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Dairy farmers need protection from falls in the price of milk, say MPs

Dairy farmers need greater protection in the face of sharp falls in the price of milk, MPs have said. Since last summer the dairy industry has been hit by significant falls in milk prices in the face of rising supply and falling demand, particularly from China and as a result of the Russian trade ban. The sharp reversal in fortunes, coming after prices hit their highest level for several years, has been driving dairy farmers out of business every week, with the total number in the UK falling to below 10,000 for the first time.

The volatility of worldwide and domestic milk markets is making financial planning and investment impossible for small-scale producers unable to hedge against changes beyond their control. Anne McIntosh, chairwoman of the Environment, Food and Rural Affairs (Efra) Committee

MPs called for ministers to help dairy farmers tap into worldwide export opportunities and press for clearer “country-of-origin” labelling so that consumers know if they really are buying British, and for an EU review of the protection against very low prices. In a report on dairy prices, the MPs also called on farmers to consider forming “producer organisations” to increase their clout in the market.