If Labour cares so much about the price of milk, why doesn't it join with dairy farmers?

Milk has been over the news recently, but there's a silence on the left over the plight of its creators.

Over two thousand angry farmers jostled their way into the hall. Chequered shirts and ruddy faces replaced the stereotype of the pale adolescent protester. Many had left their dawn milk rounds to flood to Westminster and speak out against the latest round of price cuts forcing them under. You could feel the anger in the thumping ovation received by the first speaker:

"I have never seen this level of frustration before, nor have I seen such determination to right the wrongs of this industry," thundered Mansel Raymond, dairy chairman of the National Farmers Union, "Society doesn’t realise that this market place just doesn’t work."

The left generally ignores rural campaigns. A child of the trade union movement, Labour grew up to address inner-city concerns in urban areas where the majority of voters now reside. We forget our brothers and sisters in the countryside suffer similar injustices. New technology hasn’t changed things. Documenting the farmers’ protest (#SOSdairy) got almost no response from a twittersphere that remains urban in composition and priority.

But if there was ever a case of irresponsible capitalism, this is it.

Take Emily and Rob Bradley, a young brother and sister who run a family farm on the Isle of Wight. They start milking at 4am and work until 6pm, cleaning, managing and feeding. Throughout the night they get up to check their herd of some 360 cows, looking out for calves and heifers that need support. For all this, buyers offer them 20p per litre.

"It’s disgusting how little we’re paid compared with the effort we put in," says Rob, "The supermarket does almost nothing. . . most of the public don’t know what we have to do. Youngsters think milk is made in the shop."

"We’ve spoken about whether we’re carrying on. We’re only just breaking even and we’ll be making a loss and going into debt if these price cuts continue. . . If it comes to it we’ll take direct action."

If this was just the result of the brutal efficiencies of the market, maybe we’d accept it. But there is no free market here. Farmers only have a handful of processing companies to sell to – Wiseman, Dairy Crest and the Co-op First Milk – who can collude to set prices. This year these giants have slashed the price of milk by 4p a litre – at an average cost per farm of £50,000 – with the latest cut due to come in next month.

What’s worse is that farmers are stuck in these contracts. Even if the processing company decides to change its milk prices half way through a term, the farmers cannot walk away. One processor – Dairy Crest – gave farmers just four days notice of its last cut.

Processors say the latest move is the result of a decline in the commodity markets for skimmed milk powder and wholesale cream, but it’s interesting that the less powerful partner always seems to be the one to take the hit.

With the farming minister Jim Paice recently being caught out for not knowing the price of a pint of milk (46p by the way), the Conservatives – who usually manage to hoover up some 85 per cent of rural votes – are also looking out of touch.

Addressing the angry crowd of farmers at Methodist Central Hall yesterday, Paice said that ministers were "not in the business of setting prices" and that he would do nothing to reverse the cuts, adding, "There will be no return to the old days of central government interference".

Adding a heavy-handed state intervention on to an over centralised market may well create more problems. But there are other actions the government could take to solve this imbalance of power. They could introduce a law allowing farmers to terminate a contract with three months notice (although the minister says EU rules prevent this). Or they could increase investigations and sanctions for price collusion. These measures wouldn’t block the free market; they’d empower it. Farmers could also help themselves here by starting co-operative processing chains of their own.

"I don’t think politicians realise what it’s like," says Rob, "They should come and do a milk internship for a few weeks and see what we do here. See what it’s like to deliver a calf or get bruises or broken fingers from young heifers. The dedication we have to show."

Dairy farmers have already sprayed thousands of litres of milk outside the European Parliament to protest against the low prices and the phasing out of quotas. Here in the UK, the direct action is continuing. Seven hundred farmers came out to protest in Stafforshire this month, and there is deep unrest in Scotland. Farmers for Action say that more disruption can be expected – perhaps even during the Olympics – if prices continue to fall.

It is clear that farmers are at breaking point. As far as they see it, price cuts mean farm closures. Their numbers have already dropped by 40 per cent in the last ten years, and according to the Food Standards Agency, about three farmers are now leaving dairy farming every week. Farmers will do anything to stop further cuts because they have nothing to lose.

"As young farmers we need to see a future," says 17-year-old Oliver Yeatman who works on a small farm in Dorset, "It’s a lot of hard work and you’re not going to join if there’s no money in it. I’m at level three of my diploma in agriculture and I’d love to be a full time farmer, but it could be a waste of time."

If Ed Miliband truly believes in responsible capitalism, he should take this on. Farmers should be given the chance to work. Shutting them out will only decimate the supply chain. In the long term, that means we’ll all be paying a higher price for milk. Challenging this trend wouldn’t just leave the country better off, it would also demonstrate Labour could speak to the countryside as well as the towns.

Farmers protest EU agricultural policies. Photograph: Getty Images

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.