NFU Scotland has taken part in two important dairy meetings today, seeking a more co-ordinated approach to the unprecedented crisis currently leaving the vast majority of Scottish dairy farmers receiving an unsustainable price.

At a dairy summit in Edinburgh, called by Scottish Government, the Union was represented by Vice President Andrew McCornick and Wigtownshire dairy farmer Rory Christie.  The Union’s Milk Policy Manager George Jamieson set the scene on the way forward for Scotland’s beleaguered dairy sector at the meeting.

The Union’s milk committee chairman, Graeme Kilpatrick attended a UK–wide meeting at Stoneleigh in Warwickshire, where he met with dairy representatives of other UK farming Unions and the levy body AHDB Dairy. Other stakeholders, including bankers and dairy consultants also attended.

Speaking after the Scottish dairy summit, Mr Jamieson said: “It was inherent on all those participating in these meetings to recognise the seriousness of the current situation.  If we leave Scottish dairy farmers entirely exposed to market forces and the status quo, it will be disastrous and efficient dairy farming businesses will be lost.

“The reality is that the market will not recover quickly enough for some.  That means the supply chain must address this challenge collectively and ensure producers are paid a milk price that is as high as possible, rather than as low as some buyers think they can get away with. The volatile market cannot be managed but a fairer margin share can be addressed.

“At the Edinburgh meeting, NFUS proposed that Scottish Government initiates and facilitates a dairy crisis task force that would include key leaders covering finance, advisory and the supply chain.  

“We would want that focussed group to address the severe financial pressures on dairy, particularly in the short term, but also to drive innovative thinking longer term.

“We also need Scottish and UK governments, and all in the supply chain, to support initiatives such as the voluntary Code of Practice on milk contracts, the advancement of Dairy Producer Organisations and an effective Grocery Supply Chain Code that has links and relevance to the entire chain.  These must be seen as an opportunity not a threat. No progressive farmer, processor or retailer should have anything to fear from ‘good practice’.

“Trust in the dairy supply chain is at an all-time low and we must offer a route for progressive elements in the chain to thrive at the expense of those who are simply reactionary and who continue to prosper by driving through milk price cuts that only benefit their own margins.

“Short term, NFUS is promoting an effective route to appropriate financial and technical advice, via the Scottish Dairy Hub and has encouraged Scottish Government to make widely available a ‘mini Whole Farm review’ with a focus to help dairy farmers asses their financial position and assist discussions with creditors. In addition we propose that leading bankers with real ‘dairy’ knowledge work closely with advisors, local bank officials and dairy farmers.

“We also urged the Scottish Government to press on with ongoing work to encourage inward investment and brand building. Substantial investment in Scotland is increasingly crucial and we need tangible projects to inspire forward thinking and boost confidence.

“NFUS was also present at the stakeholder event in Stoneleigh. From both of today’s events, we need to see focussed action which will, as a priority, address the short term financial challenges and longer term build a sustainable future for dairy farmers.

“All players have a responsibility to ensure that dairy farmers are given the support and encouragement to survive and prosper. Futures markets give little hope of an early recovery in dairy commodity markets, so we need to have a concrete plan of action to manage this.”  

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Contact Bob Carruth on 0131 472 4006