Dairy Industry Needs 3.7ppl Price Increase
UK - The dairy industry needs a sustained milk price increase of at least 3.7 pence per litre to secure its future, according to the latest farm analysis from Promar Farm Business Accounts (FBA).
11 September 2007
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This figure will raise average yearly farmgate prices to 22ppl, which Promar say is necessary to secure the minimum necessary profits for a dairy farm.
The comprehensive survey sampled 118 specialist dairy farms from around the country in an attempt to illustrate the challenges that face the industry.
Promar Regional Consultant, Andrew Thompson, said: “The results this year demonstrate the real extent of the problems being faced. The year to March 2007 was horrendous for dairy farmers with a range of factors combining to exert huge downward pressure on margins.
"Milk prices continued to fall while production costs rose. As if that was not enough we experienced a severe drought leading to increased purchased feed use, both concentrates and forages, while yields fell.”
According to the survey, the average farm made a profit of just under £15,000 on a turnover of £320,000 for the year ending March 2007.
