Joint statement from NFUS, NFU, NFU Cymru and UFU

UK farming unions have called on greater UK and European assistance for troubled dairy farmers.

At this week’s Livestock Event in Birmingham, NFU Scotland, NFU, NFU Cymru and the Ulster Farmers Union met to discuss the on-going crisis in the dairy sector. They expressed joint concern that the ongoing depressed state of international markets is leading to a prolonged, difficult period for dairy farmers in the United Kingdom.

At the meeting there was unanimous unease that the weakening state of the Euro against Sterling is leading to farmers in Great Britain and Northern Ireland being more exposed to the current market trough than their key European competitors and that there needs to be increased support from the UK government to help farmers get through this difficult time.

The Unions called on Commissioner Hogan and the European Commission to launch an immediate review in to the intervention thresholds for dairy products.
In a joint statement, the Unions said: “EU farm Commissioner Hogan told MEPs this week that the focus of the European Commission must be to help farmers reap the benefit of long-term prospects in dairy. However, if the Commission fails to support European producers through the current difficulties then there will be far fewer family farms in place to enjoy these long term prospects.

“It is clear that UK unions are unified in our position that the European Commission must at least call for a review of intervention thresholds.

“When the current threshold was established the regulation called on the Commission to keep these thresholds under review, with developments in the cost of production to be taken in to consideration. The cost of production for milk has changed considerably in the intervening time but we have received nothing but rebukes and denial from Europe.”

The UK Unions were also of a view that farmers must have access to tools that protect them from long-term market volatility, stating that: “Farming unions have been heavily involved with research in to a futures market for milk in the UK. We know that futures markets work well in other sectors to allow farmers to better manage their cash flow against the volatility of international supply and demand. For this market to be established milk buyers must understand the benefit that it will bring to the stability of their own businesses as well as those of the farmers that supply them.

“To support the development of a futures market we must also look for transparent contracts to be established and maintained between farmers and processors. Moving towards greater collaboration within the sector will give greater understanding, stability and predictability.”

Additionally, the farming unions were concerned that a fair share of risk and reward was not being passed down from food service and retail to farmers.  

Pushing for fair play in the supply chain, the Unions stated: “The domestic supply chain is the primary market for our milk and dairy products. Yet our farmers are seeing their farm gate milk price reducing by as much as 50% because of global trends. To allow a sustainable future for the sector we need retailers and food service wholesalers to pass down a fair and equitable share of profit margins to their suppliers and the farmers who produce the milk.

“We would also like to see this bolstered by increased promotion of UK dairy products. We know that our consumers want to buy local and we believe that the responsibility for promoting the range of our domestic produce lies with the retailers who interact with our customers every day.”   

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Contact Bob Carruth on 0131 472 4006