Milk processors and retailers have been urged to adopt a culture change and stop expecting farmers to bear the brunt of extreme volatility in dairy markets.
NFU Scotland has hit out at milk buyers and processors after many failed to give farmer suppliers an adequate price rise in line with rising dairy commodity markets on the back of falling supply.
Spot milk prices have risen to more than 30p a litre, however the majority of Scots dairy farmers are being paid less than 20p a litre.
The union’s milk committee chairman, Graeme Kilpatrick, said Scots dairy farmers have never faced more challenging financial times.
“The dramatic and welcome change in dairy markets means we have an urgent need to engage with milk buyers and retailers and ensure that there is no further time lag in the upturn being reflected in farmgate prices,” said Mr Kilpatrick.
“That has not been the case in the past and analysis has shown that farmgate prices are quick to fall but slow to recover, even when commodity prices have surged ahead. Sadly, some processors are already repeating the mistakes of years gone by.”
One processor in the firing line is the main milk buyer in the north and north-east – Muller – which has been subject to protests outside its site in Shropshire in recent days.
This follows the company’s decision to hold its milk price for September.
Mr Kilpatrick said the union was in the process of setting up meetings with supermarkets and processors to assess how they intend to respond to the dramatic changes in the milk market and drop in supply.
He called on individual farmers and those representing milk producer groups to lead and drive the discussion on prices with their buyer.
“I urge them to put aside any obsession about what another milk buyer may or may not be paying and focus attention firmly on how their buyer is responding,” added Mr Kilpatrick.
“As markets strengthen, farmers must also consider their options. The grass isn’t always greener elsewhere and not all in Scotland have an option on who to sell their milk to. However, there is much to be gained from working with a milk buyer who has a history of responsible engagement with their suppliers.”
Local Milk is Miles Better campaign
The Press and Journal is running a campaign to safeguard the future of north-east dairy farming.
The Local Milk is Miles Better campaign sets out to drum up demand for local milk and help build the business case for a new milk-processing factory to be built in the region.
It follows dairy giant Muller’s decision to close the only milk processing factory in the region.
At the moment all milk stocked in north-east supermarkets has travelled at least 100 miles before it reaches the shop shelves. It is not possible to buy milk which has been produced, processed and bottled in the Grampian region.
You can pledge your support to buy local milk if it becomes available by signing our online petition here.
