Watch: David Cameron offers hope to Shropshire dairy farmers
Milk retailers could face fines if they fail to pay or deal with farmers in an unreasonable manner, David Cameron has revealed.
Video: David Cameron responds to a Commons question from Montgomeryshire MP Glyn Davies
The Prime Minister says the dairy industry should be under the supervision of a watchdog with teeth to crackdown on unfair practices.
He has called for the Groceries Code Adjudicator to be given the powers to monitor the milk industry.
The boost comes as Mr Cameron responded to a Commons question from Montgomeryshire MP Glyn Davies, pledging to help farmers get a fair price and be paid on time.
Mr Cameron said: "I think it is important that we look at how we can support dairy farms at a time we have low milk prices
"This is an important industry for our country and I know a number of things we can do.
"With the Groceries Code Adjudicator, something we have established, I think it is time to make sure that organisation has the power if necessary to levy fines so that it can get its will obeyed.
"I also think it's time to look at whether there are ways in which its remit can be extended to make sure we look more at this vital industry."
Farmers are facing the worst crisis in years after the price of milk fell to just 22p a pint – now at its lowest level in seven years.
The issue has had an impact on support industries, with agricultural groupWynnstay revealing it had to overcome a collapse in the prices it could charge for its products to post increased turnover and profits for the last year.
The firm saw its turnover edge higher to £413.6 million, from £413.5 million last year, while pre tax profits also improved slightly from £8.46 million to £8.6 million in the full year to October 31.
The company, which manufactures feed, processes seeds, fertiliser, and agro-chemicals, and runs country and pet stores, employs hundreds of people at its headquarters at Llansantffraid.
