The French government coughed up €600 million to help support French farmers who are protesting and blockading French cities, by dumping food and manure on the roadways.
The call comes after Arla Foods became the latest processor to cut its milk price. Arla will reduce the price it pays its UK members by 0.8 ppl (1.13 c/l) to 23.01ppl (31.44 c/l) from 1 September.
Bob Harrison, dairy board chairman of NFU (National Farmers Union) held talks with DEFRA (Department of Environment, Food and Rural Affairs) Minister George Eustace to discuss the potential fallout from the current problems.
The NFU man said “we desperately need the government’s help to ensure a fully functioning and fair dairy supply chain.
"Now is time for action, just this week we’ve seen the French government provide a list of support measures and financial backing to help their farmers through this difficult period.”
Arla’s cut follows similar cuts from First Milk, Dairy Crest and Muller UK &Ireland this year.
NFU claimed that dairy farmers across the UK are struggling and the market outlook for the remainder of this year and into 2016 is not positive.
Bob Harrison called on dairy farmers to talk to their banks now before the situation got worse and to open honest communication with milk buyers on future market prospects.
He said “with the outlook bleak for the foreseeable future I’d call on fellow farmers to talk to their banks, feed merchants, suppliers and business consultants now, before things get far worse, and utilise the resources available at Agricultural Horticultural Development Board dairy to help ride out this storm as best we can.”
The NFU is working in coalition with FFA (Farmers For Action), TFA (Tenants Farmers Association) and others to help signpost help for the short term and find agreed solutions for the long term.
Ash Amirahmadi, head of UK milk and member services said “the situation is not helped by high milk production throughout the world, while demand from China and Russia, continues to be low. These global developments are impacting all dairy markets throughout the world.”