The UK dairy farmers are revolting for the unfair price allocated to their row milks. That is, the proportion of the price being paid by milk customers doesn’t actually reach on the hand of those producers – farmers.
Dairy products are very important for human being as they are the main sources of proteins, vitamins and minerals including calcium which is critical for bone and teeth growth. Therefore, they meant to be the main purchase of our daily life. The UK dairy farmers are revolting for the unfair price allocated to their row milks. That is, the proportion of the price being paid by milk customers doesn’t actually reach on the hand of those producers – farmers.
Milk price row has been a national issue in the UK in the last weeks. The row exhibited protests, blockades, discussion with suppliers and stores, etc. In the UK, eventhough the voluntary code of practice designed to give power to dairy farmers over milk prices, currently milk processing firms which buy milk from the farmers and sell it to the customers cut the price that they pay the primary producers for the milk. The National Farmers Union (NFU) believes milk price should be able to cover the cost of the production and also enabling to pay the main producers which are the farmers. The allocation of unfair prices on farmers is affecting the bargaining power they have in the market.
As the BBC political correspondent Alian Soady put itdespite the outcome of the talk, the protest by the farmers will continue. On Sunday the 22nd July more than 2000 farmers were blockaded in Shropshire, Summerset and Worcestershire regarding the change in price. There is a fear that dairy farmers might pushed out of the business for the reason that the cut in the price of selling the row milk to dairy processors with the imbalance of the higher feed cost.The report by BBC has shown that Robert Wiseman Dairies and first milk are cutting price by 1.7 ppl, Dairy crest by 1.6ppl and Arla foods UK by 2ppl. Meanwhile, the milk processors are claiming that the reason for the cut of the price for the milk is directly associated with the reason that the price for cream in the world has fallen from £1800 per tonne in June 2011 to £1020 in 2012. The problem came as there is a lower demand for the whole milk where skimmed milk and semi-skimmed took the choice of priority. Only half of the whole milk is directly used as it is the rest going through process in order to make cheese, yogurt and butter. This issue directly associated with the reflection of price cut of milk on the farmers.
Other questions also rise where the possibility of dairy farmers selling the milk directly without the processing firms mediation. But this option made impossible to exit the chain of trade as a one year fixed-term contracts with the processing firms is in a place . On the report, Dairy Crest which is one of the main milk processing firms agreed last week to release farmers from the fixed contract just after three month cut offered prices.
The Peter Kendall, the Union President stated even though the announcement gave a hope for a long term, it is not solving the current problems. Whereas, the UK dairy producers are also pleased as the voluntary code of practice has reached to this stage. The NFU also thinks that the customers (Supermarkets) should pay more for milk in order to cover the cost of production where enabling the milk processing firms to pay farmers to pay a reasonable price. As the milk price row between farmers and retailers continues, Bishop of Swansea Bishop of Swansea, John Davies called the intervention of independent mediators to address the issue.
As a result of the Sunday’s protest, co-operative, ASDA and Morrisons agreed in raising the payment made to the cost of milk for milk suppliers. Whereas ALDI has already agreed in putting additional pence for a litter of milk purchased from 1 August.
http://www.bbc.co.uk/news/business-18951422
http://www.bbc.co.uk/news/uk-england-birmingham-19004513