Council raises concerns about impact of milk payment changes on county farmers

The Leader of Shropshire Council is to write to Sir Jim Paice, chairman of First Milk, to express concern about the ‘devastating impact’ on Shropshire’s farmers of deferring payments for supplied of milk.

Councillor Keith Barrow said:

“Shropshire Council has important and strong links with the farming industry and rural community in the county. We have been extremely concerned to learn of the pressure which has now been placed on dairy farmers who are members of First Milk, as a consequence of deferring their payments for supplies of milk and reducing their net payments through capital contributions and price cuts.

“The feedback we have had from farmers is that these policy changes within First Milk will have a devastating impact on farmers’ cash flow and the future sustainability of their business.

“We recognise that these actions are a consequence of extremely volatility on the global dairy market and we will be speaking to stakeholders in the county, such as agricultural suppliers and banks, to encourage an understanding and sympathetic approach to transactions with farmers impacted by market volatility and the actions of First Milk.

“Shropshire Council aspires to see sustainable and profitable dairy supply chains, which start with efficient and profitable dairy farming businesses. Dairy is vitally important to the Shropshire economy and Shropshire Council will be looking for all opportunities to assist farmers, by developing the dairy industry.

“I will therefore be writing to Sir Jim Paice to make him aware of these very serious concerns.”