Dairy Farming Boom Adds To Processing Woes
US - A number of leading dairy co-operatives worldwide have announced continuing rises in payouts to their suppliers and farmers as the cost of milk continues to surge.
29 August 2007
1 minute read
"It is evident that international demand for skimmed milk powder will impact on the UK for some years,"
Company chairman Richard Greenhalgh
The increase comes as dairy processors are being put under pressure from both a dwindling supply of dairy products like milk powder, and the need to adapt their production to meet growing demand for specialised products.
First Farms, the UK's leading dairy cooperative said today that a "highly unusual combination of circumstances around the world" was ensuring that the industry was paying much higher prices to farmers for it milk.
The claims are set to further compound the woes of dairy processors, by suggesting that the higher prices for goods could remain in place for the next three to four years.
Company chairman Richard Greenhalgh said that though the current market prices were vital for preserving the milk supply, which has strong undergone volume declines as farmers are forced out of the industry.
"It is evident that international demand for skimmed milk powder will impact on the UK for some years," he stated. "As a result, the price paid to dairy farmers will have to rise if a sustainable supply of liquid milk and cheese for the home market is to be ensured."
Source: foodnavigator.com
