Retailers have recently announced price changes and new initiatives, the government have admitted there is something fundamentally wrong in the supply chain and over 60% of the public have said they would be happy to pay more to ensure farmers get a good price.
NFU chief dairy adviser Sian Davies said today: “Many farmers in this sector are finding themselves in financially crippling times. We are in very regular talks with processors and retailers to see what they can do to alleviate some of the pressures short-term and it’s been brought to the attention of Defra in a UK farming unions meeting recently.”
Discussions with Morrisons are ongoing.
See the latest on the NFU’s activity on dairy here.
What Morrisons have announced already:
The retailer’s move to charge a 10p premium on a new line of its liquid milk and 34p premium on a line of its cheddar cheese will see more money going back to the farm supply base.
- A new minimum price paid to its milk processor
The retailer will have a floor price of 26p per litre across all liquid milk by the end of August.
What we need to see from Morrisons:
- Morrisons needs to further improve its sourcing across all its dairy products. The public overwhelmingly (85% in a 2015 survey – increasing from 79% in 2014) want to see supermarkets selling more food from British farms.
- A dedicated supply mechanism that pays a fair and transparent price for milk which goes into all dairy products.