Fresh blow for Shropshire dairy farmers

Arla, which has a plant in Oswestry and another on the Shropshire border in Malpas, has announced a cut in the price it will pay farmers for milk from today.

The price cut will see the amount it pays UK members drop by 0.84p per litre, taking their standard litre price to 24.99p.

Rob Harrison, National Farmers' Union's dairy board chairman, said: "Arla's announcement is yet another major setback when UK milk prices are already at unsustainably low levels with many of our dairy farmers in dire financial difficulties, struggling to see a way through the next few months.

"I cannot emphasise how important it is that other processors base the price they pay their farmers on their own product mix and continue to search for maximum value throughout the supply chain, rather than idly following one another to the bottom.

"Global markets, which rallied in January and February, have fallen back again, with this week's global trade auction falling by 2.2 per cent, leaving commodity markets in the worst position we have seen in years.

"We have passed the UK spring flush peak and spot prices have improved slightly but there is little respite on the horizon for the dairy sector and it is going to be intensely painful for a lot of dairy producers in the short term."

The move has also been criticised by NFU Cymru Milk Board Chairman Aled Jones, who said:

"Despite the bleak outlook, thankfully we still have the support of the British public. I'd urge them to keep on buying British dairy products, including cheese, butter and yoghurt and look out for the Red Tractor logo.

"Farmers appreciate all the support from shoppers who continue to back British farming."

Ash Amirahmadi, Arla UK's head of milk and member services, said: "Following a brief market upturn, which we were able to reflect in our milk price, the commodity markets continue their negative trend.

"While we continue to do everything possible to minimise the impact, unfortunately, we have not been able to buck the market.

"The entire global dairy industry has been affected by these market forces."

In Shropshire dozens of farmers blockaded the Muller Wiseman base in Market Drayton in February after the firm announced it would be cutting 1.75 pence per litre from the price it pays for milk on March 5, taking its standard rate to 24.15 pence per litre.