27 August 2012

2 minute read

Europe

In a joint statement from the coalition NFU, NFUS, NFU Cymru, FFA, RABDF, WUF and TFA, NFU dairy board chairman Mansel Raymond said there were positive signs in the strengthening of global and domestic dairy markets, as a result of global supply tightening.

"There are some signs of improvement in the global market that would justify price increases" he said. "What's more, it's clear from recent media reporting of drought in the US that farmers' costs are rising significantly. The prices cuts made in May and June are still hurting; farmers need to see that money back into their businesses now.

"Milk buyers do have the opportunity before Livestock 2012 (incorporating the Dairy Event) to detail how they plan to give farmers the financial oxygen their businesses so desperately need.

"Looking to the medium term, milk buyers all have the opportunity to identify new ways of doing business with dairy farmers and their customers. We are working with all parties to agree the voluntary code, as laid down in the heads of terms during the Royal Welsh Show. Long term relationships, based on transparent and determinable pricing mechanisms, are vitally important to the future development of the British dairy industry.

"I firmly believe that dairy farmers also have the opportunity bring about change in the supply chain. The Coalition is calling on farmers to add their contact details to a database, to allow us to discuss and potentially build producer organisations. This will help to give farmers more strength and power to negotiate in what is a very tough and competitive marketplace."

Information on producer organisations will be available for farmers at the dairy event from Coalition members and there will be the opportunity to sign up to a database provided at the event on 4 and 5 September.

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