Robert Wiseman Dairies and Arla Foods have followed the lead of First Milk and Dairy Crest by shelving controversial price cuts planned for next week.
Arla’s 2p per litre cut was the deepest announced by the major processors. Wiseman had planned a 1.7ppl reduction in the farmgate price of milk. Both cuts were set to take effect from 1 August.
Wiseman said it recognised “difficulties for farmers” including “a period of adverse weather conditions and rising feed costs”.
“We have been engaging with our customers with regards to the exceptional circumstances facing the supply chain and the need for urgent and significant support,” Wiseman said in a statement.
“From our discussions to date, we are confident this support will now be demonstrated. We welcome whole industry recognition of the difficulties facing farmers and the acknowledgement that fresh milk processors, even those that are as efficient and well invested as Wiseman, are under severe financial pressure.
“We have confidence that we can work with our customers and farmers to address the obvious challenges that exist.”
Arla head of milk procurement Ash Amirahmadi said: “We have agreed a transparent reconciliation method with our customers and our supplying farmers to demonstrate that all of the money recovered from the marketplace has been paid out in full.”
Yesterday Dairy Crest announced a two-month delay to its proposed 1.65ppl price cut. Soon afterwards, First Milk said it had opted to “immediately withdraw” its own 1.7ppl reduction.