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Dairy farmers target Morrisons in protest at milk prices Dairy farmers target Morrisons in protest at milk prices
(about 1 hour later)
Morrisons faces a day of action on Thursday by dairy farmers angry at milk price cuts they say are forcing them out of business.Morrisons faces a day of action on Thursday by dairy farmers angry at milk price cuts they say are forcing them out of business.
The protests – outside the supermarket’s distribution centres – come as farmers prepare for wider action on Friday with a “trolley dash” in which they hope to clear supermarket shelves of milk up and down the country.The protests – outside the supermarket’s distribution centres – come as farmers prepare for wider action on Friday with a “trolley dash” in which they hope to clear supermarket shelves of milk up and down the country.
Related: Supermarket price war takes toll on UK food suppliersRelated: Supermarket price war takes toll on UK food suppliers
The co-ordinated action from Scotland to Devon and Cornwall will ramp up pressure on supermarkets and milk processors after several days of local protests by farmers who have been emptying supermarket shelves of milk – sometimes taking along their cows – and distributing it to charities.The co-ordinated action from Scotland to Devon and Cornwall will ramp up pressure on supermarkets and milk processors after several days of local protests by farmers who have been emptying supermarket shelves of milk – sometimes taking along their cows – and distributing it to charities.
David Handley, a farmer from Monmouthshire in south Wales who chairs the Farmers for Action group which has been behind most of the trolley dash protests, said: “There’s a crisis. People are selling the core of their business just to pay bills and the banks. It’s also a crisis for the consumer. They wish to buy British but if we don’t address this situation that’s going to be taken away from them by corporate greed.” David Handley, a farmer from Monmouthshire in south Wales who chairs the Farmers for Action group that has been behind most of the trolley dash protests, said: “There’s a crisis. People are selling the core of their business just to pay bills and the banks. It’s also a crisis for the consumer. They wish to buy British but if we don’t address this situation that’s going to be taken away from them by corporate greed.”
Asda, Morrisons, Aldi and Lidl have been targeted because, unlike major rivals Sainsbury’s and Tesco, they do not guarantee a price for milk that covers the cost of production.Asda, Morrisons, Aldi and Lidl have been targeted because, unlike major rivals Sainsbury’s and Tesco, they do not guarantee a price for milk that covers the cost of production.
Morrisons has said it would not negotiate with Farmers for Action while it is being targeted by protests.Morrisons has said it would not negotiate with Farmers for Action while it is being targeted by protests.
Related: Dairy farmers’ despair: ‘now milking doesn’t really make economic sense’Related: Dairy farmers’ despair: ‘now milking doesn’t really make economic sense’
The Bradford-based supermarket said it was disappointed by disruption in its stores but it had agreed not to seek further reductions in milk prices and would continue to talk with the National Farmers Union. “We recognise that the current issue is being caused by a reduction in global demand for milk that has led to an over-supply in the UK and very difficult conditions for many dairy farmers,” a spokesman said. The Bradford-based supermarket said it was disappointed by disruption in its stores but it had agreed not to seek further reductions in milk prices and would continue to talk with the National Farmers Union. “We recognise that the current issue is being caused by a reduction in global demand for milk that has led to an oversupply in the UK and very difficult conditions for many dairy farmers,” a spokesman said.
The NFU said Morrisons needed to go further to develop long term relationships with suppliers which would help support dairy farmers. The NFU said Morrisons needed to go further to develop long-term relationships with suppliers that would help support dairy farmers.
Handley said: “I think a line has been drawn in the sand and am sure I speak on behalf of the majority of farmers when I say we are not going to be bullied by British retailers.” Handley said: “I think a line has been drawn in the sand, and am sure I speak on behalf of the majority of farmers, when I say we are not going to be bullied by British retailers.”
Global dairy prices have been falling for months as good weather has helped boost production just as demand has been dented by a Russian ban on importing dairy goods from Europe and a decline in sales to China.Global dairy prices have been falling for months as good weather has helped boost production just as demand has been dented by a Russian ban on importing dairy goods from Europe and a decline in sales to China.
But protests began in the UK this week after three major milk processors – Arla, First Milk and Dairy Crest – all said at the weekend they would cut the price they pay farmers. Farmers were paid an average 23.66p per litre in June, down 10% since January and a quarter lower than a year ago, according to AHDB Dairy, the British dairy organisation. Farmers say it costs them around 30p to produce each litre.But protests began in the UK this week after three major milk processors – Arla, First Milk and Dairy Crest – all said at the weekend they would cut the price they pay farmers. Farmers were paid an average 23.66p per litre in June, down 10% since January and a quarter lower than a year ago, according to AHDB Dairy, the British dairy organisation. Farmers say it costs them around 30p to produce each litre.
Related: Fine supermarkets if they have unfairly squeezed milk suppliers, say MPsRelated: Fine supermarkets if they have unfairly squeezed milk suppliers, say MPs
UK farmers say they are particularly suffering because of a supermarket price war and a lack of capacity to process milk into other products during gluts. They say they are particularly suffering because of a supermarket price war and a lack of capacity to process milk into other products during gluts.
“We are in no doubt that the current issues are exacerbated by factors unique to the UK,” said a joint statement by farmers unions in England, Scotland, Wales and Northern Ireland. “These include dysfunctional supply chains, [the] predominance of the major retailers and subsequent price war.” “We are in no doubt that the current issues are exacerbated by factors unique to the UK,” said a joint statement by farmers’ unions in England, Scotland, Wales and Northern Ireland. “These include dysfunctional supply chains, [the] predominance of the major retailers and subsequent price war.”
The NFU says only 10% of dairy farmers are on contracts which track the cost of production and most are selling milk at a loss. Even the contracts backed by Tesco and Sainsbury’s, which promise to pay farmers at least the cost of production for liquid milk, do not cover other dairy products such as yoghurt or cream. The NFU has called for a meeting with government farming ministers. The NFU says only 10% of dairy farmers are on contracts that track the cost of production and most are selling milk at a loss. Even the contracts backed by Tesco and Sainsbury’s, which promise to pay farmers at least the cost of production for liquid milk, do not cover other dairy products such as yoghurt or cream. The NFU has called for a meeting with government farming ministers.
A spokesman for Arla, which is a co-operative organisation, said it was “doing everything possible to help our farmer owners to navigate through this increasingly tough situation, in the best possible way”. A spokesman for Arla, which is a co-operative organisation, said it was “doing everything possible to help our farmer-owners to navigate through this increasingly tough situation in the best possible way”.
Dairy Crest, which is the process of selling its loss-making liquid milk processing business, said it had been forced to cut prices because the glut in the market meant it was having to process the milk into powder and cream.Dairy Crest, which is the process of selling its loss-making liquid milk processing business, said it had been forced to cut prices because the glut in the market meant it was having to process the milk into powder and cream.