Fair Pricing Demanded on Cheese11 April 2013
SCOTLAND - Supermarket resistance against rises in the cheese market could result in milk going elsewhere.
This is the threat posed yesterday (April 10) by the Scottish dairy farmers in a reaction to some supermarkets making as much as 49 per cent gross on shop shelf values.
Despite that margin being made at the retail end, those same supermarkets are believed to be stubbornly preventing wholesale cheese prices from lifting to levels that recognises both the cost of production of milk on farms and the rising world demand for dairy products.
“Scottish and British cheddar is truly valued by our consumers," said NFU Scotland President Nigel Miller. "Its taste, quality and reliability ensure that they buy it in huge volumes every single day."
However, Mr Miller acknowledged that the possible mark up on cheese is 'significantly ahead' of the money that can be made on fresh milk.
He said that processor and farmgate share of cheese value is not viable or sustainable.
“Despite the considerable cost burden of producing milk being carried by all dairy farmers, the milk price paid to those supplying cheese contracts is under pressure and, in most cases, is below that of those supplying the liquid milk sector."
Mr Miller stated emphasised that export markets must be grown for British cheese whilst underlining the fact that major domestic retailers have the dominant role in sourcing and buying milk.
He concluded that supermarkets must be responsible in constructing a supportive buying policy so that milk producers and processors are not threatened.
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