A third of UK dairy farmers may quit, survey
UK - Tesco may have waded in to rescue UK dairy farmers last week, but confidence in the sector is at its lowest point since 2004 and more producers intend to quit in the near future, a new survey says.
10 April 2007
1 minute read
More than one in ten dairy farmers, around 16 per cent, said they planned to leave the sector within the next two years, according to the Milk Development Council's annual Farmers' Intentions survey.
Producer numbers could drop by a third up to 2008 if those intending to quit are joined by a similar number that claim they are still 'undecided'.
The survey, completed in February, casts a shadow over an announcement by supermarket Tesco last week that it would pay around 850 of its supplier farmers 22 pence per litre (ppl) for their milk.
Average farmgate milk prices have hovered around 18ppl, below the cost of production for some and prompting 1,000 farmers to quit the sector over the last year.
The MDC surveyed 657 milk producers for its annual 'intentions' report. Previous predictions on numbers likely to quit the sector have turned out to be accurate.
As well as those intending to leave, plans for investment in the sector also appear limited.
