NFU Scotland met with MP George Eustice to discuss farmgate prices ’lagging behind’ the dairy recovery
NFU Scotland (NFUS) has met with George Eustice, Minister of State at Defra today (September 7) to discuss concerns over milk prices.
At the meeting, the union informed the Minister recent milk price increases from processors have not gone far enough to assist milk producers.
Graeme Kilpatrick, NFU Scotland’s Dairy Committee Chairman said they had discussed the issues which prevent the industry from ’being sustainable and having a viable future’.
"The current market is moving quicker than the farm gate prices. All market indicators are rising steeply but the farm gate is not," he said.
In the past month, Actual Milk Price Equivalent (AMPE) and Milk for Cheese Value Equivalent (MCVE) indicators have gone up 24 per cent and spot prices for liquid milk are now over 35p per litre.
However, the average price Scottish farmers are receiving is about 20ppl.
Mr Kilpatrick said Mr Eustice ’accepted there is a need to develop better contracts and producer representation’.
"Dairy farmers remain the price takers and we discussed options with the Minister which must create better and more effective contracts and price transparency transmission."
NFUS will meet again with Mr Eustice to discuss improvements to the voluntary Code of Practice.