THE chairman of the Tenant Farmers Association (TFA) has called on the Government, retailers and food sector to make more use of home-produced milk.

Stephen Wyrill, a tenant farmer from near Catterick, said it has been estimated that an additional 1bn litres of domestic milk could be used through import substitution.

He called for a new strategy for the dairy sector to help producers who face low prices with little prospect of any immediate improvement.

Mr Wyrill said that at least half of all dairy farms are on tenanted holdings and many face severe cash flow and income deficits.

"As a tenanted dairy farmer myself I know exactly how difficult things are," he said. "We have had our expectations raised and dashed so many times over past months, but there is little which appears to be giving any confidence for the future."

He said David Handley, from Farmers for Action, had done a sterling job in negotiating a greater share of retail and wholesale prices going back to farmers.

"But we desperately need to move to a position where dairy farmers are able to take control of their production and pricing. This is a complex area but we must grasp the nettle," said Mr Wyrill.

"The old saying that even the longest march starts with the first step is so apt for the current situation within the dairy sector. I would argue that the most important first step to make is import substitution.

"It is estimated that an additional one billion litres of domestic milk could be utilised through import displacement. We have seen consumers voicing their support for British dairy farmers and demonstrating that through, for example, sales of the new 'Milk for Farmers' brand from Morrisons.

"However, I have been frustrated to hear stories of how significant consumers of milk and milk products in the food manufacturing sector find it difficult to source British product even when they specify it. This must change," said Mr Wyrill.

He said the Government should take the lead by changing its public procurement policies in line with previously agreed principles set out in it’s own report. This could see a significant increase in the amount of British product used in the public sector.

"On the back of that, we need retailers and the food service sector to use their power in the marketplace to require their suppliers to enter into producer organisation arrangements with dairy farmers to provide better balance within the supply chain and more sustainable returns for all parties," said Mr Wyrill.

"At the same time we also need to be looking at better contract models including more sustainable A/B style models which have not been handled well to date."