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Get your free copyFirst Milk has said it might have to cut the price it pays farmers on its cheese contracts by 2p per litre, which would come into effect at the beginning of June.
David Handley, chairman for Farmers For Action, said, “We need 2p per litre more for liquid milk and with cheese, retailers need to give some of their margins to the producers.”
He also said that the industry was in a worse position than it was last year during the protests.
Nigel Miller, president of NFU Scotland, added, “Retailer attempts to drive value out of the liquid milk chain were exposed last summer and opposed by both the farming industry and the general public.
“Those same retailers are now resisting rises in wholesale cheese prices, pushing cheese processors to consider changes to their business strategy and denying the dairy farmers that supply them a fair return.”
However, First Milk has said it is still negotiating with its buyers to prevent price cuts from happening.