Milk price debate - Mike Treleaven visits Dairy Crest in Totnes

12.00.00am UTC (GMT +0000) Wed 29th Oct 2003

Totnes Liberal Democrat Parliamentary Spokesperson Mike Treleaven visited the Dairy Crest milk packaging plant in Totnes to find out for himself about the problems facing farmers and the milk industry in the on going row over milk prices.

The factory in Totnes processes around 700,000 gallons of milk a week supplying the major supermarkets as well as smaller outlets. All the milk is sourced from the West Country with 60% from directly contracted farmers and 40% from co-ops. The factory employs around 230 people working 7 days per week, 24 hrs per day making it one of the major employers in the Totnes area.

Commenting on the visit Mike Treleaven said:

'Dairy Crest have a modern facility in Totnes which has seen considerable investment over recent years. They are a major employer in the area and their milk is supplied throughout the region. I am delighted that they only use milk from Devon, Cornwall and Somerset and brand it as a West Country product.' He continued:

' There is no doubt that we have a big problem with the price received by the farmer even though, I believe, Dairy Crest pays slightly more than other producers. The fact of the matter is simple. Dairy farmers are not getting a price that gives a sufficient return for all the hard work they put in and the capital invested. Similarly companies like Dairy Crest have to have a reasonable return to keep going and they are squeezed by the big supermarkets. The vast majority of milk is now sold through the supermarket chains at prices which do not allow sufficient return for farmers. The pricing structure throughout the industry has to be adjusted to allow everyone to be financially viable otherwise we are going to have dairy farmers going out of business and a rapid decline in home produced milk.