Milk Quota price & Drilling: Jan 10 2001
 | Don’t get lagged:
milk price will rise within 6-18 months to 21-22pl, therefore the market for
quota is at unrealistic lows and clients are advised to invest
now. For those who cannot extend long-term credit further - forward
lease at 3.5ppl - for as long as possible. |
| 5-day dry spell forecast,
if slurry spreading is getting in the way of drilling, set priorities and
attempt to collar the contractor or rope in neighbours. Check
Varieties |
Supermarkets
and processors are expected to increase the milk price for farmers within days,
according to industry experts.
"The current negotiating Milk Price Negotiating system is a for Poltroons and Knaves - we need a Dairy Compact - whose tenets are established in stone whilst quota's exist" - SBC
But,
in a random IFBN survey today, retailers appeared to be scared to be seen to be
making the first move. However, one said: “The price has to go up. It is only
a matter of time now.”
Kevin
Hawkins, of Safeway, told IFBN today that his company was “very aware”
of the problems within the dairy industry at the moment and suggested that the
retail price might have to be raised to increase prices for farmers.
“We
are scratching our heads over finding a way to move forward. We realise that
dairy farmers need more money for their milk, but we cannot afford another
increase to farmers through our margins.
“If
the dairies cannot afford to pay producers any more, one of the bigger retailers
have to take the plunge and increase the retail price. Others will then follow
suit.
“If
we have more flexibility in the retail price, there will be more room to
consider increases for farmers in the short term. Over the long term, I would
like to see some form of index which links farm prices to the retail price, so
that producers get automatic adjustments and we don’t have this annual public
bargaining.”
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ASDA spokeswoman Rachel Fellows told IFBN that the company was “staying
close to farmers and meeting them to see what is happening in the market”.
Although
she said that ASDA was not planning to pay farmers more today, she refused to
confirm or deny that it would increase the price tomorrow, or next week.
“We
only announce prices as and when we make them,” she said.
A
spokesman for Sainsbury’s said: “We increased the price for farmers by 2p a
litre in September, but we don’t have any plans for further increases now.”
Meanwhile,
Tesco spokeswoman Leonie Smith said: “We are monitoring prices
on a weekly basis. There are no plans to move at present, but we are
ready to move in line with the market.” She added: “The processors have not
asked us for any more money yet.”