Dairy farmers suffering from 4p/l price gap

UK - The gap between the price dairy farmers receive and the costs they face continue to widen, providing further evidence that the market just isn’t functioning, dairy board chairman Gwyn Jones told NFU council this week.
calendar icon 12 October 2006
clock icon 1 minute read
Presenting the findings of the NFU’s recent survey into the impact of this summer’s drought and the hike in fuel prices, Mr Jones said that, on average, dairy farmers had seen their costs increase by 0.8p/litre.

This included the fact that 96% had been obliged to buy in supplementary feed and 62% had also faced a drop in milk yields. The cost of providing energy and water had gone up 0.13p/litre alone.

This took the average cost of milk production to over 21p/litre, compared with an average price received by the farmers taking part in the survey of just over 17p/litre. “This market just isn’t working.”

Mr Jones said the NFU would be pressing ahead with its invoicing campaign. It would be circulating sample invoices to its members and inviting them to return them to the NFU.

Source: fwi.co.uk
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