News

He cited growing world demand, which should drive prices, profits and an opportunity for investment.

We would always be able to grow grass and produce milk, and some retailers were setting up ‘proper’ supply chain relationships, he said.

There was clear evidence the Government was waking up to the need to produce food and farming’s role - but we still require from Defra some indication of targets for agricultural production. “All we have had so far are targets for the environment,” he said.

Dairy farmers needed more certainty over milk price. Mr Kendall slated the fact milk producers had still, in the main, seen very little back from the marketplace at a time when commodities were strengthening. Many ex-DFB producers were still on a milk price below 20ppl.

He said there were lessons to be learned from DFB’s demise. There was a need for top class managers who must be accountable.

Co-operative businesses should be subject to much closer financial scrutiny and on a par with that required by investors in plcs, he said. It was increasingly important for producers to minimise their vulnerability in supply contracts with milk buyers.

Source - Farmers Guardian