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The Last Drop of Milk: UK Running Short
UK - Consumers who take milk for granted may be in for a shock over the next few years if current supply trends continue.Farmers, while receiving considerably more from all the main buyers than they were a year ago, are still doing little more than covering production costs – and only then if they are at the efficient end of the spectrum, reports the Scotsman
Ian Potter is one of the leading dairy industry commentators in the UK and he is genuinely concerned over future supplies, after UK production in the year to 31 March 2008 fell to its lowest for 37 years.
He told The Scotsman yesterday: "Production in June was down by over 20 million litres on the same month last year. This decline shows no sign of halting and unless ex-farm prices increase there will definitely be less milk on the market."
Potter is amazed at the attitude of some of the major processors. He said: "I have been told recently by two of the big players that they actually expect production to increase over the coming winter months. Frankly, I don't know what planet they are living on. Do they not realise how much production costs have increased?"
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