Dairy farms squeezed even harder as income halves due to milk price war

The average takings of UK dairy farms dropped 45pc to £46,500 last year as the cost of wholesale milk slumped 14pc.
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By Elizabeth Anderson – Britain’s troubled dairy farmers are facing another year of crisis, as official statistics project the income of dairy farms will have almost halved in this tax year to an average of £46,500.
The drop in revenue was mainly the result of plummeting wholesale milk prices, and came despite one-off support payments from the EU totalling £26.2m, or around £2,000 per farmer.
Farm gate prices fell to 23.71p per litre in December, a 14pc drop on the year before and a 2pc fall compared to November, according to data from the Department for Environment, Food and Rural Affairs (Defra).

The raging milk price war has forced dairy farmers either to cull their herd to sell as beef, close completely or switch to other types of farming.
Producers have also suffered from softening demand from China for milk and a Russian ban on European imports. There are now 9,633 dairy farms across the UK, with 300 lost in the past year. The number has halved compared to 10 years ago, when the figure was 20,313.
However, the overall volume of milk increased by 6pc last year, as farmers squeezed out more milk from their remaining herd. Defra said that farmers also benefitted from lower feed costs, reflecting a decline in the cost of wholesale cereal and soya.

Jenny Stevens, who owns Peak House Farm in Hampshire with her husband Mark, says running a dairy farm is no longer sustainable on its own and she also runs a small B&B on the land.
Her sons, who are 21 and 15, help run the 140-acre farm that is home to 100 dairy cows. She couldn’t afford to hire full-time workers to milk the cows.
“We’re not making any money. The price at which we have to break even keeps falling. It’s not always been this bad. People ask, ‘why do you do this’? But it’s what our boys want to do. We’re looking into making yoghurt and other dairy products,” she said.
Campaigners have argued the dairy industry is facing a «bloodbath» as major buyers continue to drop the price they are willing to pay for milk.
“With no sign of a market upturn in coming months we will inevitably see a large number of dairy farmers leave the industry. No-one can continue to produce milk at a loss,» said Rob Harrison of the National Farmers’ Union.

Farm type Income Income change
Poultry £145,000 Up 14%
Dairy £46,500 Down 45%
General cropping £43,000 Down 17%
Cereals £34,000 Down 24%
Pigs £26,500 Down 46%

It’s not only dairy farmers that have seen their incomes plummet. Cereal farmers have been hit by a surge in global production and a strong pound, causing their income to drop 24pc to £34,000. Farms in general cropping recorded a 17pc fall in income to £43,000, as wheat and sugar output fell.
However. it has been a better year for poultry farmers, whose farms generated around £145,000 last year, a 14pc rise, partly due to lower feeding and heating costs.

 
Source: Telegraph
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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