Rural accountants Old Mill have revealed that some of their clients in the south west lost 11p / litre last year and they warn things could get worse following recent milk price cuts. The average cost of production amongst farming clients was 35.04p / litre in 2011/12. Without single farm payment, Old Mill say that the break even price would be 37.09p and many farmers are now only receiving 26p – a milk price 11p below the cost of production!
The sun may have been shining in the skies over south west Britain in recent days but many dairy farmers are living under a very dark cloud and I am afraid that calls for fairer milk supply contracts and shorter notice periods will do little to plug the huge shortfall that many producers now face.
We must break the cycle of chasing higher output from bigger herds simply to absorb more pressure from higher up the supply chain. If we are to stop the ongoing exodus from our industry, we need to radically change the way in which our product is perceived and valued in this country. Free Range Dairy is working to try and get messages across about all that is good about the remaining dairy herds we have today. But, we need your support if we are to mount a major offensive to win public support.
Don’t sit under a cloud – join Free Range Dairy and help to build a brighter future for British dairy herds! For the full article please follow this link.