The NFU has praised today?s announcement that Asda is to raise First Milk?s cheese price by £400/tonne but is also calling for retailers to increase the price of raw milk immediately in order to encourage confidence in British dairy farming.
Consumers face price increases of 3p on a pint of milk because of a shortage caused by the wet weather. This has meant that dairy cattle have had to be kept in sheds and fed on silage rather than grass which reduces the amount of milk that they can produce.
The threat of high prices was signalled yesterday when First Milk, Britain?s largest dairy cooperative, declared force majeureon August milk prices. This is invoked only when circumstances beyond the control of a supplier prevent the terms of a contract being fulfilled.
Industry leaders warn that the prices paid to farmers must rise from 20p to at least 25p a litre.