A campaign to increase the price of raw milk by up to 3ppl appears to be making little progress. Farmers’ leaders from the NFU and Farmers For Action have called for an immediate price rise to reimburse dairy farmers for what they say are increasing supply chain costs.
However, progress at processor and retailer level is slow, with few negotiations having taken place and no price movement so far. Farmers For Action boss David Handley said: “All major retailers, middle ground retailers, discounters and cheese makers have reacted, and with no major negatives, but the big problem is no one is asking for the money.”
He said he was keen for an
additional 1.5ppl to be in farmers’ milk cheques by February, although he is likely to be disappointed.
Asda said it had not even had an approach from its sole supplier Arla. However, the processor said it had begun talks to recover inflationary pressures to its business of “just over 1p/litre from the market”.
Sainsbury said it was in the very early stages of discussions with processors.
“The intention is to determine our producers’ requirements and the impact it would have on the market.”
Tesco said it would look at the cost increases and discuss them with its suppliers.
Co-operative First Milk has written to customers on the back of a study which showed farmer costs had risen by 1.63ppl over the last 18 months.
However, it had not gone so far as to invoice its customers for additional money, it said.
Robert Wiseman Dairies said that if the initiative was to succeed, a more likely time would be March.
“We’re moving, forward but not at a pace,” it said.
Chris Walkland

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