RECENT falls in the value of Sterling must signal improvements in the price paid to British dairy farmers, says the NFU.

Chairman of Cumbria NFU Steve Dunning said: "Sterling has weakened against the Euro by some 10 per cent in the last four months and might weaken even further. The exchange rate has been recognised by the industry, and especially by processors, to be one of the main drivers of milk price and is traditionally given as one of the main reasons for depressed milk prices. Following this rationale, the weakening of the pound must lead to a significant price rise for producers."

Mr Dunning added: "Rises in the intervention price and the target price must translate into a rise in the farmgate price. There can be no excuses. Dairy farmers expect and demand that milk process rise. Over the summer we will be doing all we can to make that happen."

May 15, 2003 13:00