Recently, many dairy farmers have had the price they receive for their milk cut by some processors with further cuts being proposed, meaning the price they receive is less than what it costs to produce their milk. As a result, it is likely even more dairy farmers will be forced to sell their cows and leave farming altogether. This could leave the UK more reliant on imports of milk produced to poorer welfare standards, undermining the vital role of dairy farmers in managing our much loved pastoral landscapes.

Local campaigners at CPRE Sussex know how farming pressures have hit Sussex. The charity compiled a research dossier of Sussex trends in its report 'Farming Futures' cataloguing a decline in traditional farming; particularly dairy, cattle, sheep and cereal farming. It found that where livestock remains, it is more likely to be a 'rare-breed chicken' or a 'niche-market cow'. Supermarkets increasingly import food from all over the world, whilst British livestock dwindles.

CPRE Sussex Chair Rodney Chambers said:

"Farming in Sussex plays an intrinsic part in shaping the landscape of our countryside. Many people in Sussex want to see animal welfare and sustainable farming encouraged and supported, not undermined by unfair pricing structures. Food miles are an issue too- if local farmers struggle to stay afloat then local people's shopping choices are reduced to environmentally damaging imports."

The two organisations are calling for:

• Consumers to only buy milk from retailers who pay dairy farmers a fair price for their milk. Currently, ASDA, Morrisons, and the Co-Op do not have pricing mechanisms that adequately reflect the cost of milk production.

• Milk processors and dairies (including Arla, Dairy Crest and Robert Wiseman Dairies) to commit to introducing a pricing mechanism that recognises the cost of production.

• The Government to ensure that the Groceries Code Adjudicator has the necessary powers to investigate contracts between farmers, retailers and processors to ensure farmers are being treated fairly.

Bill Bryson, CPRE Vice President, says: “If you do a fair day's work you deserve fair pay for what you produce. But for too long dairy farmers have been at the mercy of opportunistic price cuts that have driven more and more of them out of business.”

WSPA supporter and Dragon’s Den investor Deborah Meaden says: “I have been shocked by the recent unrest in the UK milk market – our UK dairy supply chain is currently weighted towards a situation where supermarkets and processors hold too much of the bargaining power. A fundamental rule of business is to be able to sell your product for more than it costs to make. Farmers need to be allowed to run a truly sustainable business model, otherwise we risk losing them from the industry and with them, cows in fields and a countryside that people recognise.”

Notes:

‘Farming Futures’ research carried out by CPRE Sussex 2004-2006

Pricing mechanisms: Sainsburys, Tesco’s, Waitrose and M&S have milking pricing mechanisms that reflect how much it costs to produce milk.

Fair contracts: Some retailers buy their milk direct from farmers and others from processors. It is therefore essential that milk processors also provide dairy farmers with fair contracts.

Groceries code adjudicator: Legislation is currently progressing through Parliament to create a new Groceries Code Adjudicator with the aim of increasing protection for farmers and suppliers from unfair contracts with supermarkets. It will ensure that large retailers treat them fairly by lawfully adhering to the Groceries Code. The new body is being established to enforce the Groceries Code after the Competition Commission identified competition issues in their 2008 market study. In particular it concluded that the market dominance of big supermarkets led to some suppliers being treated unfairly in the UK and overseas. If a retailer is found to have breached the Groceries Code then the Adjudicator would have wide ranging powers to effect remedies such as: issuing recommendations to solve the dispute; naming and shaming the offenders by publishing information; and imposing fines (if the Secretary of State considers that the other solutions aren’t working and grants the Adjudicator this power).

Photo by James Thorpe