NFU demands milk price hike

- Last updated on GMT

Related tags: Supply chain, Supply and demand

The National Farmers' Union (NFU) has said that the whole milk
supply chain must demand price increases from its customers if
farmers are to receive an increase in farm gate prices.

The National Farmers' Union (NFU) has said that the whole milk supply chain must demand price increases from its customers if farmers are to receive an increase in farm gate prices.

NFU​ milk chairman Terrig Morgan reiterated that market factors clearly indicate that farm gate prices should go up by at least 2p per litre across the board to all producers.

But he said: "The desperately needed increase to farmers will only happen if the whole dairy supply chain - farmers, co-operatives and processors - all demand an increase.

"The time is now ripe for all in the supply chain to take advantage of the market situation and drive prices up to what the market signals suggest they should be. There can be no more excuses."​The weaker pound, the resulting increase in the Intervention Milk Price Equivalent to an average of 19p per litre, and lower UK cheese stocks all suggest there should be a farmgate milk price rise of at least 2p per litre.

"It is in the interests of the whole chain that those who provide the raw material - the dairy farmers - receive a realistic price that sustains their business,"​ said Morgan.

"The only way that this will be achieved is if those who negotiate milk prices go out and ask for it from their customers."

Related topics: Markets, Pricing Pressures, Fresh Milk

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