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experts in the nutritional field to get the right facts out where it matters.
The Dairy Council also react to incorrect accusations that are thrown at the dairy sector at a fairly regular basis. We would amplify these messages out to consumers through our social media and consumer facing campaigns. Ultimately, and unfortunately, there are as many negative stories on dairy nutrition as there are positive, but rest assured the industry is doing all it can to get the right information out.
Q A
Over production is being blamed for the current crisis, but in actual fact production in the UK isn’t fluctuating – so what is the cause?
I wish there was a simple answer, but it is a case of supply and demand. It only takes a slight imbalance to cause huge changes either way in milk price. Currently a number of major dairy importers have closed their borders – Russia for political reasons, China as they’ve overstocked and the Middle East due to low buying ability linked to the low price of oil. The signals for dairy farmers worldwide were positive and the Russian ban a complete shock to the market.
UK production is up, last year was a record year for milk production, and we are currently ahead of last year on a weekly basis. But that’s only one issue – here in the UK the global market downturn has coincided with a pretty brutal retail price war with the price of everyday staples, such as milk and butter, slashed.
Q
Surely having so many different contracts and prices is making the industry very divided – how do you think this could be improved?
With more than 200 milk buyers in the UK contracts will vary greatly. There’s even variation of contracts within milk buyers which makes it even more complicated. I think farmers need to focus on making the most out of their individual contract rather than worry about a neighbour’s contract. The NFU has constantly called for fairer, more transparent milk contracts that share risk between the farmer and processor – indeed that was the whole aim of the voluntary code of conduct on contracts agreed by the NFU, NFUS and DairyUK a few years ago.
Not everyone will end up on a retailer aligned contract – indeed most own label milk at retail is already covered by some sort of arrangement – either COP or minimum pricing. We need to look at more end use contracts or better pricing schedules that are actually linked to the product the milk is destined for.
Q A
How is the NFU working with FFA and others in the industry?
We remain in regular contact with the FFA and other farmer organisations across the UK. I’ve regularly spoken in meetings with David Handley, Stephen Wyrill, the TFA’s chairman and Ian Macalpine from the RABDF over recent months.
I’m also in touch with the milk
chairmen at NFU Cymru, NFU Scotland and the Ulster Farmers Union. We agree on most issues, but there will obviously be points of difference. I think it’s vital we put across that united front when talking to Government, MPs, milk processors, retailers and other stakeholders. We also have a good relationship with AHDB dairy and look to continue developing this going forward as they put in place their new overall strategy.
Q A
Is the NFU having regular dialogue with processors and retailers and if so what impression are they giving about the next 6 - 12 months?
Here’s an interesting statistic for you – in August and September we met a retailer 31 times – that is every other day. These meetings weren’t all about dairy, obviously the NFU represents farmers across all sectors, but dairy was high on the agenda. This communication will continue. We also meet regularly with the main UK milk buyers and regionally meet with the smaller ones on a more ad-hoc basis. There is concern in the short- term, but positivity for the medium to long-term. There is also apprehension – what will the Muller Wiseman – Dairy Crest – Medina deal mean for supplying farmers and the industry as a whole? Needless to say the NFU will continue representing its members at all levels over the next six months and into the future.
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