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Page last updated at 08:10 GMT, Saturday, 21 July 2012 09:10 UK

Milk price: Who's to blame?

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Farmers have staged a second night of protests by blockading a milk processing plant in Worcestershire. They say they are getting up to 5p a litre less for milk than it costs to produce. The Co-op has showed some movement as it announced on Friday it is to increase the premium it pays on milk to farmers within its group but will it be enough? And is the culprit for driving down prices the supermarkets, the milk processors or world prices?

Sarah Swaddling of Farming Today said that "the milk processors, the middle man between farmers and the supermarkets, are the source of farmers' anger" due to exposing themselves to the world cream price, which has recently crashed. She added, "Morrisons, Asda and the Co-op are the focus of low milk prices but they have announced a small increase."

Food director of British Retail Consortium, Andrew Opie said that there is "a variation in price between those in the top quarter of dairy production and those who aren't and farmers who are lucky are those in supermarket supply chains". He explained: "Even if we paid a pound a litre for liquid milk, it wouldn't help farmers because we only need a certain proportion of milk."


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