Hundreds of dairy farmers attended the meeting at Market Drayton livestock market.
Mr Harrison told a packed audience: "There is more milk than market, demand is growing slower than expected and everyone from America to Europe has produced more milk. The Chinese economy has struggled due to the extension of the Russian trade ban.
“Dairy farms the world over are suffering and getting in a mess - some are riding it out better than others but no one in the world or Europe can produce at these prices.
“We must remember we are only 81 per cent self-sufficient in the UK for dairy. We are short of capacity in processing and the market is oversupplied. However, there is a huge potential market.
“The NFU represents farmers who have 10 cows to over a 1000 cows and I want all of you to prosper. It’s not the fault of larger farmers, spring calvers’, aligned producers. They are all small percentages of total milk production. Processors have asked for more milk and farmers have responded to market signals. To be fair to David Handley he was the only one who in the autumn was saying “cut back”. As individuals it may be right to increase production, but collectively today it is crazy and this is a fundamental problem in the dairy market.
“It’s not my job to tell you how to run your businesses. However, faced with the choice of increasing output to spread costs or reducing costs, by drying off and culling a few, by feeding a bit less and then reducing output, please choose the latter.
“We know there is more milk than the local market can take so if you’re thinking of expanding, don’t do it without talking to your milk buyer. If I ordered a load of fertiliser and I was sent two, I would be annoyed. If processors have more predictability in volumes or even fixed volumes we must demand more stability and predictability in pricing.
“As farmers we will have to learn to deal with some volatility in the markets. This is extreme and the strong pound is the final nail in the coffin. We have to get better at working together - don’t let processors dictate terms to us, we need to make sure we are well represented and have positive choices.
“Anyone supplying a private dairy or PLC should look into forming a Producer Organisation so that no one individual should get picked on and given notice. Have proper representation and discussions with milk buyers. We have a perishable product, 365 days a year, easy for others to push price cuts down on to us.
“Longer term we are pushing for more manufacturing capacity in the North West and Scotland where milk is in surplus and trying to develop tools like the American margin protection system or futures that can soften the troughs for those that want to.
“We know consumers want to support us. Mintel research has shown that the public would value nutrient enhanced milk and will pay more for the milk they buy.
“The NFU’s media team work hard on continuing to keep the plight of dairy farmers in the news. Coverage last week hit 178,000 Facebook users. So the message is loud and clear - the public feel great sympathy with dairy farmers and would be prepared to pay more to help out.
“We continue to meet all the retailers, food service and processors. This week I spent time with the Farming Minister George Eustice explaining how bad it is at the moment and the potential fallout."
We are asking Government to:
1. Ensure fairness in the supply chain through supporting and strengthening work of the Grocery Code Adjudicator
2. Encourage compliance with the Voluntary Code on milk contracts
3. Maintain call for Country of origin labelling on milk and dairy products at EU level and facilitate the development of an improved labelling code in the UK. We import 100,000t of cheddar and other dairy products. Consumers can make positive choices
4. Reduce regulatory burden on our dairy farmers
In Europe we are demanding an increase in intervention pricing and the Super Levy money collected in Europe is spent back in dairy.
We are asking processors/Dairy UK:
1. DairyUK to encourage best practice and fairness at processor level (through compliance with the Voluntary Code) transparency, more formulas and choice
2. We need processors to continue to promote UK dairy products and brands through national and export campaigns.
3. Review the processing capacity for dairy alongside market and farmer growth potential in different parts of the UK.
We are asking retailers/ End users of milk:
1. Bring to an end below cost selling/ discounting of milk at retail.
2. Develop longer term, direct relationships with British dairy farmers and promote this work to the public.
3. Abide by the GSCOP and ensure supplying milk processors are compliant with the Voluntary Code
4. Ensure as much of the dairy aisle as possible is sourced from Britain and Red Tractor.
We are asking the public to:
1. Choose British dairy products by looking out for the Red Tractor logo
We are asking dairy farmers:
1. Promote to the public why they should buy British – traceability, choice, quality, tradition and protecting the countryside. Iconic cows in fields and supporting the local economy.
2. Work together to form Producer Groups/ producer organisations supplying individual milk buyers or regionally
3. Utilise AHDB Dairy to help improve business efficiency and resilience – both by using current initiatives and by encouraging new work areas in future. No one can produce milk at 20ppl.
Mr Harrison comtinued: “I think as farmers we all understand the issues. There is no magic leaver to pull that will make it better. However, that doesn’t mean we should stop trying as organisations and as individuals. We can make a difference. We will get through this but it’s going to be incredibly painful. I can’t tell you when it’s going to end or what the fall-out will be. For some it will be the end and you need to make positive decisions - leave with dignity and with some cash. Everyone is different and we should make assumptions based on herd size or milk buyer or location.
“We all want to be part of a growing successful dairy industry but this is going to be a massive shakeout. We need to work together to ensure we come out the other side in some kind of shape to take advantage of any opportunities that are available in the future.”