MP blames supermarkets as price paid to farmers for milk is slashed again

PUBLISHED: 08:23 05 September 2014 | UPDATED: 08:23 05 September 2014

Sir Jim Paice speaking in Parliament

Sir Jim Paice speaking in Parliament

Archant

A supermarket price war and falling prices across the globe are continuing to put the squeeze on the UK’s under pressure dairy farmers, according to South East Cambridgeshire MP Sir Jim Paice.

Sir Jim is the chairman of First Milk, a co-operative which is owned by British farmers, and regularly reports to members on the state of the world market and the impact it has on prices.

In recent months Sir Jim, who keeps cows, has told First Milk’s farmers that a fall worldwide in dairy prices has forced a cut in prices paid to members.

In September, the price paid to farmers was cut by a further 0.65p per litre, following falls of 1.75p in August and 2p in June.

Sir Jim placed the blame for the fall on supermarket milk price wars and the fall in global prices.

He said: “Substantial increases in domestic production combined with falling world prices for cheese and milk powders, coupled with the price war for liquid milk in the supermarkets, have put prices under extreme pressure.

“I regret that we have had to make the cuts to the price we pay.”

First Milk supplies dairy products and ingredients to customers in national and international markets including block cheeses, soft cheeses, raw milk, butter, skimmed milk powder, whey proteins and sports nutrition brands.

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