Farmers For Action (FFA) leader David Handley had some tough words for dairy farmers struggling to meet the cost of production – help yourself or no one else will.
Mr Handley told a seminar at today’s Livestock Event farmers must take a ‘long, hard look’ at their businesses and not rely on organisations such as FFA and the NFU to give producers a sustainable return.
He also stressed the importance of farmers speaking to their own milk buyers in order to help them gauge demand.
Mr Handley said: “It is an indictment on us as dairy producers if we don’t talk to our milk processor. If you don’t find out where the market is, what are you doing the job for?
“Dairy farmers have got to get away from this idea that once the pipe has been taken off the tank it is somebody else’s responsibility.
“We are not going to come to the rescue if you keep producing it, not worry about your costs and think someone else is going to give you a return that is sustainable. Dream on, it’s not going to happen.»
Duncan Pullar, AHDB dairy sector director, said farmers must look closely at their own cost of production, adding the board’s own research showed the average COP was 28ppl.
«When the milk price is 28ppl that is a pretty bad place to be,» he said.
«You need to have a low cost system that allows you to work in that area. Your cost of production needs to be in the area of 22/24ppl if you are going to be in that market.»
NFU dairy board chairman Rob Harrison said there was such a diverse range of system sizes in the UK that all producers had to ensure they were in the top 50 per cent to be competitive.
«The onus is on us as farmers to produce milk as cost efficiently as we can,» he said, adding it was unlikely there would be any upward movement in the milk price before the spring flush in Europe next year.
Mr Harrison said the industry desperately needed the support of all end users of milk – from retailers’ right through to coffee shops, hotels and wholesalers – as it suffered another raft of farmgate milk price cuts.
He said farmers were concerned about the heavy discounting of milk at retail, which devalued the product and could reduce the sustainability of the whole supply chain.
“It’s now time that these companies start showing the public and their farmers that they are prepared to deliver transparency and sustainability, and particularly to make sure that farmers are not funding retail price wars,” added Mr Harrison.
David Handley said those retailers who undermined UK products by pulling in cheaper imports and therefore putting home producers at risk ’should be embarrassed’ and held to account.
RABDF chairman Ian Macalpine said promotion of UK dairy products was key.
“We need to drive consumption; increase demand and promote milk for what it’s worth and not for what it costs to produce. The domestic market should be helping us get through the volatility.»
He said the Government could help drive this and slammed the Department of Health for ’slagging off milk saying it is unhealthy’.
Source: FG Insight