NFU response
NFU dairy board chairman Rob Harrison said: “We are in a position now whereby the majority of dairy farmers in the UK will be receiving milk prices far below the cost of production. This is simply not sustainable.
“What we need is a guarantee from our milk buyers that they are doing all they can to get the best possible price from the market. But above all, we need the industry to work with us to develop a rigid and practical set of risk management tools that can benefit our farmers and support them with fair prices during a period of market volatility.”
On Sir Jim Paice...
NFU President Meurig Raymond said: “Jim has chaired First Milk through a very turbulent time for First Milk, its members and the entire dairy industry.
“We are pleased that First Milk is looking to the future in a number of ways including its external review of governance and the need to bring extra commercial acumen onto its board and its management team. We recognise that it has many challenges ahead and we will work closely with First Milk towards achieving a long-term sustainable dairy market.”
First Milk has announced a cut of 1ppl for A volumes from all milk pools from July 1.
The only exception is the Midlands Balancing pool which will see a 0.7 pence per litre reduction.
It was also announced that Sir Jim Paice will step down as chairman of First Milk.
He said: “As you will be aware from recent milk price announcements around the globe, commodity markets are continuing to decline. While the turnaround actions that have been taken over the last two months have improved our trading position, we also have to factor in the impact of lower commodity prices. I know this is further disappointing news, which I regret.
“With the turnaround programme now gathering pace and the timescales for an external review agreed, I believe the time is right to announce my intention to step down as chairman of First Milk.
“In my letter last week I said that I believe the board needs more people with real commercial and business skills. That means I think there has to be significant change in the constitution of the board, and that includes the chairman role.
“Signalling my intention to stand down allows the Board to immediately start work on scoping out the personal and professional qualities that they require in a new chairman, and initiating a recruitment process. In order to ensure an appropriate transition, I will stay in role until a smooth handover to a new chairman is achieved.”
NFU comment to follow...