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Farmers hold milk price protest Dairy farmers 'pushed to brink' with price cuts
(about 2 hours 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 have been "pushed to the brink" by cuts to the price of milk, a farmers' union representative has told a summit.
Farmers say the cuts by four dairy processors of up to 2p a litre will see them lose thousands of pounds a year. About 2,000 farmers gathered in London to protest at the latest cuts by processors of up to 2p a litre.
The companies have blamed falling commodity prices for their cuts. The NFU's Meurig Raymond said: "Society has to recognise what these dairy farmers have been put through by a market place that doesn't work".
Agriculture Minister Jim Paice said he was close to getting agreement on a revised voluntary code for dairy contracts from the milk processors. The government said it hoped to see a "fair deal".
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. Agriculture Minister Jim Paice said he was close to getting agreement on a revised voluntary code for dairy contracts from milk processors.
The cuts would be felt by 27% of dairy producers, and 25% of the milk market volume, farmers' union NFU says. Mr Paice 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". Four leading dairy processors have announced the latest cuts - applied 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 NFU wants an immediate reversal of the cuts and the resignation of those involved. They blame falling commodity prices.
"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. The cuts would be felt by 27% of producers, and impact on 25% of the milk market volume, farmers' union NFU said.
Mr Raymond called for the cuts to be reversed, saying: "These latest cuts are the feed bills, the wages, the housekeeping and will take us well into loss-making territory, with many farmers losing up to 6p per litre."
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."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. He was given a standing ovation after saying: "My final message is to retailers, processors, government and loyal consumers: It's time to back our dairy industry."
The cuts would not affect farmers who supply Tesco, Sainsbury's, Marks & Spencer or Waitrose as they are paid directly by the supermarkets. The NFU said an average farmer, with about 150-200 cows, would lose about £37,000 in revenue from the combined effect of cuts in May/June and August.
He warned that a mass exodus from the dairy industry would see consumers "paying a lot more" in three or four years. Those cuts would not affect farmers supplying Tesco, Sainsbury's, Marks & Spencer or Waitrose as they are paid directly by the supermarkets.
Mr Paice told about 2,000 farmers at the summit in Westminster that he was "tantalisingly close" to a deal on a revised voluntary code for dairy contracts after a meeting with milk processors on Wednesday morning. The government has announced an additional £5m from the rural economy grant scheme to help dairy farmers become more competitive, Prime Minister David Cameron said.
Meanwhile, the government announced an additional £5m from the rural economy grant scheme to help dairy farmers become more competitive, Prime Minister David Cameron said.
He also said he wanted to see a "fairer deal" between farmers and supermarkets.He also said he wanted to see a "fairer deal" between farmers and supermarkets.
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 suffered "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 above the market price charged by suppliers.
The Co-operative said it had other measures in place - such as access to cut-price power - to help farmers reduce production costs. Cheshire-based farmer Stuart Yarwood said: "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."
But some farmers voiced concern at the pricing policy of the large companies. Brian Dalby, who has farmed near Lutterworth, Leicestershire, for 40 years, warned: "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.
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."
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.
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.