First Milk must quell farmers’ fears, says NFU

The dairy cooperative and processor made the announcement on January 8​, claiming it had been forced into doing so by cash flow struggles provoked by extremely tough market conditions.

After face-to-face talks with First Milk today, NFU president Meurig Raymond said it was essential for First Milk to provide information to its milk suppliers given the current situation.

Serious burden​

Raymond said the timing of the announcement heaped a serious burden for farmers and threatened severe damage to their cash flow at an expensive and demanding time of year for costs.

“It is paramount that the financial stability of First Milk is secured,”​ said Raymond. “And as a farmer-owned co-operative, I expect First Milk to arrange early meetings with their farmer suppliers, before its ​[annual general meeting] at the end of January, to answer their urgent questions. Farmers need to have a better understanding of their options in order to develop a sustainable business plan. ​

“Make no mistake, I have heard from NFU members, some who are extremely anxious after yesterday’s news, and I have taken those views to the chairman of First Milk during discussions today.​

‘Crucial time’​

“My priority is the impact of First Milk’s announcement on our members and I am working to ensure we are doing all we can across the NFU to support our members at this crucial time.”​

The NFU’s county advisers and group secretary network were working to support its affected members and it was taking “lots of calls”​ from worried members at CallFirst, it said. To help keep its members informed, it has made a question and answer sheet available from NFU Online.

“In the meantime we are holding​ ongoing talks with banks to ensure they remain supportive to dairy farmers at this crucial time,” ​said Raymond.

Meanwhile, the Welsh deputy minister for farming and food, Rebecca Evans, has requested a meeting with First Milk, which is responsible for buying a quarter of the milk produced in Wales.

‘Disappointing’​

“This is clearly disappointing news and a further blow for Welsh dairy farmers who are already suffering from recent cuts to milk prices,”​ said Evans.

“The Welsh Government continues to explore how resilience can be increased in the Welsh dairy supply chain. We are also considering how we may increase processing capacity in Wales, but also a range of other measures relating to product development and marketing, which will be of benefit to our dairy farmers.​

“I have also requested urgent input from my Dairy Task Force on this matter.”​

In November last year, the deputy minister appointed Andy Richardson to lead a dairy review, drawing on work already undertaken by the Dairy Task Force and taking views from across the Welsh supply chain.

The review is considering what support the Rural Development Programme 2014 – 2020 can provide to dairy farmers and the milk processing sector. It is also addressing issues relating to continued milk price volatility and considering whether there are legal and voluntary mechanisms that could give a more stable farm gate milk price.