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Milk price rises hide contract pressures

05 Oct 2011
North East dairy farmers are right behind calls for milk buyers to play fair when it comes to announcing farmgate price rises this autumn.

NFU regional dairy board chairman David Shaw says the headline rises seen in recent weeks are not all they appear and have significant strings attached.

“We have been contacted by a number of members across the region who are being offered a higher milk price – but only in return for achieving higher quality standards,” he said. ““In some instances, the increases are being linked to quality improvements impossible to achieve for at least three months.

“Most farmers we speak to have no problem with working to achieve higher standards, but yet again they are being subject to contract changes without any consultation or prior notice. The increased price they so desperately need is dependent on them accepting the changes and they have no right to redress nor can they renege on the contract.”

Dairy producers across the North East have spent the much of the summer campaigning for better contracts across the board. Having taken a farmer delegation to Westminster in June, follow-up on-farm meetings have now been held with several MPs and more are planned.

“The European Commission, European Parliament, Defra Minister Jim Paice and Efra Select Committee all say contracts need to change to redress the balance of power in favour of farmers,” added David.

“We need to give farmers the confidence to invest in the future and, for this to happen, meaningful and sustained price rises need to come through this autumn.

“It is simply unacceptable for key conditions such as a farmer’s pricing schedule to be changed, without due consultation and agreement, or without releasing them from the notice period of the contract.

“The news of price rises is of course welcome, especially as production costs are at an all-time high, and I commend all buyers who have offered unconditional and transparent increases to their base price.

“But to those processors that haven’t, my message is clear - farmers deserve balanced and fair contracts and now is the time to offer them.”
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