NFU Scotland Calls for Action Amidst Plummeting Milk Prices
NFU Scotland is raising alarms over a severe downturn in milk prices affecting Scottish dairy farmers. The organization highlights that many farmers are currently receiving payments lower than their production costs, creating pressure to scale back or potentially exit the industry entirely. Vice President Robert Neill remarked on the unprecedented speed of the price drop, emphasizing the urgent need for responsible actions from the supply chain.
While a few farmers with organic or supermarket-aligned contracts have some protection, a significant number remain exposed to market fluctuations. An increase in milk production across the UK and internationally has contributed to the decrease in prices, at a time when costs for feed and other inputs remain elevated.
The four UK farming unions, including NFU Scotland, have collectively sent a letter to milk processors to advocate for fairness and transparency. This communication stresses the importance of adhering to the new Fair Dealing regulations, which grant farmers the right to request a clear explanation of pricing mechanisms. It's noted as the first significant test for the contract regulation adjudicator.
Many farms have made substantial investments over the past two years, investments that have benefitted the broader rural economy. However, the current income reductions have raised concerns about servicing these investments. NFU Scotland is also engaging directly with banks and retailers, seeking support and flexibility in these trying times.
Robert Neill highlighted the broader implications beyond milk, pointing to rural employment, local food security, and community futures as critical considerations. He urged the supply chain to share the risks along with the rewards.
Despite current challenges, significant investments like Arla's £144 million upgrade in Lockerbie and growing export successes underline the sector's potential. However, there remains a pressing need for immediate assistance to ensure the survival of farms to benefit from these opportunities in the long term.
