Arla Foods will rescind the price cut it imposed on dairy farmers by the end of August, according to David Handley, chairman of Farmers for Action.
Handley warned that FFA planned to step up its direct action against Arla, and the retailers it supplies, with a view to turning around its decision last month to cut the price it pays for raw milk by 0.35ppl.
Speaking to The Grocer on his farm in Monmouthshire, Handley rejected Arla’s reasoning that the price cut had simply been a reaction to one made by rival dairy processors six months earlier. “The market has changed since then. As a result of the action that we took last year, we got an increase in
price. We, as well as retailers, actually thought this meant we were going into a period of stability. Then, out of the blue, Arla cuts its price,” he said.
Handley hinted that his relationship with Arla was not as fractious as news headlines might suggest. “I’ve known Tim [Smith, Arla Foods chief executive] for six years and he’s fully aware of where I’m coming from and why.” He added that a reversal by Arla would mean that Robert Wiseman Dairies would follow suit, rescinding its latest price cut.
Handley reinforced his determination to launch a Europe-wide milk price campaign in collaboration with dairy farmers abroad later this year. He would not be drawn on details of the campaign, but said farmers would work as a network. “For example, if we were to call for a national producers strike, our European counterparts - whom retailers would usually go straight to - would not work with them.
“Some might say this is holding people to ransom, but it’s a sad state of affairs that things have gone so far.”
Rachel Barnes
Handley warned that FFA planned to step up its direct action against Arla, and the retailers it supplies, with a view to turning around its decision last month to cut the price it pays for raw milk by 0.35ppl.
Speaking to The Grocer on his farm in Monmouthshire, Handley rejected Arla’s reasoning that the price cut had simply been a reaction to one made by rival dairy processors six months earlier. “The market has changed since then. As a result of the action that we took last year, we got an increase in
price. We, as well as retailers, actually thought this meant we were going into a period of stability. Then, out of the blue, Arla cuts its price,” he said.
Handley hinted that his relationship with Arla was not as fractious as news headlines might suggest. “I’ve known Tim [Smith, Arla Foods chief executive] for six years and he’s fully aware of where I’m coming from and why.” He added that a reversal by Arla would mean that Robert Wiseman Dairies would follow suit, rescinding its latest price cut.
Handley reinforced his determination to launch a Europe-wide milk price campaign in collaboration with dairy farmers abroad later this year. He would not be drawn on details of the campaign, but said farmers would work as a network. “For example, if we were to call for a national producers strike, our European counterparts - whom retailers would usually go straight to - would not work with them.
“Some might say this is holding people to ransom, but it’s a sad state of affairs that things have gone so far.”
Rachel Barnes
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