End in sight for milk war as farmers strike a deal

A ‘MILK war’ truce appears close, after the dairy industry and producers reached an agreement in principle.

Farmers had reacted with fury when middle-men tried to cut the price they pay for milk to 25p a litre. Thousands blocked dairies and distribution centres in Somerset, Shropshire and Worcestershire at the weekend to prevent deliveries to shops, claiming the price cut would put them out of business.

However, a voluntary agreement was reached following hours of negotiations yesterday. It stipulates that buyers have to give ‘sensible’ notice for changing their prices – so farmers can back out of long-term deals.

The row was triggered when dairy firms Arla Foods, Dairy Crest and Robert Wiseman threatened a cut of up to 2p in wholesale prices

‘We are more united than ever’

on August 1, following a 2p cut in April, to compensate for falls in the price of cream on global markets. Farmers said the shortfall would force them out of business, as the selling price would be lower than the cost of producing a pint.

The industry body Dairy UK said it was ‘very pleased’ with the voluntary code of practice agreed upon yesterday, but added more work was needed to implement it.

Peter Kendall, the National Farmers Union president, said the deal ‘will give us the architecture we need’, but added: ‘The farming community is more united than ever before and the strength of feeling on this dairy issue is increasing and not decreasing.

‘We will spend the rest of this month collectively throwing 100 per cent of our efforts into reversing the price cuts from earlier this year.’