The National Farmers’ Union (NFU) has a long-standing concern about obtaining a fair price for dairy farmers who sell milk to the major supermarket chains and similar outlets.

NFU Scotland is continuing its campaign for higher milk prices by writing to all the major supermarkets, processors and co-operatives pointing out producers have been hit by higher costs in recent months. Verbal commitments have now been secured from the major multiples and processors that the farm gate price must more fairly reflect production costs.

John Kinnaird, the president of NFUS, said: ‘This is a justifiable cost recovery from the producer’s perspective. We are acutely aware of the difficulties in ensuring price increases actually happen across all milk and dairy products.’

Discussion points 1 Why is the NFU (National Farmers’ Union) arguing for full cost pricing?
2 What view would you take of price negotiations if you were advising the milk buyer of a major supermarket chain?