First Milk, the farmer-owned cooperative, has announced that from January 1st the price it pays for milk for its manufacturing pool will be reduced by 1.1p per litre (ppl) to 22.9ppl, while milk destined for its liquid pool will be cut by 1p to 21.7ppl.

First Milk, the farmer-owned cooperative, has announced that from January 1st the price it pays for milk for its manufacturing pool will be reduced by 1.1p per litre (ppl) to 22.9ppl, while milk destined for its liquid pool will be cut by 1p to 21.7ppl.

As the current crisis in the dairy sector deepens, NFU Scotland held a meeting this week with NFU for England and Wales, NFU Cymru, Ulster Farmers Union and staff from the Unions' Brussels office at Ingliston, near Edinburgh to discuss the situation.

There was recognition that while there may be no quick fix to the problems faced across the UK dairy industry, activity at a national, UK and European level can make a difference and drive stability and confidence.

Gary Mitchell, NFUS Milk Committee chairman who organised the meeting commented: "The lack of transparency in the liquid sector needs to be addressed, as does the seemingly slow response of retailers to wholesale and farm-gate cuts. While the retail price of cheese and butter on shop shelves has risen year-on-year, wholesale prices for these staple products have crashed by 30 to 40%. Growing retailer margins at a time of farm-gate cuts is an issue the unions will challenge.

"The issue of volatile markets must be addressed and the European Union has tools at its disposal. The UK unions continue to lobby for Europe to make a more robust approach to supporting the sector. Specifically we are calling for the Commission to analyse and review the reference price set for intervention, which we believe needs an upward correction to make it relevant.

"The potential of Financial Risk Management tools being considered in Europe must be developed further and we will analyse and where appropriate encourage Government and Commission to consider the "Margin Insurance" scheme being introduced in America.

"Promotion of dairy products is also key. UK ministers must tackle a dairy balance of trade deficit of £1.357bn. Of the 732,000 tonnes of cheese we use, 432,000t is imported. In terms of butter, of the 205,000t we eat, 105,000t is imported. The unions are committed to working together and with other stakeholders on promotional activity. EU promotional funds are available but the UK must get access to these."

Market round-up

Messrs Craig Wilson Ltd sold 871 prime lambs in Newton Stewart yesterday to a top of £87.50 per head and 195p per kg to average 176p (+1.8p on the week).

There were also 330 cast sheep forward when ewes sold to £107 for Suffolks and £75.50 for Blackfaces.