British dairy farmers are facing “enormous financial pressures” as farmgate milk prices remain low and input costs remain high.
This is according to the Royal Association of British Dairy Farmers (RABDF), which warned dairy farmers to prepare for a tough winter.
RABDF chair Di Wastenage said farmers are “caught in the crossfire”, with little let up forecast in the short-medium term.
“The difference between the farmgate milk price and retail price is currently a very live issue on farm for our members,” she said.
“Our dairy farmers are facing enormous financial pressures. They are caught in the crossfire with farm gate milk prices remaining low, while farm input costs are stubbornly high and high retail prices impact consumer demand too.
“We recognise UK processors also continue to face high energy and labour costs, which are reflected in these results. The key difference in the current retail price of cheese is because it is manufactured using higher cost milk from earlier in the year.”
Looking ahead to the next six months, Wastenage said global markets are offering little positivity for dairy farmers in the UK.
“The downturn in demand for whole milk powder (WMP) from China and the forward forecasting from Fonterra suggest this is going to become an uncomfortable year,” she said.
“Sadly, for many, this may be financially unsustainable.”
“The UK needs a dairy industry from the farmgate to the supermarket shelf to operate efficiently and profitably for all sectors along the supply chain. We must ensure this happens and that the value is shared with all parties.”
