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RABDF Calls For Immediate Milk Price Rise

25 May 2010

UK - Strengthening world markets have led the Royal Association of British Dairy Farmers to call for processors to pass those improved returns back down the supply chain to enable farm gate investment and subsequently ensure a future supply base.

“Optimism in the world marketplace is currently high, famers are aware that EU commodity prices are on the increase and they are expecting to see improved returns over the summer,” explains RABDF chairman, David Cotton.

“Processors have been posting some healthy profits in the last couple of weeks, however those trends are not yet apparent at the farm gate. If producer prices don’t improve soon, then some major questions will be asked over whether processors actually want to retain the suppliers that remain,” he says.

“Farmers must have sufficient surplus to reinvest on farm in order to enable the industry to develop and expand so that it can continue to supply consumers with the high quality milk and British dairy products that they enjoy. We are well aware that the cost of production is still rising, and the milk price needs to do the same. If farmers are unable to reinvest when markets are healthy, then there will be further question marks raised over the future. It’s over to processors to provide confidence to the sector from immediate effect.”

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