Ombudsmen Arrives at Milk Price Formula01 May 2013
FRANCE – After a protracted consultation process across all dairy sector stakeholders, the Ombudsman in charge of mediating a sustainable market structure has arrived at a minimum per litre price of €25.
The new prices will be ensured for farmers and come into force this week with adherence being required from all stages of the supply chain.
The announcement follows concerns over the safety of the industry’s future regarding milk pricing structures that meant farmers were receiving a price for their milk that was below production cost.
So far in 2013, mounting pressure has been applied to the government by farmers unions and associations. Lobbying led to the government appointment of an Ombudsman, entrusted in formulating a price that would be satisfactory across the entire dairy supply chain.
“The industrial action of the National Federation of Farmers Unions(FNSEA), Young Farmers and other dairy specific groups is seeing its first concrete results with the announcement of an increase of €25,” said Dominique Barrau, FNSEA Secretary General. “It is good news but we can’t rest on our laurels, we still remain focused.
Decisive action from the Ombudsmen to address the ‘imbalance’ in trade between milk retailers and suppliers will mean farms are saved, added Mr Barrau who stated the importance of immediate price increases.
The Prime Minister and Stephane Le Foll, the Minister of Agriculture, have both supported the announcement, praising the Ombudsmen for realigning the industry in keeping with the global price of dairy products.
Under the price structures milk for processing will rise 2 cents per litre with liquid milk seeing a 3 cents per litre lift.
All stakeholders are urged to confirm their approval to the regime immediately so the changes can be introduce in the early in May.
TheCattleSite News Desk