Farmers' Milk Payment Cut Condemned

A further cut in the price dairy farmers are paid for their milk is deeply disappointing, the Rural Affairs Secretary has said.

Richard Lochhead said he would be in urgent touch'' with bosses at First Milk about the reduction, which will see some farmers paid 1p a litre less for milk.

The dairy company, which is owned by British farmers, last week confirmed a loss in the region of £22 million for 2014/15.

It has recently launched a turnaround plan aimed at reviving the fortunes of the struggling dairy sector.

Mr Lochhead said: A further cut in payments is deeply disappointing and a further blow to the 350 or so Scottish dairy farmers that supply First Milk.

Everyone hoped the worst was over and this comes just when a turnaround programme is being put in place by the company.

It's clear that First Milk's turnaround programme must deliver soon. Meanwhile, the Scottish Government is committed to doing all we can to help dairy farmers during these volatile times and we are working hard to implement our dairy action plan.

Only last week at the Royal Highland Show, a new dairy brand was unveiled to help capture valuable export markets for value added products like cheese and butter. We are also providing help with transport costs for Bute dairy farmers and offered finance towards the Campbeltown Creamery.

We will be in urgent touch with First Milk about these further cuts and progress with their wider turnaround plan. I look forward to meeting with the new chairman of First Milk when he or she comes into position to discuss the ways in which we can work together to ensure the future of First Milk's members.''