Milk price must rise further – dairy expert
Dairy processors must implement further rises to the milk price to avert further action from disgruntled farmers, a leading dairy expert has warned.
Ian Potter said dairy farmers were on the brink of a winter of discontent, given the current pricing situation allied with rising feed costs.
He called on one of the three main processors – Müller-Wiseman, Dairy Crest or Arla Foods – to break rank and relieve the anxiety of dairy farmers by announcing further prices increases.
“Dairy farmers have had milk prices increases of late, but it isn’t enough. They are punch-drunk and feel that they are being clobbered from all directions,” said Mr Potter.
“There are three main processors and someone has to push on. Wiseman’s has said they are not going to raise prices first, so maybe the best hope is with Arla?
“Dairy farmers are expecting an increase in the milk price of 2p/litre to about 31-32p/litre by 1 December, or 1 January next year at the very latest.
“Farmers for Action and the middle market farmers are getting itchy feet. They want to see something happen. There are people out there who have an appetite and will be sounded out for demonstrations unless something is resolved now.”
Cash-strapped dairy farmers were struggling to pay rising bills this autumn and the recent spikes in milk prices were not enough, he added.
“However you look at it, this industry has a real problem at price level,” said Mr Potter.
“UK dairy farmers feel that when prices do go up, it is very slow. It just does not feel that the market is working for them.”
With milk supplies reduced by poor weather and forage, supplies were down by 5% in September.
Mr Potter said the shortage was “driving up the marketplace” and leading to stronger demand for milk.
“There are liquid milk buyers who are contracted to buy milk from cheese processors who were paying 38p/litre – they are short of milk,” he explained.
As a result, dairy farmers were expecting to receive a rise in the farmgate milk price of at least 2p/litre above the current average price of 30p/litre, Mr Potter said.
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