Milk price dispute

A group of dairy farmers say they may have no choice but to cut the supply of milk, if price cuts go ahead. The people who buy the milk directly from the farmers want to cut the price by nearly 2p a litre.

Latest ITV News reports

Welsh Government responds to milk price agreement

I welcome this agreement... I hope that it will provide greater fairness and transparency in contractual arrangements across the sector. I am sure the industry as a whole will welcome the new Code and its potential to transform the way that business is done in the dairy industry.

It will be important that the operation of the new voluntary Code is kept under review as I want to see the Code deliver real change in the industry.

The dairy industry is of key importance to our economy and our Programme for Government specifically identifies dairy as a priority sector for attention and support. The plan for milk which I announced in July outlines Welsh Government support for the sector and I will be continuing discussions with industry in this regard.

– Alun Davies, Deputy Minister for Agriculture

Code of best practice agreed for dairy prices

The bodies representing farmers and milk processors have reached an agreement on a voluntary code of best practice over dairy prices.

Earlier this summer, Welsh farmers joined protests and blockades, angry at drops in the price they've been receiving for their milk.

It's believed the code of best practise will give dairy farmers more security against price fluctuation.

This important initiative builds upon existing arrangements, which give farmers and processors security in business relationships, whilst adding additional safeguards that will assure farmers that their contracts are not putting them at a disadvantage in the marketplace. The code should also enable dairy farmers and processors to build relationships of trust and mutual understanding. Only on this basis can the industry create the added value that will protect it from price volatility.

– Jim Begg, Dairy UK Director General

Advertisement

Milk premium rise comes into effect today

Cow being milked
An agreement between dairy farmers and the main dairy buyers comes into effect today. Credit: ITV News Wales

An agreement between dairy farmers and the main dairy buyers, including Dairy Crest, First Milk and Robert Wiseman Dairies, comes into effect today.

The agreement will mean the reversal of the proposed cuts to how much farmers are paid for their milk.

It follows a series of blockades by group Farmers for Action in protest of the prices they receive from suppliers for their produce.

It costs farmers around 30p per litre to produce milk, but most dairy farmers are still operating at a loss as they're being paid around 27p per litre.

Welsh dairy farmers say they must secure the long-term future for the industry, and call the current price is unsustainable.

The agreement means that the proposed cuts to 25p per litre that were due to take effect today will now not happen.

But farmer's unions say that still won't balance the books.

Milk premium rise comes into effect

Dairy cow being milked
An agreement between dairy farmers and the main dairy buyers comes into effect today. Credit: ITV News Wales

An agreement between dairy farmers and the main dairy buyers, including Dairy Crest, First Milk and Robert Wiseman Dairies, comes into effect today.

The agreement will mean the reversal of the proposed cuts to how much farmers are paid for their milk.

It follows a series of blockades by group Farmers for Action in protest of the prices they receive from suppliers for their produce.

It costs farmers around 30p per litre to produce milk, but most dairy farmers are still operating at a loss as they're being paid around 27p per litre.

Now Welsh dairy farmers say they must secure the long-term future for the industry, and call the current price is unsustainable.

The agreement means that the proposed cuts to 25p per litre that were due to take effect today will now not happen.

But farmer's unions say that still won't balance the books.

Advertisement

Load more updates