Farmers Guradian
Topics
Nine ways to keep your farm vehicles safe

Nine ways to keep your farm vehicles safe

Arable Farming Magazine

Arable Farming Magazine

Dairy Farmer Magazine

Dairy Farmer Magazine

LAMMA 2018

New to Farmers Guardian?
Register Now
Login or Register
New to Farmers Guardian?
Register Now
New to Farmers Guardian?
Register Now

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days
Already a Member?

Login | Join us now

Significant dairy industry exits 'inevitable', says NFU

The NFU’s Rob Harrison gave a frank outlook for the dairy industry following another round of farmer price cuts by UK processors


Twitter Facebook
Twitter Facebook
The NFU urged dairy farmers to think carefully about their future in the industry
The NFU urged dairy farmers to think carefully about their future in the industry

Large numbers of dairy farmers will inevitably leave the industry with no sign of market improvement in the coming months, the NFU has said.

 

Speaking after another raft of price cuts from UK processors in recent weeks, the union pointed to rumours of ’serious undercutting’ at processor level with milk buyers fighting for market share. It said producers could not continue to produce milk at a loss.

 

NFU dairy board chairman Rob Harrison said: "I would urge every dairy farmer out there to seriously look at his or her own business and question whether it can survive another period of low milk prices.

 

"The NFU is meeting with banks regularly but take clear advice. I want you to speak to your own bank, your consultant and your accountant. Producing milk at a loss benefits no-one and we all want a strong, resilient industry here in the UK."

 

Arla became the latest milk buyer to cut prices last week, with returns falling 0.75ppl from February 1 taking the standard litre price to 21.8ppl. The NFU said cuts were coming on the back of a stagnant global market.

 

Muller Milk and Ingredients also cut supplier prices 1ppl in recent weeks and First Milk farmers were informed of a January price cut late last month.

 

"We know global factors have impacted demand, the ruthless retail price war is still at large and milk volumes in the UK and across Europe continue to increase with no sign of slow down," Mr Harrison added.

 

"Milk contract terms and pricing schedules are being changed with no negotiation, flouting the voluntary code, farmers are being put on notice and there are rumours of serious undercutting at processor level as milk buyers fight for market share at retail and elsewhere.

 

"It is a bloodbath and those suffering the most are our hard working dairy farmers."

 

Mr Harrison urged support for British dairy and said the industry also needed to look at ways to manage price volatility.


Read More

Arla slashes February milk price by 0.8ppl Arla slashes February milk price by 0.8ppl
Boss of new-look Muller outlines ambitious plans Boss of new-look Muller outlines ambitious plans
Could it be 2017 before dairy markets recover? Could it be 2017 before dairy markets recover?
Dairy markets to continue growth despite short-term woes Dairy markets to continue growth despite short-term woes
Muller farmers see 1ppl price cut Muller farmers see 1ppl price cut

Twitter Facebook
Post a Comment
To see comments and join in the conversation please log in.
Facebook
Twitter
RSS
Facebook
Twitter
RSS