Fairer pricing for dairy farmers needs to be placed at the top of the government’s agenda after Brexit, according to a Cumbrian union official.

As one of the major players in the Cumbrian dairy industry, First Milk, announces a farmgate milk price cut for February, Alistair Mackintosh says the dairy industry desperately needs the support of all end-users of milk - from retailers’ right through to coffee shops, hotels and wholesalers.

“The industry is in this situation because voluntary codes do not work. Farmers have been price takers for too long. Things have got to change, but the answer is not voluntary codes,” said Mr Mackintosh, National Farmers Union Cumbrian council delegate. He spoke out after Farm Minister George Eustice admitted, at the Semex Conference in Glasgow, that changes to how dairy contracts work was overdue and inevitable.

Mr Eustice told an audience of milk producers “dairy farmers either need the ability to walk away from a processor, or, if they are committing for the long term, they need to commit to how that price is calculated”.

He added that an element of the reform would be shorter notice periods of as little as four weeks for dairy farmers, if they are unsatisfied with the performance of their processor. “We are not asking for a guarantee on prices right away, just a guarantee on the way in which prices are calculated,” he said. 

“Some of the dairy co-ops out there do a good job in the market place, but individual farmers with individual contracts are never going to have any say on what returns will be. Farmers need to work together and build relationships with processors,” said Mr Mackintosh. 

First Milk, owners of Lake District Creamery at Aspatria has  announced that it will be reducing its member milk price from February 1, by 0.25ppl to 27.5ppl for the liquid standard litre (4% butterfat, 3.3 per cent protein). This equates to 28.43ppl on a manufacturing standard litre (4% butterfat and 3.4% protein).

Jim Baird, vice chairman and farmer director, said: “The impact of downward pressure in the markets during the latter part of last year has taken longer to influence cheese markets than some other dairy commodities, and it is that lag which has resulted in this milk price reduction for February.

“Hearteningly, dairy markets have recovered in recent weeks, and there are signs of more stability ahead. The uncertainties over Brexit continue, however, so it too early to predict what will happen with milk prices.