Market Threat to Milk Industry
A government report confirms that the UK dairy industry is facing an uncertain future because of volatile prices and market conditions.
The Defra-funded study from Manchester University shows a higher- than-anticipated number of larger, more profitable herds have quit production and says milk output is likely to fall below quota by more than one billion litres.
NFU dairy board chairman Gwyn Jones said: “This report reinforces our view that milk price cuts and general volatility have seriously eroded the confidence of all producers, threatening the future viability of domestic milk supply.
“If a sustainable future is to be achieved for the dairy industry, a profitable supply base is vital.
“That simply will not happen if short-sighted pricing decisions from those further up the dairy chain continue to drive even the largest, most efficient herds from production, as evidenced by this report.
“The inherent competitiveness of dairy producers in England and Wales coupled with fantastic market opportunities should be enough to ensure a long-term stable production base, but dairy farmers must have the confidence to invest in the future of their businesses.
“Fair and profitable returns to dairy farmers are the only ways in which this can be achieved.
“If those further up the chain are to enjoy the benefits of secure supply, then they must address the culture of tit-for-tat price cuts that threatens to undermine the whole industry.”
The report, Changes in England and Wales Dairy Farming since 2002/ 03: A Resurvey, has been published days before North-East dairy farmers embark on a campaign to get public support for their plight.
Although milk in the shops costs about 50p a litre, dairy farmers only receive about 18ppl. Since it costs about 17ppl to produce a litre of milk this only leaves a profit of 1ppl.
And some farmers struggle to make even that. To raise awareness of this issue, farmers are meeting at the Haymarket in Newcastle for the NFU’s annual Food and Farming Roadshow.
They will be encouraging the public to sign a petition calling for a fairer deal for farmers.
Dairy farmer Denis Gibb, who has 250 dairy cows at his farm at Dalton, near Newcastle, said: “Around 1,400 farmers in Yorkshire and the North-East produce milk ( most of them running small family farms that are the backbone of agriculture in this part of the world.
“We believe people will be shocked to learn how little dairy farmers get for their milk.”
Farmers will also be handing out free drinks of milk to children and explaining to them how their milk gets from the cow to the doorstep, with a little help from Annabelle, the cut-out cow.
Also, Women’s Institutes have been debating the issue of farmgate milk prices and have drawn up a resolution for their annual general meeting, calling for dairy farmers to be given a better price for their milk.