McLaren Hopes Industry Can Build On Tesco's Milk Deal
UK - Berating supermarkets for providing their shareholders with increased dividends will bring little benefit to farmers, according to Jim McLaren, the president of NFU Scotland (NFUS).
19 April 2007
2 minute read
The announcement two weeks ago that Tesco was willing to guarantee an ex-farm price of 22p per litre was the catalyst for yesterday's press conference in Edinburgh. That firm commitment from the UK's leading supermarket chain was welcomed by McLaren, but he was keen to stress the wider implications.
He said: "I am getting fed up of the blame game. Persuading Tesco to pay more for milk is just the start, and it is going to cost that company money, albeit not that much in terms of the recent profit figures. This may prove to be a turning point in that there is a growing recognition that, unless everyone in the chain gets a fair deal, then future supplies could be at risk. But we have to walk before we run and take others on board along the way and attempt to forge direct links. We in NFUS certainly believe it can be done."
The Tesco deal on milk, which will impact on 850 producers throughout Great Britain and around 70-90 in Scotland, is unique. Effectively, the processing sector will have no say in the price farmers receive. But they will be paid for collecting, processing and delivering that milk to selected outlets. Sainsbury has indicated it will follow this pattern, both through Arla and Robert Wiseman Dairies.
Several milk buyers have also indicated that they have struck deals with the four major supermarket chains, but it remains unclear just how much of the increased retail price will filter through to those who actually milk the cows. The general impression is that most producers, apart from those signed up to specific deals, will be lucky to achieve an increase of more than 1p per litre.
Source: Scotsman
