Producers Flex Their Muscles To Milk Prices As Supplies Dry Up

UK - Not for almost 30 years have dairy farmers found themselves in a position where they can begin to dictate the price they want to receive for their milk.
calendar icon 29 August 2007
clock icon 1 minute read
The shoe is on the other foot now.

It has taken a long time for the laws of supply and demand to percolate through this intensely complicated sector of the farming industry.

But the facts are clear: there is not enough milk to go around and returns to producers are on the rise and will increase still further, judging from the comments of those who have a real understanding of the market situation.

Since the deregulation of the milk industry 20 years ago and the abolition of the former comfort zone that was enshrined in the statutory marketing boards, farmers have been subject to the realities of the real world.

Many signed up to farmer-owned co-operatives, with First Milk being the prominent player across much of Great Britain. Others secured deals with independent buyers, including Robert Wiseman Dairies, on relatively long-term contracts.

Source: Scotsman

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