On target:

Milk

NFU Scotland – fighting for your interests

• Farmgate Milk Price
  NFU Scotland lobbying to secure a sustainable farmgate milk price has started to produce results.   Last year, retailers increased milk prices with a view to returning more money to farmers.   We need to ensure that this happens and that the principle of recognising on farm costs is extended to those supplying them with all UK produced dairy products.   We have also welcomed liquid milk contract developments which recognise costs of production and divorce farmgate prices from commodities.  We also are driving the industry to recognise buoyant markets undermined by soaring costs.
  
  
• Supermarket Code of Practice
  The NFU Scotland Milk Committee has been leading this issue.   We have been to Holyrood and Westminster to press the case for the need for the Supermarket Code of Practice to redress the imbalance of power in the supply chain and, if this cannot be achieved, a retailer regulator is required. Following NFUS evidence, the Competition Commission’s initial report recognised UK dairying and examined aspects such as farmer numbers, income and the experiences of processors. It commented: "The benefit of increases in the retail price of milk since 1999 have generally been retained by retailers, increasing their share of milk revenues compared with dairy farmers and processors, and we are concerned to understand why this has been the case".   The latest report suggests an industry ombudsman is a possible outcome.
  
  
• Action On Milk Price
  NFU Scotland continues to fight for the right for dairy farmers to receive a sustainable milk price above the true cost of production, which would allow the producer a fair living and the opportunity to invest in his business.   This has been the backbone of the Union’s Fight for Fair Trade campaign which has seen thousands of members of the public take our message straight to Scotland’s First Minister.
  
  
• Who’s Creaming Off the Profits
  We launched a campaign entitled “Who’s Creaming Off the Profits?” which points out that supermarkets are making around 10p per litre profit on every litre sold which producers are losing 4p per litre on each litre produced.   The campaign asked consumers to identify the supermarkets they shop at and calls on those supermarkets to pay farmers a fair price for the milk.   More than 5000 leaflets were signed and were been delivered to major retailers.   We are meeting with all major retailers on milk issues this spring.
  
  
• Hard Cheese
  NFU Scotland is calling on all supermarkets to source all their cheddar requirements for the UK and properly label any imports with country of origin labelling.   The message states “If you want to make a Scottish dairy farmer smile, don’t just say cheese, say Scottish cheese!”

March 2008

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