MSPs To Hold Milk Pricing Inquiry
Supermarket bosses will be called before MSPs to explain what they are doing to protect farmers while they are selling milk at ``unsustainable prices''.
Supermarket bosses will be called before MSPs to explain what they are doing to protect farmers while they are selling milk at unsustainable prices''.
The price of a two-litre carton of milk has dropped to ÂŁ1 in many supermarkets and dairy farmers are now paying more to produce the milk than they are getting back from processing firms, MSPs said.
Leading dairy producer First Milk this week announced that it was delaying payments to farmers amid falling milk prices, prompting an urgent inquiry by Holyrood's Rural Affairs Committee.
Convener Rob Gibson said: First Milk's actions represent only the latest devastating blow for dairy farmers.
Since 2002 there has been a steep decline in the number of dairy farmers in Scotland, defeated by rock-bottom prices and rising costs.
The committee is urgently seeking to address the plight of our dairy farmers.
It is crucial that we work to find a way to supply milk at a reasonable cost that can sustain the dairy industry in Scotland.
In the coming weeks we will be taking evidence from those on the frontline: the dairy farmers themselves.
Milk is a staple for most Scottish households. But many dairy farmers are now having to supply processors at less than the cost of production while the supermarkets are selling milk at unsustainable prices.
We want to see a good long-term future for the industry in Scotland and, therefore, we will be looking for explanations from the processors and supermarkets on the steps they are taking to address what is a very worrying situation for the country, the industry and individual producers.''
The Rural Affairs, Climate Change and Environment Committee's inquiry into milk pricing will commence with an evidence session on January 28.
Rural Affairs and Food Secretary Richard Lochhead said: Farmers must be paid a fair price for what they produce.
Like the committee, I agree that the decision by the supermarkets to sell four pints of milk for as little as 89 pence raises serious questions.
I have already called for retailers to do more to support Scotland's hard-working dairy farmers and processors.
It is also important to recognise that volatility in the global dairy market is making a major contribution to the serious short-term challenges facing Scotland's dairy sector.
When I met the NFUS and other dairy industry representatives earlier this week, we were in agreement that the medium and long-term prospects for Scottish dairy remain positive with predictions of a rise in global demand in future.
The Scottish Government and our agencies are doing all we can to support our dairy companies, such as First Milk, to respond to current volatility, develop their businesses and to take advantage of new market opportunities here in Scotland and beyond, and I look forward to updating the committee on this work in due course.''
Scottish Labour's rural affairs spokeswoman Claudia Beamish said: Dairy farming is a hugely important industry in Scotland but price cuts pose a real threat to the livelihood of individual farmers.
Action is needed to address the imbalance that exists in favour of big retailers to create a level playing field.
I'm pleased that the committee has reacted to the current price crisis to focus attention on how to support the industry at this challenging time.
The inquiry will also be an opportunity to consider the importance of diversification and maximising opportunities for other dairy products like cheese.
With 2015 marking the Year of Food and Drink we need to see renewed focus from the Scottish Government to deliver the best deal for Scottish dairy farmers.''