Call on processors to pay more for milk

Rising prices in commodity markets have seen some processors increase their farmgate milk prices but others are holding back – prompting the call from the National Farmers' Union new dairy chief, Mansel Raymond.

Mr Raymond made his call ahead of a visit to Yorkshire this coming week in which he will gauge the mood and optimism levels of the county's dairy farmers following nearly two years of low prices and high overheads.

His views were backed up by Nick Holt-Martyn, director of The Dairy Group, who said that current worldwide market conditions all pointed towards the need for a better price being paid for milk.

Mr Holt-Martyn said: "There are increases throughout the milk price league suggesting significant improvements in market return is taking place.

"UK weather remains unsettled, with a combination of sunny but cool weather holding back grass production in many areas. Milk production itself is likely to be up to last year's level although not sufficient to dampen the market returns.

"The ever-widening gap with market returns is and should continue to deliver milk price increases in 2010."

Mr Raymond was elected to the top dairy job within the NFU following its annual conference in February, when his predecessor Gwyn Jones became NFU vice president.

This will be his first trip to the North East and he says there is a lot to discuss in a region so hard hit by last year's collapse of Dairy Farmers of Britain.

"Dairy commodity prices are accelerating rapidly and at long last there have been some positive movements in some farmgate milk prices," he said.

"However a number of questions still need to be asked of processors who have yet to announce a price increase or who have not yet gone far enough.

"Dairy farmers are feeling more confident about their future prospects, according to the latest survey by DairyCo, but as producers in the North East know only too well, confidence can drop like a stone if expectations of better returns fail to materialise.

"I'm very much looking forward to my trip to the North East – it will give me a great opportunity to talk to local producers and make sure that the work of the NFU's national board reflects their aspirations and priorities."

Mr Raymond will attend the regional dairy board meeting on Monday, May 17 at Pickering's Black Swan Hotel from 7.30pm.

He will also be accompanied by national dairy adviser Sian Davies, who is currently working on the NFU's animal health and welfare strategy.