Fair Deal Campaign
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Recent Posts
- Paving the way for the factory dairy?
- Does Dairy UK represent the interests of dairy farmers or the IDF?
- Dairy farmers should see at least 35p/l as a stepping stone towards the true cost of production calculated for European Milk Board
- Nick Holt-Martyn: it would be “criminal” for retailers not to return more of their gross margin down the supply chain to farmers
- 4. Farmers for Action and the NFU
Fair Deal Council Members
Letters to the press
- British dairy industry in danger: Ian O’Reilly 2011
- Cut price milk? Hardly Fair Trade: Kathleen Calvert, 2011
- Dairy farming problems hit jobs: Dugdale Nutrition
- Electronic tagging of sheep: John Wilson
- Fair retail margin & formula needed to establish minimum price: Kathleen Calvert
- Fair trade for British food producers: B. Panvel
- A refusal to buy cheap milk may now be the only answer: Kathleen Calvert
- The level of discounting in supermarkets is crippling this industry: Ian O’Reilly
- Why farming needs subsidies: Sir Eric Howells
- Why shouldn’t the Fairtrade principle be applied to all food producers? B. Panvel
Fair Deal Food UK
Fair Deal Food Campaign
Paving the way for the factory dairy?
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Alastair Driver of the Farmers Guardian reported earlier this month that the Dairy Coalition – NFU, NFU Cymru, NFU Scotland, the Tenant Farmers Association, the Women’s Food and Farming Union and the Royal Association of British Dairy Farmers – has asked Farming Minister David Heath to ‘call in’ the 15% of milk buyers failing to implement the voluntary code on milk contracts.
NFU chief dairy adviser Robert Newbery said that the greatest resistance was coming from some of ‘big middle ground liquid processors’ who ‘don’t want to know’.
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Dairy UK director general Jim Begg said that the approach of the dairy companies had been ‘both responsible and constructive’.
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Three days ago Mr Driver showed figures collated by the Food Standards Agency (FSA) indicating that more than 30 farmers quit the industry in April alone in England and Wales. The number of dairy farmers in England and Wales has fallen by more than 40% from more than 18,000 in 2002.
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The Kingshay Dairy Manager costings show total purchased feed costs increased by 1.27 pence a litre over the past year, but milk price only went up 0.54ppl.
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DairyCo’s recent Farmer Intentions Survey showed that the current average farmgate milk price of around 30-31ppl is lagging behind the AMPE (Actual Milk Price Equivalent) market indicator, currently in excess of 38ppl.
NFU dairy board chairman Mansel Raymond said that if the leaving rate carries on for three months it will be serious: “The milk price has to go higher. The industry now needs that positive signal to move forward to increase production and invest.”
The Independent reports that an announcement on a timetable for plans for a farm in Foston, Derbyshire, stocking 25,000 pigs, is expected later this week. A decision on whether a 1000-cow mega-dairy near Welshpool can go ahead is also expected shortly.
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Joyce Watson, Member of the Welsh Assembly for Mid and West Wales, said: “With the full extent of the horsemeat scandal still coming to light, consumers want food they can trace and trust. Industrial-scale farms would be a big step in the wrong direction – bad for cows, bad for farmers, bad for consumers and bad for the environment.”
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Does Dairy UK represent the interests of dairy farmers or the IDF?
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The global agenda has put much of Britain’s large manufacturing, postal, water and energy utilities into foreign hands, multinationals are hoping to monopolise GM & non-GM seed sales – and agricultural land is targeted by investors who are ‘increasing their cut of the market’, as fewer farmers are now able to pay premium prices for land..
A Lancashire farmer has watched Jim Begg, Dairy UK’s Director General, “robustly promoting the ‘global agenda’ with frequent references to the International Dairy Federation (IDF)” – a private sector organisation representing the interests of various stakeholders in dairying at the international level, who include, openly or behind the scene:
- international traders
- processors
- exporters
- retailers
- banks
- hedge funds
- and financial speculators.
