Dairy Prices Continue to Drop

04 May 2016, 10:00 AM
  • Further milk price cuts are set to be made in the next two months, despite the dairy sector experiencing the lowest average milk prices yet for seven years
Dairy Prices Continue to Drop

Milk buyers including Muller, Dairy Crest, Arla and First Milk have announced further cuts to milk prices, which for some farmers now stands below 16ppl.

The National Farmers’ Union (NFU) is calling on all businesses within the industry to seek solutions to the situation which is becoming difficult for even the most efficient dairy farmers to survive.

Michael Oakes, dairy board chairman at NFU said, “There’s no question that this is the most difficult time many dairy farmers have ever faced with milk prices far below breakeven levels.

“What we have seen is that UK dairy farmers are reacting to the market reality – with daily milk volumes now falling below production this time last year. This unfortunately is not the case elsewhere in Europe.

“Processors must clearly explain to farmers what they are doing to try to add value at this difficult time and farmers need to be honest with supplier on their production plans for the months ahead.

“We need UK processors and co-operatives to consider new ways for managing risk to support both themselves and their supplying farmers – continuing to follow the market down is not good enough.

“We thank those retailer businesses that have stuck by their initiatives on liquid milk and cheese throughout this market downturn. Retailer initiatives can bring sustainability for dairy farmers. We would like to see all stakeholders within the supply chain take steps towards introducing sustainable principles into their own supply chains. This would give greater collaboration allowing for supply chain efficiencies and ensuring the UK dairy sector remains competitive on a global market.”

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