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UK dairy producers & processors reach draft deal

An agreement of sorts in the dispute between U.K. dairy producers and processors on Monday. Farmers in the United Kingdom have been protesting a planned two-pence-per-liter cut in their milk price scheduled for August 1st which is in addition to cuts made earlier this year. The draft deal processors would give a “sensible” notice period before changing prices and farmers would have the option to pull out of a contract and negotiate their own deal.

The agreement is voluntary and the details are yet to be worked out. Government officials say if it does not work, they could legislate a solution.

UK National Farmers Union president Peter Kendall says while the deal provides some hope for dairy producers it does not solve the main issue, the roll-back in pay prices while the cost of production has gone up. Kendall says his group will focus on rescinding the August 1 cut and reinstating the earlier cuts. By Tuesday afternoon, four retailers had announced they would increase the price they pay for milk from 2 to 5 pence per liter. So far the three large UK dairy processors, Dairy Crest, Wisemans and Arla have not backed-off on their plans to cut the price they pay to producers.

The number of dairy producers in the United Kingdom has slipped under 11,000 and the nation no longer produces enough to meet its demand.