MPs probe milk price cuts crisis
Filed under: News
More than 2,500 farmers gathered in London last week to protest about cuts of up to 2p a litre in the amount they receive from major milk processors.
The latest cuts will see farmers being paid around 25p a litre for milk, compared to more than 30p it costs to produce.
Farmers are warning the cuts will lose them tens of thousands of pounds at a time when they are also facing rising feed costs and the impacts of having to keep cows inside in the bad weather.
They accuse some of the biggest retailers and processors of failing to pay a price that reflects production cost, and say that many farmers are locked into contracts for long periods but only get a few days' notice of price changes.
The Government has announced an extra £5 million from the rural economy grant scheme to help dairy farmers be more efficient, but insists it is not for ministers to try to set the price of a litre of milk.
Appearing before the House of Commons Environment, Food and Rural Affairs Committee will be Pembrokeshire dairy farmer and chairman of the National Farmers Union Dairy Board Mansel Raymond, Asda's director of external affairs Paul Kelly and Mike Sheldon, group milk procurement director at Dairy Crest.