The government has pledged to look into how milk is bought and sold in the UK.
The announcement by Lord Bach, the new minister for sustainable farming and food, came as cracks began to reappear in the supply chain after a decision by Arla to reduce the price it pays farmers for milk (see story below right).
Lord Bach, speaking at a Food Chain Centre conference in London, said: “One of my main and early priorities is to look with fresh eyes at the dairy supply chain. All those in the chain, including processors and retailers, have to recognise that there is a need for a sustainable UK-based dairy supply chain.
“They have to realise it is not
in their interest, in the short, medium or long term, to squeeze suppliers to the point of elimination.”
A Defra spokeswoman said Lord Bach, who replaced Lord Whitty after the last general election, was “particularly fascinated” by the dairy industry. But she would not say whether he would launch a full-scale inquiry into the supply chain. Asda’s agriculture manager, Chris Brown, said the retailer would co-operate with any investigation. “We’ll help in any way we can,” he said.
Gareth Vaughan, president of the Farmers’ Union of Wales, called on the government to introduce legislation to force supermarket chains to deal more fairly with their suppliers.
“Dairy farmers are receiving less than the cost of production for their milk. The supermarket giants and processors blame each other, but it’s the farmers who suffer at the end of the day.”
Meanwhile, reports from Brussels suggest that officials in the European Commission’s DG Competition are also looking into the dairy supply chain on a Europe-wide basis.
Richard Clarke
The announcement by Lord Bach, the new minister for sustainable farming and food, came as cracks began to reappear in the supply chain after a decision by Arla to reduce the price it pays farmers for milk (see story below right).
Lord Bach, speaking at a Food Chain Centre conference in London, said: “One of my main and early priorities is to look with fresh eyes at the dairy supply chain. All those in the chain, including processors and retailers, have to recognise that there is a need for a sustainable UK-based dairy supply chain.
“They have to realise it is not
in their interest, in the short, medium or long term, to squeeze suppliers to the point of elimination.”
A Defra spokeswoman said Lord Bach, who replaced Lord Whitty after the last general election, was “particularly fascinated” by the dairy industry. But she would not say whether he would launch a full-scale inquiry into the supply chain. Asda’s agriculture manager, Chris Brown, said the retailer would co-operate with any investigation. “We’ll help in any way we can,” he said.
Gareth Vaughan, president of the Farmers’ Union of Wales, called on the government to introduce legislation to force supermarket chains to deal more fairly with their suppliers.
“Dairy farmers are receiving less than the cost of production for their milk. The supermarket giants and processors blame each other, but it’s the farmers who suffer at the end of the day.”
Meanwhile, reports from Brussels suggest that officials in the European Commission’s DG Competition are also looking into the dairy supply chain on a Europe-wide basis.
Richard Clarke
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