The Dairy Coalition has warned that milk buyers must adhere to the sector code of practice or else "face the consequences" of their actions. The warning came following the coalition's January meeting on Thursday. The first since blockades of milk processing facilities resumed in late December.

The coalition, a group of farming organisations, orchestrated protests over the summer under the SOS Dairy campaign, which saw supermarkets targeted in a name-and-shame campaign and processing plants blockaded. The protests led to the repeal of a number proposed cuts to farm-gate milk prices, which were set to come into effect in August, and the establishment of a voluntary 'code of practice' governing the dairy supply chain.

However, over the past month farmers have become restless as evidence mounts that milk buyers who signed up to the code last summer are not upholding their part of the bargain. On 4th January suppliers of Arla Milk Link were given four days' notice of a 0.23 pence per litre cut to the price paid for their milk.

The Dairy Coalition said on Monday (21st January) that companies signed up to the code of practice must honour their commitments on Contractual Relationships and called for further price rises for milk producers, as average milk prices remain below the cost of production and input costs continue to rise.

The coalition said it would resume naming and shaming processors and retailers whose commitment to the code of practice has lapsed in recent months, unless they act on farmers' calls.

Fighting talk from unions

NFU dairy board chair Mansel Raymond said on Monday, "If Co-ops, smaller processors or any milk buyer for that matter thinks the code doesn’t apply to them, they are wrong. It is the responsibility of every milk buyer to ensure the voluntary approach to improving milk contracts succeeds. The alternative is legislation and the coalition will not rest until we see better more balanced contracts for dairy farmers."

The NFU also called on Farming Minister David Heath to give his full support to the code, and consider bringing in legislation to level the playing field for producers and processors if milk buyers continue to flout voluntary measures.

Although Dairy UK has put forward the end of March as a potential date for improving contracts, NFUS spokesperson Gary Mitchell said, "We’d like to see improvements before this date, we certainly will not sanction delays beyond this."

Farmers for Action chair David Handley added, "Despite all of our efforts, farm gate milk prices for deliveries in January are typically only 1ppl to 2ppl higher than in April 2012. Since then, however, costs of production have risen by 3ppl to 4ppl. Farmers need to see improving dairy market conditions translated into farm gate milk price rises."