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Milk price row: farming union leaders meet Morrisons bosses Milk price row: farming union leaders meet Morrisons bosses
(about 3 hours later)
Farmers and union leaders are meeting supermarket bosses from Morrisons in an attempt to resolve a row about the price of milk. Morrisons is to launch a new milk brand that costs 10p extra, with the premium paid directly to British dairy farmers, in an attempt to end a dispute over the falling price of milk.
Morrisons has been the target of a series of farmer protests, including the mass purchase of milk from supermarket shelves and blockading distribution centres. The supermarket chain will sell four-pint bottles of “Morrisons Milk for Farmers” alongside its existing own-brand milk, which will remain at the same price and therefore 10p cheaper.
The announcement follows talks between Morrisons and disgruntled farmers, who have blockaded the company’s distribution centres and overseen the mass purchase of milk from supermarket shelves.
The new milk brand will offer shoppers the option of paying more to support dairy farmers, or choosing cheaper alternatives.
Martyn Jones, corporate services director at Morrisons, said: “We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly.”
It remains to be seen whether farmers and the leading agriculture unions will welcome the move. Farmers For Action, which has organised the protests, had called for a halt to the campaign until the end of talks with Morrisons.
The National Farmers Union and other leading unions have warned that the farming industry is in a “state of emergency” and that many farms are on the brink of financial ruin because the price of milk has fallen by 25% over the last year.The National Farmers Union and other leading unions have warned that the farming industry is in a “state of emergency” and that many farms are on the brink of financial ruin because the price of milk has fallen by 25% over the last year.
Protesters have targeted Morrisons and Asda because they have not followed Tesco and Sainsbury’s in paying farmers a higher price based on production costs.
Related: Farming unions call for 'seismic change' in way food is sold in BritainRelated: Farming unions call for 'seismic change' in way food is sold in Britain
Figures from AHDB Dairy, the trade body, show that the average UK farmgate price for milk has fallen to 23.66p per litre. Industry experts claim it costs farmers 30p per litre to produce milk.Figures from AHDB Dairy, the trade body, show that the average UK farmgate price for milk has fallen to 23.66p per litre. Industry experts claim it costs farmers 30p per litre to produce milk.
Protesters have targeted Morrisons and Asda because they have not followed Tesco and Sainsbury’s in paying farmers a higher price based on production costs.
However, Farmers For Action, which has organised the protests, has called for a halt to the campaign until the end of talks with Morrisons.
David Handley, the head of Farmers For Action, is meeting with Martyn Jones, the corporate services director of Morrisons, in the Midlands. Meurig Raymond, the NFU president, and other union leaders will also attend.
The farming unions held an emergency summit on Monday to discuss the crisis. Following the talks, they called on the government to introduce long-term contracts between farmers, distributors and supermarkets and to force retailers to label clearly whether their products are British or imported.The farming unions held an emergency summit on Monday to discuss the crisis. Following the talks, they called on the government to introduce long-term contracts between farmers, distributors and supermarkets and to force retailers to label clearly whether their products are British or imported.
The presidents of the NFU, NFU Scotland, NFU Cymru, Ulster Farmers Union and four other unions, warned of “dire consequences for the farming industry and rural economy” if the way in which food is sold does not change in the near future.The presidents of the NFU, NFU Scotland, NFU Cymru, Ulster Farmers Union and four other unions, warned of “dire consequences for the farming industry and rural economy” if the way in which food is sold does not change in the near future.
In a direct message to retailers, they added: “Stop devaluing fresh British food like milk purely to get customers through the door.”In a direct message to retailers, they added: “Stop devaluing fresh British food like milk purely to get customers through the door.”
Farmers have blamed the fall in prices on a supermarket price war but retailers claim the drop reflects the decline in commodity prices and an oversupply of milk, partly caused by Russia’s block on western imports.Farmers have blamed the fall in prices on a supermarket price war but retailers claim the drop reflects the decline in commodity prices and an oversupply of milk, partly caused by Russia’s block on western imports.
Ash Amirahmadi, head of milk at Arla, the UK’s largest milk supplier, warned that some farmers were being paid as little as 12p or 13p per litre and that the present situation was unsustainable. Jones said that the price Morrisons pays for milk “reflects the highly competitive retail market”.
He added: “We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families.
“We want to reassure the industry that the retail price we charge for Morrisons milk reflects the highly competitive retail market. It is not linked to the price we pay our milk suppliers.”
The new Morrisons milk brand will be launch in conjunction with Arla, the UK’s largest milk supplier, which works with 3,000 dairy farms.
Ash Amirahmadi, head of milk at Arla, warned that some farmers were being paid as little as 12p or 13p per litre and that the present situation was unsustainable.
He added: “Our farmers are incredibly concerned at the moment. There is a reason why farmers are going out protesting; they are not bad people.”He added: “Our farmers are incredibly concerned at the moment. There is a reason why farmers are going out protesting; they are not bad people.”
Amirahmadi urged retailers to make themselves “part of the solution” by signing up to the new conditions and improving the labelling of British products.Amirahmadi urged retailers to make themselves “part of the solution” by signing up to the new conditions and improving the labelling of British products.
“Some retailers are not far off following this already but it is not transparent,” he said. “We want to make it more transparent for our farmers.”“Some retailers are not far off following this already but it is not transparent,” he said. “We want to make it more transparent for our farmers.”