Minister still hopes to avoid calamity

Farming Minister Jim Paice will be on the panel and – speaking at the Great Yorkshire Show yesterday – he said he was hoping to see progress towards the voluntary code of practice he has been calling for, for contracts between suppliers and buyers.

He did not think a compulsory code was the way to go but the EU obliged him to consider it and he made clear that his patience with negotiations towards a voluntary solution was running out.

He said: “I say again that despite everything, I really believe dairy farming in the UK has a good future.

“We grow grass more effectively than anyone else, with the possible exception of Ireland, and the world is desperate for more dairy products.”

Mr Paice said the trouble in this country was that too many farmers were competing to sell liquid milk through the supermarkets while the other half of the market – products like yoghurts and cheeses – was wide open to imports.

But he added: “I agree that a great future is no good if you cannot get through the next few weeks or months.

“And we all know that if there is not a shift, dairying will go on declining, whatever the global opportunities – and that would be a calamity and an unbelievable waste.”

An NFU spokeswoman said: “Such significant price cuts will drive farmers out of the dairy industry, which is united in its demand for an immediate reversal of recent and planned cuts.

“There is a window of opportunity between now and August 1 to ensure that all milk price cuts imposed on farmers since April 1 be restored.

“This summit will act as a catalyst for that reversal, and will also allow discussion about how we bring about wholesale change to the sector so that dairy farmers are not paid a price below the cost of production for their milk, and to ensure the future of this vital industry is secured.”