LONDON: Plunging prices of milk which have already halved the number of dairy farmers in the UK could see a further 50 per cent forced to leave the profession in a decade if prices continue to fall, the National Farmers Union has warned.
There are now just under 10,000 dairy farmers in the UK compared to 20,000 around 10 years ago. And if supermarket price wars over milk continue to drive down prices, by 2025 more dairy farmers may be forced to out, leaving less than 5,000 in the UK.
A pint of milk is now being sold for just 22p, making milk cheaper per litre than bottled water in many supermarkets.In December alone 60 dairy farmers in the UK gave up the profession as prices began to be slashed.
The news comes as First Milk, the largest dairy company in the UK, announced it would be delaying payments to farmers by two weeks because of the currant ‘volatility’ in the industry. This is a further blow for farmers who are already suffering because of the price cuts, which they say devalues their product and makes the cost of running a dairy farm now outstrip the price they receive for milk.
Meurig Raymond, president of the National Farmers’ Union (NFU), said: ‘The recent milk price cuts, from most processors, have had a massive impact with some farmers now facing their lowest milk price since 2007, at around 11.4p per litre.At the same time, farm costs remain some 36 per cent higher than they were eight years ago and the single largest cost component of a dairy farm, animal feed, is more than 50 per cent higher than 2007 levels.
