EDDIE GILLANDERS
Dairy farmers in Scotland have taken their plea for a higher ex-farm milk price to reflect soaring dairy product prices to the UK Government in London.
NFU Scotland’s dairy committee chairman, Graeme Kilpatrick, told Farm Minister, George Eustice, that milk producers were continuing to shoulder unsustainable losses despite a significant upturn in the market.
“In the last seven weeks, there was been a seismic shift in the global dairy market but farm gate prices are lagging behind,” said Mr Kilpatrick. “Despite positive market signals, dairy producers still aren’t seeing increased returns to allow them to run a viable and sustainable business.”
Key dairy price indicators, which reflect the return from dairy commodity markets, have increased by 24% in the past month. The spot price of liquid milk is now over 35p a litre and cream prices are near record levels.
But, although milk processors have announced marginal increases in the ex-farm price, the average price farmers are being paid is still hovering at around 20p a litre.
Butter prices are up 60% compared to a year ago, skimmed milk powder 25% higher and mild cheese 20% as milk production has plummeted by 2.6 litres per day.
“The current market is moving quicker than farm gate prices,” said Mr Kilpatrick. “All market indicators are rising steeply but the farm gate price is not.”
Mr Eustice has agreed to meet the union again to discuss how the industry’s voluntary Code of Practice can be improved.
Thousands of Scottish hill farmers are still waiting for almost £10 million of support from the Scottish Government because of further IT delays in delivering the final tranche of payments.
Scotland’s less favoured areas support scheme delivers lifeline support to 11,500 of the country’s most vulnerable and remote producers in the hills and uplands.
It was agreed in March, following pressure from the union, to pay out 90% of payments in advance to bypass the government’s flawed computer system with the balance promised later in the year.
“For those farming in Scotland’s less favoured areas, there remains a £10 million hole in funding that would have traditionally paid in March with no timetable for delivery” said less favoured areas committee chairman, Martin Kennedy.
Market reports
Newton Stewart (Craig Wilson Ltd)
2764 prime and cast sheep. Lambs to £104 for a pen of heavyweight Texels to average 185p/kg and 680 ewes to £120 for Texels
Stirling (Caledonian Marts Ltd)
2246 prime lambs to 224p/kg for a Beltex cross and £105 per head to average 184p/kg (+7p on the week)
1172 cast ewes averaged £45.44 and 10 tups £74.80. 223 heavy ewes sold to £133 for Texels to average £66 and 660 export ewes sold to £60 to average £35
Oban (Caledonian Marts)
4123 store lambs and feeding ewes at annual show and sale of Blackface lambs. 2165 lambs (+ 502 on year) sold to £51 for the champion pen to average £32.21 (+ 50p)
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