Thousands of dairy farmers are expected to mount new blockades of milk processing plants on Thursday night in what some activists say will be their biggest demonstration to date.
Following a series of protests over the last week, the latest blockade will spread from processing plants to some supermarket depots. Early estimates suggested more than 2,000 farmers and their supporters will take part.
This week the farming minister, Jim Paice, announced a government-brokered draft deal between the farmers and processors, paving the way for a voluntary code, but the National Farmers Union said the deal did not allay its concerns.
Farmers are angry about cuts to the price they are paid to produce milk. Over the past few months milk processors including Arla, the owner of the Cravendale, Lurpak and Anchor brands, and Robert Wiseman have cut the amount they pay their producers.
Processors say they have no choice because the selling price of cream on the commodities market has fallen sharply over the past 12-18 months. But farmers and their representatives say current payments do not cover their production costs and will force many out of business this winter.
Andrew Hemming, vice-chairman of Farmers for Action, and one of the protest organisers, said: "Farmers are good guys but … we will continue this course of action until we get some commonsense and get the price cuts rescinded. We are not asking for more money, we are just asking for what was there before."
The National Farmers Union said the cost of production was around 30p per litre (ppl). If all the cuts come into force next month farmers will be paid about 25ppl.
Some supermarkets have increased the premium they pay to farmers, but unions say the rise is not enough to cover their costs.
Asked who was profiting from the shelf price of milk, Robert Newbery, chief dairy adviser for the NFU, said: "Retailers are making the most money. The processors are making some but they have been selling the milk too cheaply [to supermarkets], they've been cutting their throats to increase their market share and the farmer bears the brunt."
The farmers' action is beginning to have an impact. Dairy Crest, one of the milk processors, announced on Thursday that it was setting aside the milk purchase price cut, due to be implemented on 1 August, for two months. First Milk has ditched its planned cut.
Mike Sheldon, milk procurement director at Dairy Crest, said: "We are in no doubt about the difficulties that the farmers affected by the forthcoming August price cut have been facing. Our bold move to set aside this cut for two months will allow us to continue to work with our farmers to find long-term solutions. We remain committed to paying fair milk prices, a commitment fully demonstrated by today's decision."
