Helen demands “regulator with teeth” to protect dairy farmers

Helen Morgan, MP for North Shropshire, is demanding the Government take urgent action to protect British dairy farmers, as news emerges that some suppliers have slashed the prices farmers receive for milk by up to 18%.

The Liberal Democrat MP is calling for wholesale reform of the regulatory process that governs the dairy farm supply chain and for a new, empowered and unified regulator with the resources and scope to enforce standards and ensure prices are fair.

Both the Groceries Code Adjudicator (GCA) and the Agricultural Supply Chain Adjudicator (ASCA) currently regulate the industry, which has created a fragmented and weakened regulatory approach, the MP has claimed.

Dairy co-op Arla Foods, which works with farmers across Shropshire, confirmed that its October milk price will drop by 1.7pence per litre (ppl) to 45.34ppl. Another, Freshways, announced a cut of 6ppl, while one supplier, Parkham Farms, announced an 8ppl drop for November milk to 35.5ppl - a cut of 18%.

House of Commons Library research commissioned by the Liberal Democrats earlier this year has revealed the dire situation many dairy farms already find themselves in. Since 2015, the total number of dairy farm holdings in England has decreased from 12,643 to 8,738 in 2024 - down by just over 30%. In that time, dairy livestock numbers have decreased from 1,131,494 to 1,045,819.

Farmers in Shropshire and across the country are already facing the threat of the family farm tax and cuts to basic payments.

Many local dairy farmers now face the challenge of low prices but also a tiered pricing system in contracts with co-operatives, which see them penalised even further. The MP has previously pushed the Government to do more to protect farmers from large multinational co-operatives by strengthening the Fair Dealing Obligations (Milk) regulations.

MP for North Shropshire, Helen Morgan, said, “At a time when farmers in North Shropshire are already having to deal with the fallout of summer drought, cuts to basic payments and the looming threat of the Government’s family farm tax, these price cuts come as yet another kick in the teeth.  

“There can be absolutely no justification for cutting prices for dairy farmers on such a scale. British farmers put food on our table, they are the backbone of the rural economy and are fundamental to our national security.

“The Liberal Democrats are calling for a new, unified and empowered regulator with the teeth to stand up to the big corporations and ensure British dairy farmers across Shropshire finally get a fair deal.”