Supermarkets agree to milk price rise (From Western Telegraph)

Supermarkets agree to milk price rise

Pembrokeshire milk producers are demanding a guarantee from processors that they will get a cut of the 2p a litre rise in the retail price of milk agreed by supermarkets this week.

Tesco, Safeway, Asda, Sainsbury's and Kwik Save have decided to increase the retail price of milk in their stores after accepting the argument that farmers are now selling milk for less than the cost of production.

But dairy farmers like Robert Voyle are concerned that not all that money will reach the pockets of producers.

"It needs to go directly to the producers, it is essential for the future of the industry and the continuation of a milk supply to these retailers,'' said Mr Voyle, of Churchlands Farm, Clarbeston, who represents Pembrokeshire on the FUW Milk and Dairy Produce Committee.

But even if the entire price rise was passed on to the producers, it would not be enough to save some businesses, predicted Mr Voyle. "It does not allow for reinvestment, it is not enough for the work and effort that is put into producing milk.''

Some reports have suggested that despite the gesture by the supermarkets, as little as 0.5p a litre will finally reach producers.

At present, for every 30p pint of milk sold in supermarkets, farmers receive an average of just under 9p while supermarkets and processors share the remaining 21p.

Dairy farmers are currently leaving the industry at the rate of two a week. Almost 8,000 have already called it a day in England and Wales since 1997, bringing the total number of dairy holdings down to 20,191.

l Dai Davies, NFU Cymru vice president and a dairy farmer from Whitland, said hard pressed Welsh dairy farmers were encouraged that some of the major retailers of milk were starting to hear their concerns and were now recognising that producers needed to receive a better return in the short term if they are to survive.