UK: Deal reached to end milk stalemate
Dairy farmers and processing firms have struck a deal “in principle” to end the bitter stalemate over milk prices.
The two sides met face-to-face at the Royal Welsh show in Powys today after a tense past few days, which culminated in several dairy factories being blockaded.
Several agricultural unions say their members are angry at being paid less for the milk they produce by big supermarkets - who aim to keep the cost of dairy products for its customers as low as possible.
Following hours of talks, both sides have agreed to sign up to a new voluntary code of practice.
It means firms buying milk, like big supermarkets, would give a “sensible” notice period when changing their prices - so farmers would have enough time to opt out of any deals.
Government officials say they could still bring in legislation at a later date if the code failed to work - but admitted ministers would still not be able to dictate prices.
National Farming Union (NFU) president Peter Kendall said while the announcement gave some hope for the long term it did not solve the issues farmers faced on a daily basis.
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He said: “This agreement will give us the architecture we need to make sure that we don’t end up with the same dysfunctional markets that are responsible for the dairy crisis we have today.
“The farming community is more united than ever before and the strength of feeling on this dairy issue is increasing and not decreasing.
“We will spend the rest of this month collectively throwing 100% of our efforts into reversing the price cuts from earlier this year and rescinding the ones on the horizon on August 1.”
