Dairy farmers have to stand up to retailers to ensure that they do not have to pay for the latest round of price cuts in supermarkets, the dairy board chairman at the National Farmers’ Union (NFU) has said.
Gwyn Jones said that the move by major supermarkets such as Tesco could well damage the confidence of farmers in the run-up to the autumn.
While he suggested that most Sustainable Dairy Group farmers will be protected from price increases because of the relationships they have forged with Tesco, some will be at risk.
Jones said that he is not “convinced” that supermarkets will be able to soak up the price rises themselves.
“We will not lie in wait for the inevitable margin slashing that we still bear the scars of. Farmers have to protect themselves. The NFU has long been calling for better contracts in the dairy industry, which offer greater clarity, transparency and stability for dairy farmers,” he said.
The organisation met up with Tesco to get reassurances that farmers will not be left to pay the price for promotions.
