THE Scottish NFU's milk committee is to call on Scotland's Government to investigate the whole milk marketing chain, to discover why prices for consumers have not changed despite cuts of
over 25% in the price paid to Scottish producers over the last four years.
NFUS vice-president Peter Chapman said: ''The union's milk committee was astonished at the Monopolies & Mergers Commission's report and its conclusions, following its long drawn out inquiry into the supply of raw milk.
''This report is historical. It has been 18 months in the making and is based on figures which are clearly out of date, and which have changed considerably - including Milk Marque's market share, which is central to the whole report. We had hoped the report would give a lead to the dairy sector, but instead, the uncertainty goes on.
''The report also claims that Milk Marque is abusing its monopoly power - yet British dairy farmers are receiving the lowest prices in years for their milk, and they're the lowest prices in Europe.
''Scotland's Parliament must investigate who is benefiting from these rock bottom prices. If it's not consumers, it's certainly not producers.
''I'll be asking Scotland's new Rural Affairs Minister to take a closer look at the way the food chain works, and its transparency, to ensure that producers and consumers alike are getting a fair deal.
''We also need to know why Government appears set against vertical integration in the sector. In Denmark, over 90% of Danish milk is marketed through vertically integrated
co-operatives, and the picture is similar in Holland. So why can't British producers emulate what's clearly a successful marketing system in Europe? Instead, we have to stand and watch as Britain acts as the sink for excess European production.
''The committee will be arranging a meeting with the National Farmers' Union of England and Wales, Milk Marque and Scottish Milk to help put together a strategy for the co-operative sector.
''Our industry needs to be allowed to seek out new markets and develop new products.
''We're looking for a fair deal for producers which also ensures good value for consumers.''
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