Dairy farmers received a boost at the National Federation of Women's Institute annual meeting in London this week when the 215,000 member organisation agreed to support better milk prices and plans to follow up with a series of actions that include lobbying retailers and processors.

More than 99% of the NFWI pledged support for a resolution from the Devon Federation urging members to 'do all in their power to raise public awareness of the unfair difference between the retail price of milk and price paid to the farmer'.

Speaking for the resolution, the Royal Association of British Dairy Farmers' chief executive, Nick Everington argued: “Dairy farmers are a hardy breed, and have been prepared in the past to work long hours, for rates of pay well below the minimum average wage in order to stay in business. However, this is not sustainable even in the short term, nor is it fair that farmers continue to subsidise the costs of milk production while some retailers are making multi billion pound profits.

“In the last 10 years, 25 producers have left the industry per week. During that period farm gate prices have fallen by 25%, processor margins on liquid milk have remained relatively consistent at 40% to 45%, while retailer margins have increased dramatically from 3% to 28%,” he explained. “The market is therefore not working properly, price rises are being absorbed by the retailers and processors and not being passed on to the farmer. Recent farmer led initiatives have urged retailers to increase the price of milk by as much as 3.5ppl, however previous experience has shown a 1ppl increase usually ends up with farmers getting a miserly 0.3ppl.

“At the same time there is every reason for farm gate prices to be rising: milk consumption is beginning to rise for the first time in 30 years, market prices for the main dairy commodities are holding up well, cheese stocks are low and prices firming, the £ is weakening against the Euro and milk production is running well below quota. Without a farm gate price increase, farmers will not have the capacity to make the reinvestment needed for the future to provide an efficient and dynamic dairy sector,” said Mr Everington adding there was a strong case for an independent watchdog regulator to be appointed to investigate and oversee the dairy industry to ensure a fair margin was returned to farmers and all the sectors involved.

Barbara Gill, Chairman of the National Federation of Women's Institutes said: "I am delighted that our members voted, almost unanimously, to take on the issue of unfair prices paid to dairy farmers. Food and farming has been at the heart of the NFWI since it began in 1915 and, 90 years later, sustainable farming practices are still very important to us. This resolution means that the NFWI and Women's Institute members across the country will campaign and work to do all they can to ensure that dairy farmers receive a fair price for their milk.”