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Jim Begg advertises work the IDF are undertaking on protein quality which he sees as having far more commercial benefit to the industry worldwide than standing with a placard outside a factory gate – belittling the producers who are the most vital part of a valued British dairy supply chain.
The farmer further notes Mr Begg’s endorsement of the IDF as having the real power and influence, while attracting little attention from the farming press whom he says is obsessed with “fights and extremists” and points out that a free farming press is entitled to give an alternative voice to the many demoralised British dairy farmers which Jim Begg’s organisation – Dairy UK – claims to represent.
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Her verdict: British dairy farmers are the most vital part of a valued British dairy supply chain and will only become weaker and weaker trying to meet the “global challenge” in the hands of the International Dairy Federation.
Posted in Domestic fair trade, Processors, Supermarkets
Dairy farmers should see at least 35p/l as a stepping stone towards the true cost of production calculated for European Milk Board
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Today’s statement by William Taylor, Farmers For Action UK NI co-ordinator:
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“The next milk prices paid to Northern Ireland milk producers by NI processors will sort out which processors care about their producers and which intend to treat them as slaves.
“With milk markets on the rise and United Dairy Farmers milk auction no longer existing to reflect the speed of rise and a shortage of supply, there is no good reason why Northern Ireland farmers should not be seeing at least 35p/l as a stepping stone towards the true cost of production calculated for European Milk Board, as 50c/l minimum approximately 43p/l.
“Those processors that fail to deliver or at least be in the top 50% need to question their place in this great industry that can only exist on fairness.
“Meanwhile NI dairy farmers also need to select the best processors in the top 50% of the milk price league and either have a gentleman’s agreement on supply or a contract of 3 months maximum with the option to renew. By the farmer agreeing to a short term contract only, the processor has nothing to fear if their intentions are to pay top prices, however, they should expect to lose supply quickly if not.
“All that said, every effort must be made to re-establish a proper functioning milk auction in NI where its use in the last 9 months would have been worth at the very least an extra 3p/l plus or approximately 10% to NI producers and indeed possibly producers across the UK.”
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56 Cashel Road, Macosquin, Coleraine, Co L’derry, N Ireland, BT51 4NU
Tel/Fax 028 703 43419 Email taylor.w@btconnect.com
Nick Holt-Martyn: it would be “criminal” for retailers not to return more of their gross margin down the supply chain to farmers
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In the Farmers Weekly, Gemma Wainwright reports that dairy processors need to pay at least 35p/litre to secure milk supplies. Although UK farmgate milk prices have recently risen on the back of improved global commodity markets, further increases are needed to offset higher production costs, which have now reach an average of 34p/litre.
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At 10p/litre, purchased feed price was 25% higher in January this year than in 2012 for the average 197-cow herd costed
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Nick Holt-Martyn, senior consultant of The Dairy Group, notes that in the past three weeks, European dairy markets had increased by 7-8%, while southern hemisphere prices were up 30%:
“Globally there is a shortage of milk, and there is a commodity boom taking place in the southern hemisphere.
“If the price goes up in one part of the world, it has to go up in another part of the world”..
Unethical?
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He added that milk prices don’t rise in response to [production] costs, but to market pressures.
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We agree with Mr Holt-Martyn’s statement that it would be “criminal” for retailers not to return more of their gross margin down the supply chain to farmers.
4. Farmers for Action and the NFU
Kathleen Calvert: Farmers for Action and WI member, and Fair Deal Food Council adviser, writes:
I have followed what is a very political dairy situation actively since 2007, avidly observing the performance of both the NFU and FFA.
How many times have we seen the NFU huff and puff and make angry declarations to the press, stating only the obvious and issuing caveats that are never followed through properly, supporting unhelpful initiatives that never just come to fruition, and never acknowledging other organisations as having made any significant contribution.
