Support Invoicing Campaign, Urges Potter
15/12/06

The claim by NFU Scotland presidential hopeful, Jim McLaren, that the invoicing campaign being mounted by dairy farmers is no more than a “gimmick” has been challenged by leading milk quota broker, Ian Potter.

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Dairy farmers should be supporting the initiative by invoicing milk processors for the short-fall in ex-farm milk prices, Mr Potter insisted when he spoke to 350 farmers at a Farm Forum held by Harbro Ltd at their new £5 million animal feed mill at Lesmahagow, Lanarkshire.

“The supermarkets are watching what happens closely and if too few farmers respond, the conclusion will be that they are not bothered,” he warned. “A good response is crucial. It is a challenge and takes up less time than going on a demonstration. The industry needs activists – not laid back pacifists.”

Retailers and processors, Mr Potter added, will not fully realise that the current low milk price is unsustainable until production is cut dramatically.

“Production may have to be cut by upwards of four billion litres before any real difference will be seen,” he suggested.

The Single Farm Payment – which processors had already “pick-pocketed” – should not be used to prop up a loss-making business.  

“Using the SFP for this purpose is only sticking a plaster on the wound and sooner or later it will have to be removed,” he said.

Mr Potter said the acquisition of Dairy Crest’s commodity cheese processing operation by the dairy farmers’ co-op, First Milk, would open the way for dairy farmers to own the bulk of milk processing in the UK.

The aim should be to “de-commoditise” milk by following Waitrose and ASDA in sourcing milk from dedicated suppliers or through farm-branded milk.

“Today, the dairies supplying milk and cheese to the big retailers are competing on price alone,” he said.

ANM Group chief executive, Brian Pack, renewed his attack on reforms of the Common Agricultural Policy and predicted a “re-coupling” of support linked to production.

“The EU has lost sight of the fact that food production is the key to society,” said Mr Pack. “Politicians still think we have mountains of beef in cold stores when in fact Europe is down to 60% self-sufficiency.

“France has not yet got rid of the suckler cow premium and Ireland has recently re-introduced direct support for suckler cows. The rest of Europe will follow in three or four years in order to encourage increased beef production.”

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