The announcement today by First Milk of a 0.75 pence per litre cut in the farmgate milk price is a further bitter blow for dairy farmers, according to NFU Scotland.

Milk Committee Chairman Willie Lamont said:

“The First Milk move follows cuts by all the major milk processors. This is part of a destructive downward spiral which is threatening the future of Scotland’s remaining dairy farms.

“Our dairy members across the country are questioning their future given the inability, and indeed in some cases unwillingness, of processors and supermarkets to pay a sustainable price. The fact that First Milk has little option but to follow these moves demonstrates that farmers remain price takers in the absence of real strength in the market place.

“First Milk members need to see the co-operatives’ new strategy as a matter of urgency. In a short-term game of slashing prices, farmers need a long-term strategy if they are to even think about milking cows beyond this winter. Processors and supermarkets’ vision has been made crystal clear - maximise profits for shareholders. First Milk’s strategy must pinpoint how it will tackle that destructive climate, secure the long-term support of its members and stand firm for a sustainable price.

“We are fighting for a structure which allows co-operatives to develop in the same way as those elsewhere and for a supply chain which eliminates exploitation and rewards quality. We are making huge progress on those fronts and I am confident we will win the fight. But once we have the structure, we must make it work for us.”

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