It is plain to see that the NFU runs with both the hare and the hounds yet takes the lions share of the credit for anything it is involved with when other organisations like FFA and NFWI with whom they share a platform, have made significant, if not far greater contributions towards resolving the difficulties of dairy producers caused largely by an extremely distorted internal market.
The retailers may hide behind the skirts of the British Retail Consortium, the processors behind Dairy UK. Both organisations undermine producers.
Farmers do not naturally have militant inclinations yet must battle against the overwhelming and unfair power of the retailers knowing every other course of action has been tried.
Mr Handley leaves no stone unturned. He is a strong and skilful negotiator, assertive yet realistic and not afraid to speak his mind.
Love him or hate him, I would sooner put my trust in Mr Handley and his team to stand up for dairy producers and negotiate a fair outcome than rely on the NFU who will still be chatting in the harbour when the ship has sailed.
Posted in Domestic fair trade, Farmers for Action, NFU, Processors, Supermarkets
3. Farmers for Action and the NFU: another viewpoint
Julian Rose writes:
Very interesting. I am a member of FFA and was of NFU.
Blockades are ‘last resort’ policies. They are usually effective in achieving their goal.
It is necessary to use such tactics when issues of vital concern to a significant number of people are being ignored and/or deliberately blocked. Exponents include many of the most renowned leaders of humanity.
Farmers placed in an impossible position by the greed of supermarkets and processors have every right to blockade such organisations. In fact, time and again (sadly) it has been the only tactic that has worked.
NFU is too close to government. It will not stand-up against its bed mates. That is why I support FFA on those issues that quite simply demand immediate action.
Posted in Farmers for Action, NFU, Supermarkets
2. NFU: Protest, yes – blockade – no
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Our NFU link sent the following statement and adds:
As you can see below the issue for us is whether the protest is actually a blockade – we can’t and won’t support blockades – but we’ve lead many protests in the past and when the time is right will do so again.
To All NFU Group Secretaries
FFA withdraws from Dairy Coalition and TFA share concerns
You may have read in the Farmers Guardian Online that the FFA has pulled out of the Dairy Coalition. Whilst this is disappointing news, the NFU and the Dairy Coalition will and does continue to put pressure on retailers, discounters, and the food service sector to be more transparent on how they source and pay for cheese so that British dairy farmers producing milk for cheese receive a fair profit.
FFA leader David Handley stated that this exit was due to the NFU and Peter Kendall not supporting protests. The TFA has also released a statement sharing the concerns of FFA that the voluntary code of practice has not been sufficiently implemented.
In response the NFU would like to make clear that we have led from the front throughout the Dairy crisis, listening to and acting on member concerns, committing extensive resource, which culminated in the formation of the Dairy Coalition, successful demonstrations in Westminster and outside of retailer and processor sites and leafleting consumers about the unfairness within the dairy supply chain.
Therefore, when protests are well thought through, purposeful and with clearly defined and measurable goals we will support them. However, we cannot and will not support protests that are ad hoc, confused in their aims or, because of the legal implications of damaging trade, any form of blockade that is disruptive to farming or other businesses.
Posted in Farmers for Action, NFU, Price fluctuations, Processors, Supermarkets, Voluntary code
1. Farmers For Action gives reasons for leaving SOS Dairy coalition
Alistair Driver reported yesterday that – at a meeting at Stoneleigh on Tuesday – David Handley (Farmers For Action ) announced that FFA has pulled out of the dairy coalition, which was formed to fight for fairer prices during last summer’s SOS Dairy campaign.
Mr Handley said the FFA committee had agonised about the decision during a three-hour meeting in which he had continued to stress the importance of the coalition. But he said the committee felt that stepping away from the coalition would ‘free FFA’s shackles’ and allow it to ‘get out there now and move the job on’ without interference from others.
