Farmers preparing to blockade supermarkets in milk price row

Three large processors – Robert Wiseman, Arla Foods UK and Dairy Crest – have all announced a reduction in the price they pay farmers for milk in the past few days, prompting widespread concern about the future of the industry.

The Farmers For Action group is now threatening the UK’s large retailers with blockades, particularly Leeds-based Asda, which it blames for discounting milk too heavily.

The group has carried out similar protests before, disrupting the day-to-day running of supermarkets.

David Hanley, its chairman, told the Yorkshire Post: “If things remain as they are then we will no longer have a sustainable milk industry in this country. Asda are discounting milk so heavily and this goes right down the retail chain.”

Mr Hanley said that protests would begin in the next month or so and added that his group would be lobbying Parliament extensively on the issue.

Mansel Raymond, dairy spokesman for the NFU – which is hosting an emergency meeting on the situation today in Staffordshire – strongly condemned the cuts.

“It is time for liquid milk processors – and retailers and other major buyers – to take responsibility for this totally dysfunctional supply chain. It is the aggressive and deflationary nature of price negotiations between retailers and processors that is really hurting.”

Farming Minister Jim Paice said the cuts were “disappointing” and called for a voluntary code of practice to be drawn up for the dairy industry.

An Asda spokeswoman said: “Farmers who produce milk for Asda are paid a premium to do so. This premium is above and beyond the standard Arla milk price, which is set by them in conjunction with the Arla Foods Milk Partnership (ie its farmers).

“We are proud of the relationship we have with both Arla and its farmer partners.”