DOUGLAS MACSKIMMING

AN EU summit next month may hold the key to helping the UK’s beleaguered dairy and lamb sectors.

That was the hope following a meeting in London involving Defra secretary Liz Truss, Scottish cabinet secretary Richard Lochhead, and farming leaders from across the UK, held in the wake of dozens of protests over falling prices.

Farming ministers and industry leaders have agreed to work together on a list of commitments for the supermarkets and the food service sector, covering issues such as branding, contracts and sourcing – initially for milk, but with a view to extending it to other products including lamb – which should ensure farmers start getting a fair price for their produce.

They also agreed to undertake further work together in preparation for an EU summit in September.

Mr Lochhead said: “There is no doubt that the farming industry is facing serious challenges, with farmers not even getting back the cost of production. This is a global issue and we need urgent action at a Scottish, UK and EU level to support the industry.

“I am pleased that farming ministers and industry leaders from across the UK will now urgently agree a list of commitments to support farmers that we will ask supermarkets and the food service sector to sign up to, including action on sourcing, labelling, contracts and contract conditions.

“We need to act before it’s too late and this will help make sure that happens and I encourage the food industry to step up to the plate and support farmers in their hour of need to prevent any potential loss of supply,” said the CabSec.

“However, this is a global issue and we also need the EU Commission to do more. That is why we will closely investigate how the EU can best help the sector and ensure this is raised at the forthcoming summit to ensure farmers get the help they need at every level.”

After the London meeting, Ms Truss said: “A global surplus of milk is causing low prices around the world – well beyond the control of farmers. I want to see this situation taken seriously by the EU, who have the means to help farmers manage this volatility and build resilience.

“That is why when I meet agriculture ministers next month I will be emphasising the need for a futures market and insurance for dairy products – as they already have for cereal farmers – to give them long-term security over price.

“We are also urgently setting up a new working group with the UK farming ministers and the Agriculture and Horticulture Development Board to develop best practice models with the industry,” she added.

After the meeting, NFU Scotland president Allan Bowie commented: “There was agreement to work together on a list of demands and actions to be put to the UK retailers and food service sector to seek a commitment from them on sourcing, labelling and promotion.

“Part of the solution to the price crisis lies with Europe,” he added. “Ahead of the emergency EU farming summit on September 7 all parties agreed to work on a list of UK demands to deal with volatility and build resilience into the industry that will be put in front of the European Commission.”

For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk