Lots of talk but not a lot of action

[ilovemilk90]

Dairy farming has had a challenging few years to say the least. this year in particular has shown how vulnerable some industry's are.
There will be many who will not have much of a future in this industry after the dust has settled from the Covid-19 crisis.
The double standards of milk contracts has been highlighted by many on this forum, how one sided they are, and how action should be taken. However no action has even been taken.

so here is my question to all, why has nobody created a trade union for dairy farmers to pursue the collective interest of this industry ?

A group of trusted individuals to negotiate fair and equal terms of trade with milk processors.

 

[M-J-G]

Do you have anyone in mind?
How do we go about forming this group?
Do we vote them in or recruit them?

Not being awkward and I'm not a dairy farmer, but I like the idea of what you are talking about it for other sectors.

 

[deleted user 837354]

Some farmers are invested in Arla, a multinational farmer owned coop. Why would/should these farmers seek to add their voice to another organisation to represent them?

Other farmers have contracts to supply various retailers for whatever reason but one presumes they find the arrangement advantageous.

The problem you thus have is that the dairy sector is not one homogenous entity with all players seeking the same end result.

 

[Sid]

RABDF?

 

[Headless chicken]

We used to it was called the mmb

 

[roscoe erf]

is farmers for action still going ?

 

[Sid]

is farmers for action still going ?

Very noticable by their silence

 

[kiwi pom]

Dairy farmers are no different from any other industry in that they are competing with one another. If everyone could sign up to just one processor today at a quid a litre but no unapproved expansion it would be great but within 6 months somebody would be doing a deal with someone else because they weren't happy and it'll all start again.
How you get everyone to agree and work together, I have no idea.

 

[deleted user 837354]

Dairy farmers are no different from any other industry in that they are competing with one another. If everyone could sign up to just one processor today at a quid a litre but no unapproved expansion it would be great but within 6 months somebody would be doing a deal with someone else because they weren't happy and it'll all start again.
How you get everyone to agree and work together, I have no idea.

You don't: there are laws that prevent big companies from colluding to manipulate a marketplace and some big firms have been fined heavily for it.

 

[Bald Rick]

Dairy farmers are no different from any other industry in that they are competing with one another. If everyone could sign up to just one processor today at a quid a litre but no unapproved expansion it would be great but within 6 months somebody would be doing a deal with someone else because they weren't happy and it'll all start again.
How you get everyone to agree and work together, I have no idea.

I don't think we are competing with each other at all TBH.
Our customer is our milk buyer - end of. So we need to supply what they want & require.
Whilst contracts are usually loaded in the buyers favour - such as notice periods - it does have to be noted that there isn't a great deal one can do as in some areas there are very limited options for milk collection so you are stymied from the off.
Finger in the air, I guess we could look to 3 buyers including our current one so not a lot of choice there

 

[Tarw Coch]

RABDF?

We used to it was called the mmb

is farmers for action still going ?

RABDF run the best dairy show into the ground
Plenty of farmers wanted the end of the mmb and plenty were against anything ffa did.

I don’t think you’re ever going to get enough to agree on a plan

 

[milkloss]

It's a shame. Farmers could do with a Union of some sort really.

 

[RJ1]

You don't: there are laws that prevent big companies from colluding to manipulate a marketplace and some big firms have been fined heavily for it.

There's absolutely no problem with occupying a dominant position in a given market. It's the abuse of that dominant position which gets the competition authorities exercised.

Many farmers in Europe are members of co-operatives and Producer Organisations which cover a significant part - and sometimes the majority - of a market. There are competition law cases - sometimes they win, sometimes they lose, but at least they're in the game. They have market power and if they use it sensibly, everyone gains.

The history of co-ops in the UK is disappointing with, as mentioned, people jumping ship for small short term gains rather than building something sustainable for the long term. I see the idea that each farmer that has 0.diddly squat of the market on his own is in competition with his neighbour bonkers. A processor must be thinking of that argument as he's laughing all the way to the bank! Why should my neighbour be a competitor if by working together with him, we could both increase price received?

I still think that to be able to do anything bar write letters and shout from the sidelines when the next downturn hits, farmers need ownership and access to processing.

Call them co-ops, companies, whatever you want. But they need to be well governed. I think that with enough like-minded farmers (in any sector), all willing to think strategically, looking at long term stability, a better future could be had. If not, we can all whinge the next time too...

 

[dinderleat]

In the current situation would anyone want the jeopardize their milk contract? Who is actually recruiting?

 

[RJ1]

In the current situation would anyone want the jeopardize their milk contract? Who is actually recruiting?

I don't for one minute think this would be rushed. It would need to be planned and, if possible, supported by government in a bid to restructure and support the industry as it moves away from support payments and deals with the challenges (opportunities ?) of Brexit and becomes more commercial. It would be nice to see the new structures have time and support to gain stability instead of the historic predatory moves by established processors to destabilise something they know will force the price upwards to a more sustainable level if allowed a foothold.

 

[Bald Rick]

I don't for one minute think this would be rushed. It would need to be planned and, if possible, supported by government in a bid to restructure and support the industry as it moves away from support payments and deals with the challenges (opportunities ?) of Brexit and becomes more commercial. It would be nice to see the new structures have time and support to gain stability instead of the historic predatory moves by established processors to destabilise something they know will force the price upwards to a more sustainable level if allowed a foothold.

I wonder how many dairy farmers actively take part in stewardship - English, Welsh, Scottish, N Irish - schemes?
Personally I couldn't even be bothered with as simple a scheme as Tir Cynnal as it (a) offered very little in terms of payments (b) added more paperwork (c) added another layer of potential inspections/lanyard wearers - and that was bog standard.
Now with the proposed "public goods" schemes, I cannot envisage many dairy farmers wanting to take part.
Answers on a postcard

 

[RJ1]

I wonder how many dairy farmers actively take part in stewardship - English, Welsh, Scottish, N Irish - schemes?
Personally I couldn't even be bothered with as simple a scheme as Tir Cynnal as it (a) offered very little in terms of payments (b) added more paperwork (c) added another layer of potential inspections/lanyard wearers - and that was bog standard.
Now with the proposed "public goods" schemes, I cannot envisage many dairy farmers wanting to take part.
Answers on a postcard

Well, BPS is (despite the greening element) a straightforward payment for occupying land. That will go, so there will be a reduction in income for the large number who receive it. Other support schemes/public goods will, I assume, be assessed by a business to see what makes most sense and taken up or refused accordingly.

But I think if you had control over your product and marketing (home and abroad), there's a potential for certain requirements to be set by your own organisation (environmental etc) which supplier members must meet. These would, managed correctly, help market the product, perhaps giving an edge in the marketplace. This then makes the inspections something which contribute to the bottom line and, perhaps, worthwhile.

 

[Bramble]

In the current situation would anyone want the jeopardize their milk contract? Who is actually recruiting?

There must be a few people recruiting. Some Freshways suppliers have found a new home. I was contacted last week out of the blue by a different buyer.

Maybe none of the mainstream ones are recruiting st the moment, but a buoyant spot price at the moment suggests someone somewhere is wanting milk.

 

[pappuller]

In the current situation would anyone want the jeopardize their milk contract? Who is actually recruiting?

quite agree, some of the farms that are for sale round the country you do wonder how easy it would be to get a good milk contract ?

 

[Tarw Coch]

Well, BPS is (despite the greening element) a straightforward payment for occupying land. That will go, so there will be a reduction in income for the large number who receive it. Other support schemes/public goods will, I assume, be assessed by a business to see what makes most sense and taken up or refused accordingly.

But I think if you had control over your product and marketing (home and abroad), there's a potential for certain requirements to be set by your own organisation (environmental etc) which supplier members must meet. These would, managed correctly, help market the product, perhaps giving an edge in the marketplace. This then makes the inspections something which contribute to the bottom line and, perhaps, worthwhile.

That’s an optimists view, it could just as easily turn into more hoops to jump through to carry on as we are, similar promises were made of the benefits of farm assurance , there were times when I received more for my milk with the mmb than I do today, and I’m not supplying one of the processors who’s taking the p!ss on current milk prices