Farmers for Action Claims It Has The Formula For Dairy Price Stability

Protest group Farmers for Action (FFA) has proposed an alternative milk pricing formula that it claims could bring control and ‘price stability’ back to the dairy industry.

It was published this week, hours after Muller and Dairy Crest joined Arla and Tesco in announcing more dairy price cuts. These prompted renewed calls for direct action from the FFA, with Chairman David Handley urging members to “leave a free date in your calendar for the next 10 years.”

He said the FFA’s formula proposals deserved a “full and open consultation that would allow the British dairy industry to go forward as a complete supply chain.”

The FFA proposes an ‘A price’ – a standard litre price paid by the processor based on the production of each producer at the end of the 2014/2015 milk year – and a ‘B price’ triggered if producers exceed the base year’s production by more than 5% without the processors consent.

Handley said the ‘B price’ would be based on returns received by the processor from the open market and “could be considerably higher or lower than the standard litre price.”

The formula would promote “self control” by farmers on supply, added Handley, but would not hinder entrepreneurial farmers. He claimed it would also remove “supply and demand issues” affecting the industry.

FMCG Industry Consultant Hamish Renton described the formula as interesting and thoughtful,” but warned it could see the UK miss out on huge amount of post quota growth on export markets.” Interested in opening up a conversation about Farmers for Action claims? Get in touch with our dedicated team of FMCG experts today.

Alternatively, if you have a dairy product or brand and would like to speak to our team, contact us today by phone, email or contact form. A member of our friendly team will happily take your call and help in any way we can.

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