FDBusiness.com

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

 Breaking News
  • AB InBev to Sell Australian Business For US$11.3 Billion to Asahi Group Anheuser-Busch InBev has agreed to divest Carlton & United Breweries (CUB), its Australian subsidiary, to Asahi Group Holdings for Au$16.0 billion, (US$11.3 billion) in enterprise value. The transaction represents an implied multiple of 14.9x 2018 normalised EBITDA. As part of this transaction, AB InBev will grant Asahi Group Holdings rights to commercialise the portfolio of AB [...]...
  • UK Spirits Boom Shows No Signs of Slowing Spirits producers across the UK are gearing up to dramatically increase production over the next 12 months amid signs that the boom in UK spirits is set to continue, according to research conducted by a campaigning alliance that has just been launched. A poll by Survation for the newly-established UK Spirits Alliance has found that 65 [...]...
  • Mondelēz International Completes Acquisition of Majority Interest in Perfect Snacks Mondelēz International has completed its acquisition of a majority interest in Perfect Snacks®, a pioneer in the fast-growing refrigerated nutrition bars segment with a range of offerings including Perfect Bar, The Original Refrigerated Protein Bar™, and Perfect Snacks’ other lines of organic, non-GMO, nut-butter based protein bars and bites. “The Perfect Snacks majority acquisition further expands [...]...
  • Interim Revenue and Profits Up at Nichols Nichols, the UK-based soft drinks group, has reported a 10.2% increase in revenue to £71.6 million and a 2.0% rise in profit before tax to £13.3 million for the half year ended 30 June 2019, compared to the corresponding period in the previous year. EBITDA increased by 9.7% to £15.3 million. To support the trading [...]...
  • First Milk Announces Proposed Changes at Scottish Creameries First Milk, the UK dairy co-operative, has announced the commencement of employee consultation about proposed changes at its Scottish Creameries. The Scottish Creameries were put up for sale in April 2018 when First Milk announced that its Campbeltown and Arran Creameries were not core to its business strategy for the future. Despite significant effort over the [...]...

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

  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements