LEADERS of the UK farmers' unions will hold crisis talks in Stratford today as MPs discuss the plight of the industry in the annual Parliamentary debate on agriculture.
Before leaving for the meeting, George Lyon, president of the National Farmers' Union of Scotland, said: ''We have to make the Government understand the depth of this crisis and the way in which it is threatening the very survival of those family businesses on which the well-being of the rural environment depends.''
It was essential for the UK unions to work together in the search for solutions to the industry's current problems, he said.
The Milk Forum, which represents the milk-buying co-ops and those processors which source directly from Scottish producers, warned MPs of a ''rural meltdown'' caused by the plight of dairy farmers.
Jack Pirie, managing director of Scottish Milk, forecast
hundreds of jobs would be lost if the strong pound continued to hit milk prices and the Government failed to apply for agri-monetary compensation.
In his view, the Fontainebleau Agreement had saved the taxpayer billions of pounds and now, when the dairy industry was at breaking point, the
Scottish Office was insisting compensation was not on its agenda.
''Sadly, this home-grown industry does not seem to attract attention in the same way as inward investments like Hyundai and Lite-On,'' he observed.
''Manufacturing confidence is suffering at the moment with companies finding it difficult to export. But spare a thought for the dairy farmer whose net income has fallen by up to 40% in the last year alone.''
Meanwhile, the Commons Welsh Affairs Select Committee has concluded that the UK livestock industry is in crisis and has called for immediate emergency aid to enable farmers to survive.
It suggested Wales was hardest hit and forecast that much of Welsh agriculture would be destroyed within a decade unless urgent action was taken to reverse the decline.
In view of widespread concern about the role of supermarkets and the retail pricing of meat, the committee called for an independent study, possibly by the Office of Fair Trading.
The fall in livestock prices had not been matched by a comparable fall in shop prices and the farmer's cut of the retail price had fallen markedly. The MPs' feeling was that, despite farmers' deep suspicion, supermarkets did not appear to have been profiteering at farmers' expense.
''But they have clearly not been suffering greatly either. Whether or not they make a profit on meat, their overall
profits are considerable,'' said the report.
''The bargaining power of farmers has progressively weakened as retailers' control of the supply chain has increased.
''It is essential that the supermarkets do not use their position of strength to force meat prices down still lower.
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