23/07/2012

Ministers To Host Milk Dispute Talks

In an effort to resolve a dispute over milk pricing, minister will host talks between dairy farmers and milk processing firms.

The farming minister at Westminster, Jim Paice, will lead the meeting at the Royal Welsh Show, in Powys.

The farmers' anger has centred on cuts of up to two pence per litre (ppl) in the amount they receive from major milk processors, set to come in from 1 August.

Robert Wiseman Dairies and First Milk are cutting the price by 1.7ppl, Arla Foods UK by 2ppl and Dairy Crest by 1.65ppl.

The processors say they have no choice because the price they can sell certain dairy products for on the commodities market has fallen sharply in the past 12 to 18 months.

The meeting will include representatives of the National Farmers' Union and the trade body for milk processing firms, Dairy UK

In a joint statement the ministers said: "The dairy sector is a key part of our agricultural industry and all the governments in the UK are determined that it should have a profitable and sustainable future.

"In responding to the current situation, the industry needs to address both the immediate issue of the price paid for milk and also the structures and mechanisms that will help underpin the long-term viability of the sector."

Farmers for Action have said that more than 2,000 farmers took part in blockades in Somerset, Shropshire and Worcestershire on Sunday over the prices they receive.

Defra said the protests were "not the way forward".

(H/GK)

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