First Milk has announced a milk price cut of 0.5pplfor members giving them just half a days notice, claims the NFU.
Suppliers were told the news late last Friday thattheir price for August 1 was being reduced.
NFU dairy board vice chairman Michael Oakes said:Two years ago First Milk signed up to the Voluntary Code of Conduct oncontracts in which they agreed to give at least 30 days notice of a price cut.In June they announced that they would no longer be giving this notice butannouncing a price cut the evening before it comes into force is totallyunacceptable.
What we need now, in such a period of marketuncertainty, is trust, transparency and good communication from milk buyers tofarmers this is what the Voluntary Code was trying to achieve. We understandthe difficulties facing First Milk and other milk buyers, but our dairy farmersdeserve and expect support and honesty during this market downturn, so I wouldurge all milk buyers to increase communication with their suppliers.
The NFU will continue its dialogue with First Milkto seek clarity on their long term plan announced in May.