FDBusiness.com

British Dairy Farmers Being Short-changed to Tune of £200 Million

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

British Dairy Farmers Being Short-changed to Tune of £200 Million

British Dairy Farmers Being Short-changed to Tune of £200 Million
October 07
14:27 2016

Market indicators show dairy farmers are being short-changed to the tune of £200 million pounds, according to the National Farmers Union (NFU) in the UK. It is calling for milk buyers to recognise the strength of current markets and start paying fair, sustainable prices to their milk suppliers.

After two years of turmoil in the dairy sector, during which time milk prices for many farmers have been, and continue to be, below the cost of production, commodity markets have now quickly turned. Evidence shows market signals are pointing skywards with spot prices for milk now approaching 40ppl and quotes for next month hitting 50ppl.

NFU dairy board chairman Michael Oakes says that milk buyers are lagging behind in passing on the huge lifts in market prices to their suppliers. “Since May this year market indicators have started to show a massive differential between what prices dairy farmers should have got compared to what they actually did get – between June and September this adds up to around £200 million,” he points out.

Dairy analyst Chris Walkland has being doing the sums – they show that back in August AHDB’s AMPE and MCVE indicators were 26ppl and 28ppl respectively while future price indicators continue to be positive. Even today most non-aligned prices are still at or below 20ppl with the August Defra average milk price, which included aligned prices only reaching 21.34ppl.

“Clearly milk buyers should be concerned as to where their future milk supply will come from,” comments Michael Oakes. “That’s why recently we’ve seen Dale Farm Northern Ireland encourage more milk supply for the next three months. Any extra litres. supplied to the co-operative will receive an extra 4ppl on top of a 2ppl winter premium. Farmers have been patient, understanding the time lag that is part of dairy trade. But that reason is starting to wear thin, as we need to start considering increased costs of winter housing and feeding. Our message is clear – until milk buyers start backing British dairy farmers and start paying fair, sustainable milk prices, volumes will not recover.”

Michael Oakes adds: “Dairy farmers want to produce milk and the only way milk buyers can pull the dairy sector out of this nose dive is to quickly pay them a profitable price for their milk.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
  • October 1, 2018Poznan International Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements