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Farmers hold milk price protest | Farmers hold milk price protest |
(39 minutes later) | |
Dairy farmers from across the UK are holding a protest at Westminster against planned cuts to the payments they get for their milk. | Dairy farmers from across the UK are holding a protest at Westminster against planned cuts to the payments they get for their milk. |
Farmers say the cuts by four dairy processors of up to 2p a litre will see them lose thousands of pounds a year. | |
The companies have blamed falling commodity prices for their cuts. | The companies have blamed falling commodity prices for their cuts. |
Agriculture Minister Jim Paice has warned that the retail price of milk might have to be increased. He is currently addressing farmers. | Agriculture Minister Jim Paice has warned that the retail price of milk might have to be increased. He is currently addressing farmers. |
Four leading dairy processors have announced cuts to come into force from 1 August: Robert Wiseman Dairies and First Milk have both cut the pence per litre (ppl) price by 1.7; Arla Foods UK by 2.0ppl and Dairy Crest by 1.65ppl. | |
The cuts would be felt by 27% of dairy producers, and 25% of the milk market volume, farmers' union NFU says. | |
Mr Paice, who had been caught out not knowing the price earlier this week, said the average price of a pint was 49p, of which 16p went to the farmers, and the price cuts were "a massive burden for the vast majority of dairy farmers". | Mr Paice, who had been caught out not knowing the price earlier this week, said the average price of a pint was 49p, of which 16p went to the farmers, and the price cuts were "a massive burden for the vast majority of dairy farmers". |
The NFU wants an immediate reversal of the cuts and the resignation of those involved. | |
"The latest round of cuts to milk prices... will mean dairy farmers are making a significant loss for every litre of milk they produce," NFU vice-president Adam Quinney said. | |
Around 40 coaches arrived just before the summit started, carrying around 2,000 farmers. Many were from small family farms who have left their business for the day, stopping work, so they can voice their anger at the latest price cuts to milk. | Around 40 coaches arrived just before the summit started, carrying around 2,000 farmers. Many were from small family farms who have left their business for the day, stopping work, so they can voice their anger at the latest price cuts to milk. |
I spoke to one farmer's daughter, who had dressed up as a cow in protest. She told me her father will have to hang up his boots if things don't change. | I spoke to one farmer's daughter, who had dressed up as a cow in protest. She told me her father will have to hang up his boots if things don't change. |
Many I spoke to were desperate for the dairy farm industry to change. One farmer from Oxfordshire had a banner comparing the price of a pint of water (£1.50) to the price of a pint of milk (86p). "It's ludicrous", he told me, "we won't have a dairy industry in 12 months, unless our voices are heard." | |
Mr Quinney said farmers would lose £350 to £400 per cow per year, and the NFU said an average dairy farmer, with about 150-200 cows, would lose about £37,000 in revenue. | |
The cuts would not affect farmers who supply Tesco, Sainsbury's, Marks & Spencer or Waitrose as they are paid directly by the supermarkets. | |
He warned that a mass exodus from the dairy industry would see consumers "paying a lot more" in three or four years. | He warned that a mass exodus from the dairy industry would see consumers "paying a lot more" in three or four years. |
Mr Paice, who is addressing farmers at the summit in Westminster, said: "The price in the shops isn't really high enough to compensate for all the costs in the food chain," he said. | Mr Paice, who is addressing farmers at the summit in Westminster, said: "The price in the shops isn't really high enough to compensate for all the costs in the food chain," he said. |
"The reality is that if milk producers do go out of production... then we'll end up with a price hike... because liquid milk isn't readily imported and if there's a shortage it will go up." | "The reality is that if milk producers do go out of production... then we'll end up with a price hike... because liquid milk isn't readily imported and if there's a shortage it will go up." |
Mr Paice said he supported the right of farmers' to protest at Westminster but warned against "militant" action. | Mr Paice said he supported the right of farmers' to protest at Westminster but warned against "militant" action. |
Meanwhile, the government is announcing an additional £5m from the rural economy grant scheme to help dairy farmers become more competitive. | Meanwhile, the government is announcing an additional £5m from the rural economy grant scheme to help dairy farmers become more competitive. |
Dairy Crest said it was doing all it could "to reduce the effect of the downward pressure from the market place on the milk price that we pay to our farmers". | Dairy Crest said it was doing all it could "to reduce the effect of the downward pressure from the market place on the milk price that we pay to our farmers". |
Cost-cutting measures included redundancies and the likely closure of two of its dairies, it said. | Cost-cutting measures included redundancies and the likely closure of two of its dairies, it said. |
In a letter sent to farmers on 2 July, Arla said the company's performance had been suffering "primarily as a result of the ongoing impact of depressed commodity prices". It has cut its headcount and marketing spend. | In a letter sent to farmers on 2 July, Arla said the company's performance had been suffering "primarily as a result of the ongoing impact of depressed commodity prices". It has cut its headcount and marketing spend. |
Robert Wiseman Dairies said its price cut followed "a collapse in the value of the cream in each litre of farm-gate milk over the last 12 months". | Robert Wiseman Dairies said its price cut followed "a collapse in the value of the cream in each litre of farm-gate milk over the last 12 months". |
Supermarket chains Asda, Morrisons and the Co-operative said they paid a premium to farmers above the market price charged by their suppliers. | Supermarket chains Asda, Morrisons and the Co-operative said they paid a premium to farmers above the market price charged by their suppliers. |
The Co-operative said it had other measures in place - such as access to cut-price power - to help farmers reduce production costs. | |
But some farmers voiced concern at the pricing policy of the large companies. | |
Cheshire-based farmer Stuart Yarwood said: "It's costing us more to look after our cows and produce the milk than what we're being paid for". | |
"We are in a poor market place, we don't have any negotiation with the processors or the supermarkets because basically we have to take what we're given." | "We are in a poor market place, we don't have any negotiation with the processors or the supermarkets because basically we have to take what we're given." |
Brian Dalby, who has farmed near Lutterworth, Leicestershire, for 40 years, said the cuts had left farmers very worried. | Brian Dalby, who has farmed near Lutterworth, Leicestershire, for 40 years, said the cuts had left farmers very worried. |
"If the price doesn't change or these cuts aren't reversed - there will be a lot of people (who) go out of milk this winter," he said. | "If the price doesn't change or these cuts aren't reversed - there will be a lot of people (who) go out of milk this winter," he said. |
Some supermarkets sell non-organic milk for about 30p a pint, for larger bottle sizes. Single-pint bottles are offered at nearer 50p, with smaller shops often charging more. | Some supermarkets sell non-organic milk for about 30p a pint, for larger bottle sizes. Single-pint bottles are offered at nearer 50p, with smaller shops often charging more. |
Milk delivered to the doorstep costs consumers about 65p a pint. | Milk delivered to the doorstep costs consumers about 65p a pint. |
Are you a dairy farmer? Will you be taking part in today's protests? What is a fair price for milk? Send us your comments and experiences using the form below. | Are you a dairy farmer? Will you be taking part in today's protests? What is a fair price for milk? Send us your comments and experiences using the form below. |