TheDairySite.com - news, features, articles and disease information for the dairy industry

News

Pressure on Processors Continues - SOS Dairy

01 October 2012

UK - Most dairy processors have now moved farmgate prices from October 1st. Some have been bold enough to quote forward prices from November 1st, so where are we now, asks Farmers for Action (FFA).

According to FFA’s calculations most dairy producers are 0.4 pence per litre better off than they were in April 2012. This obviously is not where we need to be.

Most retailers and processors including middle ground retailers, food service industries must surely be aware of the current cost of producing a litre of milk in the UK in these exceptional circumstances, says FFA.

Therefore FFA intends to increase the pressure on all these bodies to get further substantial increases not only for November but December of 2012. In a press statement the group also said it was conscious that it has to manage dairy farmers’ expectations. To go forward UK dairy must be competitive in the world market as well as domestically.

On liquid milk FFA does not envisage a problem reaching prices in excess of 32 pence per litre. But the group is concerned of the impact that this will have on cheese and other dairy products enabling processors to compete with other global companies.

Therefore it is imperative that FFA keep talking to the processing industry to find innovative ways in which dairy farmers can be paid the price required to produce a litre of milk but that doesn't impact on their ability to grow their businesses. After all no milk means no processors. No processors, would be a big problem for dairy farmers, says FFA.

Dairy Coalition The dairy coalition continues to work tirelessly on behalf of all its individual members. FFA is continually in dialogue with coalition partners on issues such as how we progress with producer organisations, how we can achieve a formula that takes cost of production into farmgate milk prices, and many other things associated with dairy farming.

The coalition has signed up to work together for at least another 12 months and it is FFAs hope that at the end of this period we will have some form of template to make UK dairy both successful and above all profitable.

Further Reading

Go to our previous news item on this story by clicking here.

TheCattleSite News Desk



Partners


Seasonal Picks

Managing Pig Health: A Reference for the Farm - 2nd Edition