The Militant (logo)  
   Vol. 68/No. 47           December 21, 2004  
 
 
UK farmers resist milk price cuts,
intimidation by milk distributors
 
BY PETE CLIFFORD  
GRANGEMOUTH, Scotland—Seventy farmers from across Scotland blockaded the ASDA supermarket distribution center here November 28 to protest recent cuts in the price of milk they sell to distribution companies. For several hours the farmers’ action prevented ASDA trucks from leaving the depot to make their deliveries.

“We’re here to press our case on the price cuts and also because we won’t be bullied,” said one of the protesters. The farmers were acting in defiance of legal threats made by ASDA after a round of pickets throughout England November 18 (see “UK farmers protest price cuts from milk distributor” in December 7 Militant). According to the Financial Times, ASDA wrote November 19 to members of Farmers for Action (FFA), which has spearheaded the protests, indicating it would seek an injunction to stop the pickets as well as sue the group for legal costs and compensation.

Many who joined the latest protest were further angered by ASDA having put a banner outside the depot reading: “ 0.50 pence increase in the bag—ASDA doing its bit for British farming.” ASDA, which is owned by Wal-Mart, the world’s largest retailer, has recently cut from three to one its distribution suppliers. Following this step, ASDA’s remaining supplier, a milk processor company called Arla, imposed a 0.50 pence a liter cut on farmers, except to those whose milk goes exclusively to ASDA.

Responding to ASDA’s claim that it was trying to help farmers, David Handley, spokesman for FFA, said, “There’s an impression given that supermarkets are looking after the farmer and the consumer, but it’s a myth. They are profiteering on the backs of both of us.”

“We only get 17p a liter,” said John Cummings, a Stranraer dairy farmer, “yet it sells in the supermarket for 50p.” Commenting on the legal threats, Cummings said, “We want to warn ASDA that we won’t go away. We can’t afford not to fight.”

In fact, the price cuts for dairy farmers are devastating many. Government figures reveal farmers receive between 17.13p and 19.37p a liter of milk. To break even, however, farmers need on average 20p, and as high as 23p if unpaid family labor is taken into account. According to the Financial Times, over the 12 months leading up to October, 1,072 dairy farmers left the industry in England and Wales—6 percent of the producers, or almost three a day.

Following the price cuts, Robert Wisemen Dairies, the chief rival to ASDA’s supplier Arla, also cut its price to farmers by 0.5p a liter on December 1.

Responding to this move, FFA’s Handley said the cut was indefensible and could lead to further action against Wiseman and its main customer, the supermarket chain Tescos.  
 
 
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