and dairy processors to push for the introduction of fairer contracts."


"We believe these will deliver negotiating strength and price transparency to dairy farmers."


Mansel Raymond, NFU dairy board chairman, said "the position of the UK milk price that occupies the EU league table is nothing short of scandalous. The clear fact for all to see is that equitable transmission of price and margin in the supply chain is not happening."

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