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FFA leader David Handley explained:
- ‘certain members’ of the coalition have been taking a ‘weak line’ on the dairy code of practice, for example, by giving processors more time to comply. “Farmers have got to be confident we are driving this . . .”
- FFA leaders were also frustrated by the NFU’s refusal to support ‘peaceful protests’. “We have asked NFU on a number of occasions if they would be prepared to notify their members when we take action, not do anything else. We don’t want them to jeopardise their assets . . . Every time we have asked, Peter Kendall has refused”.
After concerns that First Milk, a cheese supplier to supermarkets, would lower the prices paid to milk producers, FFA dairy farmers blockaded two Wm Morrison depots. First Milk is expected to announce soon that this threat has been averted and Mr Handley insists that the current spate of protests, which have targeted the Co-op and Morrisons, have helped to prevent a ‘mini-crisis becoming a major one’.
Posted in Adjudicator, Domestic fair trade, Farmers for Action, Farmgate price, NFU, Voluntary code
Industry ultimatum: calling on the main milk processors and retailers to pay a fair price or lose their supplies
The Farmers Guardian reports that dairy farmers in North Wales at NFU Cymru meetings in Clwyd and Montgomeryshire are backing a demand for a fair price for milk.
As Milk Board chairman, Aled Jones said:
“For far too long dairy farmers have suffered the lows in the market, never receiving the rewards when the markets are at a high”.
He pointed out that there is a growing demand for dairy products globally and that the farmgate price of milk should up if processors and retailers want a secure future supply, adding:
“We expect our milk buyers to seek the markets that maximise the value of milk and dairy products. If they do not and farmers do not see price rises then future supplies will not be secure.
“Our message is a simple one to all those who buy, use and sell milk — farmers need and deserve a price that fairly reflects the growing value of raw milk. If any part of the UK market chain fails to achieve that, it risks losing supplies to those companies who are taking the future of the British dairy industry seriously.”
To read more about European prices and the voluntary code, go to: http://www.farmersguardian.com/home/hot-topics/dairy-industry/dairy-farmers-back-industry-price-ultimatum/55012.article
Posted in Domestic fair trade, Farmgate price, Processors, Supermarkets
Cheese contracts: the next issue to be placed before the general public?
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Ian Potter remarks in his newsletter (12th April) that some current retail cheese contracts look “irresponsible” and fail to recognise the upward trend in farm gate milk prices.
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He continues: On the front page of today’s Farmers Guardian the BRC have been allowed to get away with the comment “but farmers need to acknowledge cheese is a globally traded commodity with prices set on the world stage”. I realise they are there to defend retailers but surely not to tell porkies. The British Retail Consortium (BRC) needs educating . . .
Extracts:
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Out of the 410,000 tonnes or so of cheese we consume in the UK we produce around 320,000 tonnes with 80,000 tonnes coming from Ireland, a bit from Holland and New Zealand.
British and, for that matter, Irish cheese is not globally traded and if members of the BRC want to import their cheese from the USA or South Africa then crack on lads. (Ed: note fatalities in USA due to imported cheese, reported in December.) With ASDA having found bute in its Smart Price corned beef produced in France, and the whole horsemeat scandal with 50,000 tonnes of Dutch beef products recalled, when will the retailers, discounters and food service learn*.
The main customer for Irish cheese is the UK and the lion’s share of UK produced cheese is domestically consumed.
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As the Scottish NFU President Nigel Miller stated this week, “I suspect the general public will be disappointed to hear that, at the moment, the rewards from cheese production are largely filling retailer coffers” and that the cheese market is dysfunctional.
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*Earlier references: in view of the recent horse meat scandal, FFA Chairman David Handley is calling on all CEOs of the retail industry to clearly show country of origin on all purchased cheese. Alistair Driver in the Farmers Guardian adds: “Mr Handley claims ‘double standards’ were at play as imported cheese often does not meet the standards asked of British farmers, for example, when it comes to requirements on cell count levels which measure milk quality and bacteria levels . . .